Hyundai Motor heir set to solidify control
Hyundai Motor Group Executive Vice Chairman Chung Eui-sun
Chung Eui-sun to officially become Hyundai Motor CEO
By Nam Hyun-woo
Hyundai Motor Group heir apparent, Executive Vice Chairman Chung Eui-sun, will become the CEO of Hyundai Motor and auto parts unit Hyundai Mobis, heralding a new generation at the automotive giant's management, according to a filing by each firm.
Hyundai Motor said in the regulatory filing that its board members will appoint Chung as CEO in its second meeting.
Hyundai Mobis also said it had decided to do the same.
Chung, the only son of Hyundai Motor Group Chairman Chung Mong-koo, has been virtually leading the group in recent years, but was not the official CEO of the two core units.
His rise to the top was expected after he was named executive vice chairman, in charge of other vice chairmen, in September and made sweeping changes among group executives in December. Those moves were interpreted as tightening his control over the group.
If the plans go as scheduled, Chung will be one of four CEOs at Hyundai Motor along with the senior Chung, President Lee Won-hee and Vice President Ha Eon-tae. In Hyundai Mobis, he will share the CEO post with the senior Chung and President Park Chung-kook.
“Executive Vice Chairman Chung is focusing his efforts on the company leading the industry's paradigm amid various changes toward future businesses,” Hyundai Motor said in a statement. “The company expects a virtuous cycle of growth leading to improvements in shareholder value will be set up, given Chung has been stressing the importance of communication with investors and the market.”
Along with Chung's appointment, Hyundai Motor directors also decided to keep its dividends the same as 2017 at 4,000 won per share, although this raises its payout ratio from 26.8 percent in 2017 to 70.7 percent.
Also, the directors designated UBS Group Vice Chairman Yoon Chi-won as a candidate for one of its outside directors. Yoon was recommended by shareholders. Following that, the number of Hyundai Motor board members will grow to six outside and five standing directors.
Hyundai Mobis directors decided to appoint former Continental AG CEO Karl-Thomas Neumann as one of its outside directors. He will be the first foreign outside director at Hyundai Mobis.