Hyundai Head Puzzles Aides With Reticence

Chung Mong-hun, Hyundai Asan Corporation chairman and the owner of the Hyundai Group, has been secluded for two months after the funeral of his father, Hyundai founder Chung Ju-yung. He makes few appearances at public events except for his short trip to Pyongyang last month. "Because he remains silent about details of various current issues, including the North Korea business, presidents of affiliates feel suffocated," a person close to Mr. Chung said.

His lack of public appearances does not mean he has retired from active management, however. Mr. Chung restarted monthly meetings with affiliates' presidents every third Tuesday, although his comments seemed more oracular than managerial. During last month's meeting, he made a brief remark that "Hyundai Engineering & Construction will be managed under a new system after the shareholders' meeting scheduled on May 18. Hyundai Electronics will be spun off before the end of the first half."

At the meeting held Tuesday, he emphasized "cooperation between the affiliates for mutual benefit."

"Mr. Chung has enough share holdings in Hyundai Elevator Co., the de facto holding company, to maintain his power over the group," said a source in the group's restructuring committee. "Even if he loses Hyundai Construction, he will use the remaining affiliates to find a new source of earnings."

by Kim Nam-joong