Out on bail, Hyundai chief visiting India

Hyundai Automotive Group said its chairman, Chung Mong-koo, departed Korea yesterday to visit a vehicle-manufacturing plants near Chennai, India. The visit will be his third to India in a year, following February and September trips last year.
Although Mr. Chung was sentenced to three years in prison earlier this month for embezzling company funds, his overseas trip became possible after garnering court approval. He appealed his conviction and remains on bail.
Hyundai said Mr. Chung will spend a week looking around the first factory near Chennai, which is capable of producing 300,000 cars a year, and the second plant to be completed late this year. The second factory is expected to have annual production capacity of 600,000 units. There he will advise workers on car-making technology and quality. The chairman also will be checking the site for building a research and development center, according to Hyundai.
His recent visits to India, according to critics, largely due to the significance of the market.
With the Indian economy growing rapidly, Hyundai aims to nurture its factories there into a global hub of smaller cars. Last year Hyundai sold 185,641 units in India to become the country’s No. 2 carmaker after Maruti Udyog. The top automaker of Korea launched operations in India in 1998.
“India is the latest battleground among international auto producers, with many of them scheduled to make inroads,” said a Hyundai executive.
Japanese carmakers, including Toyota and Honda, have recently been moving to add production facilities in the fledgling market to raise shares.
Ford and General Motors of the United States are reportedly seeking to supply more cars to India.
Amid recent degrading profits from the soaring won’s value against key currencies, Mr. Chung earlier this year suggested a catchphrase for this year ― stabilizing global management.
He is expected to attend a celebration of the completion of a Slovak plant for Kia Motors, a subsidiary of the automotive group, and a groundbreaking ceremony for Hyundai Motor’s Czech plant in April.

By Seo Ji-eun Staff Writer [spring@joongang.co.kr]