Chairman of Hyundai Motor not reappointed

Chung Mong-koo

Hyundai Motor Group Chairman Chung Mong-koo is stepping down as chairman of the board of Hyundai Motor next month but will continue as head of the group, the company said Wednesday.

According to a regulatory filing Wednesday, Hyundai Motor’s board voted not to reappoint Chung as a board member. The company’s shareholder meeting is slated for March 19. The empty board seat will be filled by Kim Sang-hyun, head of finance and accounting at Hyundai Motor.

“To strengthen the board’s decision-making ability for improved profitability following large-scale investment plans, the board decided to appoint [Kim] as a new board member,” a Hyundai Motor spokesperson said, adding that Kim will be able to offer financial insights for the company’s key decisions.

Hyundai Motor announced earlier that it will invest around 20 trillion won ($16.8 billion) through 2025 to transition itself from a vehicle manufacturer to mobility solutions provider.

Chung’s directorship will expire on March 16, but he will maintain his board seat at Hyundai Mobis and remain as an executive without a board seat at Hyundai Motor, the official said.

Chung, born in 1938, became the board chairman for Hyundai Motor and chairman of Hyundai Motor Group in March 1999 and spearheaded the conglomerate’s overseas growth. He directed the group’s acquisition of Kia Motors in the 1990s during the Asian financial crisis.

Earlier this month, the chairman became the first Korean to be inducted into the Automotive Hall of Fame.

After Euisun Chung, his son, started to up his profile in 2018, Chung Mong-koo did not appear at any of the regular Hyundai Motor shareholder meetings last year.

Hyundai Motor emphasized that Chung Mong-koo will still work as the group chairman even though he will no longer serve as a board member of Hyundai Motor.

According to a spokesperson, no decision has been made yet about who will become the new chairman of Hyundai Motor. The spokesperson also denied local press speculation that it has already been decided to appoint Euisun Chung the chairman of the company.

BY KO JUN-TAE [ko.juntae@joongang.co.kr]