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Euisun Chung marks fifth year as Hyundai's chief with plenty of achievements, but serious challenges ahead

Published: 13 Oct. 2025, 18:36

Euisun Chung, executive chair of Hyundai Motor Group, speaks during a media tour at the Hyundai Motor Group Metaplant America, Wednesday, March 26, in Ellabell, Georgia. [AP/YONHAP]

Hyundai Motor Group Executive Chair Euisun Chung marks his fifth year in the top role on Tuesday, having elevated the Korean auto giant to the ranks of the world’s top three carmakers while steering its transformation toward electrification and future mobility.

Chung is credited with redefining the group’s growth strategy, yet challenges remain — including high U.S. tariffs, labor risks at local plants and a wave of low-cost electric vehicles from China.

Before Chung took the helm in October 2020, Hyundai Motor Group hovered around fifth place in global car sales. In 2022, it cracked the top three for the first time and has held the position since. In the first half of 2025, the group posted over 13 trillion won ($9.11 billion) in combined operating profit, surpassing the Volkswagen Group of Germany’s 6.7 billion euros ($7.77 billion) to rank second globally.

Its quality competitiveness has also made significant strides. Hyundai has topped U.S. market researcher J.D. Power’s Initial Quality Study for two consecutive years — a noteworthy reversal from past quality concerns. The group has also garnered more than 25 global awards across major markets, boosting both its brand reputation and technological edge.

Chung has responded proactively to paradigm shifts in the auto industry by expanding the group’s business scope beyond traditional internal combustion engines into electrification, software, hydrogen, robotics and advanced air mobility. Milestones include the launch of its hydrogen brand HTWO and the acquisition of robotics firm Boston Dynamics.

“Euisun Chung abandoned the internal combustion playbook and boldly reshaped the group into a software- and electrification-driven enterprise,” said Lee Hang-ku, a researcher at the Korea Automotive Technology Institute. “Among global automakers, he has moved most swiftly to establish a framework for the mobility transition.”

Still, Chung faces significant headwinds. Chief among them is the 25 percent U.S. auto import tariff. Although Korea agreed with the United States in July to cut the tariff to 15 percent, follow-up talks have stalled. Meanwhile, Japanese and European automakers have already finalized deals to reduce their rates.

Financial data provider FnGuide projects Hyundai and Kia’s combined third-quarter operating profit this year at 5.08 trillion won — down 21.4 percent from a year ago. While total revenue is expected to rise slightly to 72.45 trillion won, analysts warn that the high tariffs will sharply erode profit margins. The tariff burden is estimated at 1.5 trillion won for Hyundai and 1.23 trillion won for Kia this quarter alone.

The Hyundai Motor Group Metaplant America (HMGMA) in Georgia [HYUNDAI MOTOR GROUP]

Hyundai’s efforts to reduce tariff exposure by investing in U.S.-based production have also faced setbacks. On Sunday, the Wall Street Journal reported that three workers have died since construction began in 2022 at the company’s electric vehicle (EV) and battery plant site in Georgia, calling the fatality rate unusually high given the project’s $7.6 billion scale. The report also noted last month’s raid by U.S. Immigration and Customs Enforcement (ICE), which detained over 300 Korean workers accused of visa violations.

Meanwhile, Chinese EV makers are mounting a major offensive. Companies like BYD, Geely and XPeng are rapidly gaining global market share with competitive battery technologies and low-cost production models. As electrification intensifies, industry analysts warn that Hyundai must strengthen not only its technical capabilities but also its brand premium and software development.

“Hyundai may be leading the global shift to electrification, but fierce competition with Chinese automakers lies ahead,” said Cho Chuel, a senior researcher at the Korea Institute for Industrial Economics and Trade. “Enhancing software and service competitiveness will be Chung’s next major challenge.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY PARK YOUNG-WOO [[email protected]]