Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea’s second largest group.
SEOUL (Reuters) – Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea’s second largest group.
Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to “deteriorating global trade issues and changes in competitive dynamics in major markets,” Hyundai Motor Group said in a statement.
Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders.
“In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group’s operations, aiding and reporting to Chairman Mong-Koo Chung,” the statement said.
The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea’s trade tensions with the United States that threaten to disrupt its production plans.
“This is a good sign,” Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment.
“This will enhance transparency about who is controlling the group and who is making key strategic decisions,” she said.
