Ranked 2nd in Operating Profit in First Half of the Year, Surpassing Volkswagen… Accelerating Future Investments in Electrification and Robotics
Must Overcome Disadvantages of Tariffs in the U.S. Compared to Japan and Europe… Competition in Electric Vehicles and Autonomous Driving is Also a Challenge
(Seoul = Yonhap News) Reporter Kim Bo-kyung – Hyundai Motor Group Chairman Chung Eui-sun will mark his 5th anniversary in office on the 14th.
Chairman Chung is credited with elevating Hyundai Motor Group into the global ‘Big 3’ automotive groups and positioning the company ahead in future mobility trends like electrification, despite being a latecomer in the automotive industry.
However, hurdles such as high tariffs in the largest market, the U.S., and competition from new Chinese companies remain challenges he must overcome.
According to the automotive industry on the 12th, Hyundai Motor, Kia (then Kia Motors), and Hyundai Mobis held an interim board meeting on October 14, 2020, to report the appointment of Chung as the new chairman, with unanimous support from each company’s board.
Thus, Chung became the de facto head of the group, just 2 years and 1 month after being promoted to senior vice-chairman in September 2018. His father, then-chairman Chung Mong-koo, was named honorary chairman.
Under Chairman Chung’s leadership, Hyundai Motor Group achieved results like expanding global sales and leading in eco-friendly technology.
In August, U.S. automotive publication Automotive News, celebrating its 100th anniversary, selected Chairman Chung, along with his grandfather, founder Chung Ju-yung, and his father, honorary chairman Chung Mong-koo, as influential figures in the automotive industry.
This publication particularly highlighted Chairman Chung’s leadership, stating, “With a global perspective and flexible thinking, he broke away from a vertical corporate culture, introduced a free and creative organizational culture, actively recruited global talent, appointed foreign CEOs, and led the launch of the Genesis brand and product innovation.”
Chairman Chung’s leadership has rapidly elevated Hyundai Motor Group’s status.
Since first achieving 3rd place in global sales in 2022, Hyundai Motor Group has maintained its ‘Top 3’ position and ranked 2nd in operating profit globally despite the tariff risks in the first half of this year.
Moreover, Hyundai Motor Group has won over 25 global awards in major automotive markets like the U.S., the UK, and Germany this year.
The group received top-level evaluations in vehicle safety, eco-friendly cars, high-performance cars, design, and brand competitiveness. Industry insiders point out that this represents a significant change in status, considering Hyundai was once mocked as producing “wheeled refrigerators and washing machines” in the early 2000s.
Chairman Chung is also actively investing in future mobility fields like electrification, software-centered vehicles (SDV), hydrogen, robotics, and advanced air mobility (AAM).
In addition, he has spearheaded social contributions, such as opening the ‘Chung Mong-koo Future Medical Center’ at Korea University to establish the country’s first privately-led full-cycle vaccine development hub.
However, the challenges ahead for Chairman Chung are significant.
From this April, the most formidable obstacle has been the 25% auto tariff imposed in the U.S., a key market.
In contrast, South Korea’s major competitors, Japan and Europe, succeeded in reducing tariffs to 15%, leaving Hyundai Motor Group to shoulder an estimated 2.5 trillion won in tariff costs for the third quarter.
This situation has drawn industry attention to how Chairman Chung will tackle these challenges.
Despite the rapid transition to electrification, Hyundai Motor Group faces the burden of having to compete with burgeoning Chinese companies, primarily in the domestic market, in the fields of electric vehicles and autonomous driving.
At this year’s New Year’s gathering, Chairman Chung compared the current crisis to a ‘perfect storm,’ saying, “We have always faced crises, overcome them excellently, and emerged stronger after them,” adding, “Admiral Yi Sun-sin’s leadership is more needed than ever now.”
An automotive industry insider stated, “Chairman Chung is undoubtedly the key figure who grew Hyundai Motor Group, a latecomer, into a leading group during an upheaval in the global automotive industry,” but added, “However, with a myriad of challenges ahead, Chairman Chung’s leadership is once again being tested.”