Hyundai Motor Group chairman Chung Mong-koo will not seek a new term as in-house director of the group’s steelmaking unit Hyundai Steel in a move to put more resources into the flagship automotive business, industry sources said Monday.
He also intends to make room for his son Eui-sun, the group’s vice chairman and one of the four in-house directors at Hyundai Steel since 2012, according to an industry source.
“The son is facing urgent issues like paying back the debt related to furnace construction and strengthening safety at the plants. His leadership will be tested as well,” said another industry source.
At a planned shareholders’ meeting on March 14, Hyundai Steel will discuss appointing the company’s chief financial officer Kang Hak-seo as a new in-house director instead of as group chairman, the three-year term for which expires next month.
“As key business projects have been completed successfully, chairman Chung will be focusing more on the group’s automotive business, which has been suffering stagnant sales more recently,” said another source.
Since he was named in-house director of Hyundai Steel in 2005, the senior Chung has shown a strong commitment to the steelmaker.
Under his strategic leadership, Hyundai Steel completed its third blast furnace at its Dangjin plant in South Chungcheong Province in September, while the company was recently merged with the cold-rolled steel sheet division of Hyundai Hysco, another steelmaking affiliate.
Currently, the Hyundai chairman is also registered as an in-house director at five of the group’s five affiliates. Hyundai Motor, Hyundai Mobis, Hyundai Engineering & Construction, Hyundai Powertec and Hyundai NGV.
On Feb. 20, Hyundai Motor announced the reappointment of the group chairman as an in-house director.
By Lee Ji-yoon (email@example.com)