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Chung needs to take the lead in 'mobility industry'
Hyundai Motor Group has appointed Executive Vice Chairman Chung Euisun as its new chairman, opening the era of a new generation to lead what we now call a "mobility industry." Chung is the third-generation leader after his father Chung Mong-koo and Hyundai founder Chung Ju-yung. The new chairman, born in 1970, has been running the nation's No. 1 automotive group since September 2018 as vice chairman on behalf of his father who retreated from day-to-day management.
In March last year, Chung became the CEO of Hyundai Motor and Hyundai Mobis and chairman of the board of directors of the car manufacturer. Chung's taking the top post is drawing attention as automobiles are one of the country's mainstay industries, accounting for 12 percent of its total exports and 7 percent of entire employment. The combined share of Hyundai and its affiliate Kia Motors exceeds 80 percent of the domestic car market.
Former Chairman Chung Mong-koo, now honorary chairman, led Hyundai Motor to become the world's No. 5 carmaker based on his strenuous pursuit of "quality management" that he started in 2000. We expect the new chairman will be able to lead the company to make another leap forward as a global top-class carmaker.
In his inaugural speech, Chung cited the need for the group to brace for another challenge while preparing for a new environment and future. He emphasized efforts to open a new epoch in humanity's development of environment-friendly energy solutions for the future.
Chung has been focusing on Hyundai securing competitiveness in future cars including hydrogen- and electrically-powered vehicles, and transforming the firm into a mobility services enterprise. Recently Chung managed to forge an agreement with Hyundai's union to guarantee job security and boost the company's competitiveness.
Yet, Chung faces challenges ahead. He needs to obtain the public trust while casting off the negative image of the conglomerate involving illicit succession schemes and insider trading among affiliates. He should step up efforts to promote fair competition and social responsibility to better protect consumers and the environment.
Hyundai Motor has been endeavoring to sharpen the competitiveness of its electric and hydrogen cars. But the recent recall of electric cars has raised skepticism over the safety of such vehicles. Affected by the COVID-19 pandemic, Hyundai Motor's profit declined in the second quarter. Sluggish sales in China, the world's largest market, have been weighing on the group.
Chung owns a meager 2.35 percent stake in Hyundai and 1.74 percent in Kia. He needs to learn a lesson from the difficulties Samsung Group is facing with opaque managerial succession processes. Chung said he would "make every effort to ensure social responsibility in cooperation with diverse neighbors, subcontractors and future generations." We hope Chung will put what he has said into action.
