ID :
27738
Fri, 10/31/2008 - 14:32
Auther :
Shortlink :
http://m.oananews.org//node/27738
The shortlink copeid
Chairman's son may return to Hyundai Motor
SEOUL, Oct. 31 (Yonhap) -- The only son of Hyundai Motor Co. Chairman Chung Mong-koo is expected to return to the nation's largest automaker in a move that will potentially cement his status as the heir apparent to his father's firm, company officials said Friday.
Chung Eui-sun, 37, stepped down as a co-chief executive officer at Kia Motors
Corp., a unit of Hyundai, in March this year as Kia struggled with mounting
losses amid dwindling sales.
Despite the demotion, the junior Chung remains a board member at Kia and serves
as president in charge of overseas operations.
Speculation about the junior Chung's return to Hyundai has been running rampant
in recent weeks amid frequent management shakeups at the automaker's headquarters
in Seoul. Last month, Hyundai Motor Vice Chairman Kim Dong-jin was reassigned to
the company's autoparts unit, Hyundai Mobis Co., and Vice Chairman Kim Yong-moon
moved to another affiliate on Oct. 6.
Some officials at Hyundai believe it might be the right time for the 69-year-old
chairman to prepare to pass control of the family-run automotive conglomerate to
his son.
"I think it's time for President Chung to return to Hyundai Motor from Kia Motors
because he proved his competence of management as a president of overseas
operations," said an official at Hyundai.
For the third-quarter of this year, Kia narrowed its net loss by more than half
on robust sales of small cars. Sales rose 4.9 percent to 3.4 trillion won (US$2.7
billion).
Earlier in the day, a local daily, JoongAng Ilbo, reported the junior Chung will
be promoted to a vice chairman of Hyundai Motor. The company denied the report.
The report is "groundless," Hyundai said in a brief statement.
"At this point, the likelihood of President Chung's promotion to a vice chairman
from a president is low," said another official at Hyundai.
Promoting the junior Chung to vice chairmanship could potentially strike a nerve.
Hyundai has been under pressure from critics who accuse owners of
family-controlled business conglomerates of trying to pass managing control to
their next generation.
Hyundai is also still reeling from a slush-fund scandal. The senior Chung was
given a suspended jail term for embezzling about 70 billion won in that incident.
The junior Chung, a business graduate of Korea University and who received an MBA
degree at the University of San Francisco, started his career as a senior
executive at Hyundai in 1999.
(END)
Chung Eui-sun, 37, stepped down as a co-chief executive officer at Kia Motors
Corp., a unit of Hyundai, in March this year as Kia struggled with mounting
losses amid dwindling sales.
Despite the demotion, the junior Chung remains a board member at Kia and serves
as president in charge of overseas operations.
Speculation about the junior Chung's return to Hyundai has been running rampant
in recent weeks amid frequent management shakeups at the automaker's headquarters
in Seoul. Last month, Hyundai Motor Vice Chairman Kim Dong-jin was reassigned to
the company's autoparts unit, Hyundai Mobis Co., and Vice Chairman Kim Yong-moon
moved to another affiliate on Oct. 6.
Some officials at Hyundai believe it might be the right time for the 69-year-old
chairman to prepare to pass control of the family-run automotive conglomerate to
his son.
"I think it's time for President Chung to return to Hyundai Motor from Kia Motors
because he proved his competence of management as a president of overseas
operations," said an official at Hyundai.
For the third-quarter of this year, Kia narrowed its net loss by more than half
on robust sales of small cars. Sales rose 4.9 percent to 3.4 trillion won (US$2.7
billion).
Earlier in the day, a local daily, JoongAng Ilbo, reported the junior Chung will
be promoted to a vice chairman of Hyundai Motor. The company denied the report.
The report is "groundless," Hyundai said in a brief statement.
"At this point, the likelihood of President Chung's promotion to a vice chairman
from a president is low," said another official at Hyundai.
Promoting the junior Chung to vice chairmanship could potentially strike a nerve.
Hyundai has been under pressure from critics who accuse owners of
family-controlled business conglomerates of trying to pass managing control to
their next generation.
Hyundai is also still reeling from a slush-fund scandal. The senior Chung was
given a suspended jail term for embezzling about 70 billion won in that incident.
The junior Chung, a business graduate of Korea University and who received an MBA
degree at the University of San Francisco, started his career as a senior
executive at Hyundai in 1999.
(END)
