Hyundai Automotive Chairman Moves to Consolidate Family Control of Group

It is thought that Hyundai Motor Group chairman Chung Mun Koo will promote his son, Chung Eui-sun, to head the auto parts subsidiary Hyundai Mobis.

Last week, Chung Eui-sun was appointed one of the three presidents of affiliate Kia Motors Corp.

For the past two years, the younger Chung has been the senior executive vice president of both Kia and Hyundai Mobis Co.

Interestingly, Hyundai Mobis is the holding company of Hyundai Motor with a 14.6 percent stake. In turn, Chairman Chung holds about 8 percent of Hyundai Mobis.

In addition, Chung Eui-sun is the main shareholder of Hyundai's three unlisted partner companies, owning 25 percent of auto plant builder Amco Corp., 34 percent of logistics firm Glovis Co. and 30 percent of car electronics maker Bontec.

Chung Eui-sun has also acquired nearly 1 percent of Kia Motors.

As I noted last week, this consolidation of ownership is quite common among the founding families of Korea's conglomerates. Similar strategies exist with Lee family and Samsung and the Koo family and LG.

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