More Change in Hyundai-Kia Group Leadership

YI

Hyundai-Kia Automotive Group is likely to speed up the transfer of power from chairman Chung Mong-koo to his only son, Chung Eui-sun, following TuesdayÂ?s management shakeup that showed old stalwarts the door.

In the surprise change of powers, the carmaker dismissed Park Jeong-in as CEO and chairman of Hyundai Mobis, a Hyundai Motor affiliate that holds the largest stake of 14.59 percent at the carmaker.

The company said Park will continue to be part of important corporate decisions as an advisor.

The chairman has brought in new and younger faces to top management to draw up the future course of the largest automaker in South Korea.

On another level, Korean corporations are extremely hierarchical and seniority based. That mean that for promotions eventaully those at the top need to retire or step down, for the next level to move upwards.

Hyundai Mobis president Han Kyu-hwan, 55, was promoted to vice chairman and Chung Suk-soo, 52, president of Hyundai Powertech, an automatic transmission system manufacturer affiliated with Hyundai Motor, was appointed president of Hyundai Mobis.

Park, 62, has been regarded as one of the top lieutenants of Chung Mong-koo since Chung entered the auto business in the 1970s, along with former INI Steel chairman and CEO Ryu In-gyun. After Ryu stepped down from his post last year, Park was largely expected to follow in RyuÂ?s footsteps, but the timing had been kept under wraps.

This new top management heralds a new era in KoreaÂ?s second largest conglomerate with Chung Eui-sun, who is currently serving as the president of Kia Motors, at the helm.

The junior Chung, 35, came to the fore of management after he became an executive of Hyundai Motor in early 2003.

After being appointed president of Hyundai-Kia Automotive Group in February, the carmaker said Chung plans to increase his shares in Kia, arousing suspicions that the senior Chung began moving to pass the reign of Hyundai and Kia to his son.

An analyst from Hannuri Investment and Securities in Seoul said TuesdayÂ?s personnel shakeup signifies a generational shift in HyundaiÂ?s management, and the arrival of younger managers will help quicken the power transfer to the junior Chung.

Park Jeong-inÂ?s departure means chairman Chung has taken a step further to have the Chung family keep HyundaiÂ?s reins in their hands, the analyst said on condition of anonymity. It is expected that the Junior Chung may increase his clout in the course of making crucial decisions and may soon emerge as the successor to his father.

On another level, Korean corporations are extremely hierchiael and seniority based. That mean that for promotions eventaully those at the top need to retire or step down, for the next level to move upwards.