Chung Ki-sun, heir apparent and vice chairman of HD Hyundai, has been promoted to executive vice chairman, solidifying his succession at the country’s largest shipbuilding and heavy industry group, according to the company’s year-end management reshuffle.
The promotion came only a year after he was appointed vice chairman, and market watchers believe that the reshuffle is part of HD Hyundai's effort to accelerate the company's management transition to a third-generation successor.
Currently, HD Hyundai is led by Chairman Kwon Oh-gap, but Chung's recent promotion suggests that he will soon assume full control of the company, likely succeeding the current chairman.
"The position of executive vice chairman was also used by Hyundai Motor Group Executive Chair Chung Euisun before his promotion to the highest rank within the group, so the HD Hyundai heir apparent is expected to follow a similar path", an official at a major conglomerate here said.
Chung Ki-sun is widely expected to focus on finding the firm's next growth engines and driving innovation in eco-friendly and digital technologies following the promotion, the company said. He is the grandson of Hyundai Group's late founder, Chung Ju-yung.
He joined Hyundai Heavy Industries in 2013 and has since been promoted to the second-highest position at HD Hyundai over nearly a decade.
HD Hyundai is a holding firm of HD Hyundai Group that handles multiple businesses, including shipbuilding and energy.
HD Hyundai also promoted a group of new leaders at its key affiliates on the same day.
HD Hyundai Electric CEO Cho Seok was promoted to vice chairman and CEO during the latest top management reshuffle. HD Hyundai Electric specializes in the heavy electric machinery sector. Vice President Kim Young-ki is set to step into the role of president, filling the position previously held by Cho, according to HD Hyundai.
The company recognized Cho's contribution in achieving a major turnaround at HD Hyundai Electric. The firm reported more than 100 billion won ($71.12 million) in losses for two consecutive years from 2018. Under Cho's leadership, however, it was able to swing to a surplus for the next four years.
Kim Jae-eul, formerly vice president of HD Hyundai Samho, has been promoted to president of the company, which specializes in manufacturing commercial vessels.
Song Myung-joon, formerly vice president of HD Hyundai, has been appointed president of HD Hyundai Oilbank, where he will work alongside Jeong Im-ju, who has been promoted to senior executive vice president. With Song's expertise in finance, this move is seen as part of the company’s strategy to ensure stable leadership during the ongoing downturn in the petroleum industry.
"HD Hyundai has implemented a CEO-level reshuffle of top management to ensure that we can respond more proactively to the rapidly changing external environment, driven by factors such as the U.S. presidential election, the Russia-Ukraine war, and fluctuations in oil prices and exchange rates", an HD Hyundai official said.