Hyundai Motor chairman all smiles over stellar biz performance

At a welcoming dinner for Georgia Gov. Nathan Deal at the Seoul Grand Hyatt last week, Hyundai-Kia Automotive Group Chairman Chung Mong-koo said, “I feel like driving on a wide open road at last. I feel comfortable.”

Deal visited Seoul to discuss mutual cooperation for the Korean company, which operates in the U.S. state including Kia Motors` production facility. After having shunned media contact for years, Chung willingly approached reporters to answer their questions.

Chung is full of smiles these days for good reason. The operating profit of the automotive group jumped to 9.17 trillion won (8.13 U.S. billion dollars) in this year’s first half, topping Samsung Group’s 8.1 trillion won (7.2 billion dollars) based on the operation profit of Kosdaq-listed affiliates.

The sharp growth in the car business supported Hyundai`s high earnings. While Hyundai Group had previously surpassed Samsung under the late Hyundai founder Chung Ju-yung, this is the first time for Hyundai to beat Samsung under Chung Mong-koo.

The automotive group has also expanded its business scope this year by acquiring Hyundai Engineering & Construction and Green Cross Life Insurance. While automobiles were the sole business unit in 2000, Hyundai has now added construction, steel and finance.

With the automotive group speeding up its plan to reclaim the glory days that it enjoyed under its late founder, industry sources are keen to see if Hyundai can finally bring peace to the Hyundai family and replace Samsung as Korea`s top company.

○ Reclaiming lost glory

Since the family feud over control of Hyundai Group emerged in 2000, Chung Mong-koo had spun out from the group just with 10 car-related affiliates including Hyundai Motor and Kia Motors. Speculation mounted that he was kicked out from business.

His younger brother Mong-hun took control of the group, taking 26 affiliates including the construction, electronics, merchant marine and financial units. Many believed he would carry on his father’s achievements.

Over the course of 10 years, however, Chung Mong-koo, the older brother, has built Hyundai-Kia Automotive Group into one of the world’s top five carmakers. He also created a vertical business structure for automobiles (Hyundai Motor and Kia Motors), automotive parts (Hyundai Mobis) and steel (Hyundai Steel). The steel business is what his father had long dreamed of.

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