With Hyundai Motor Group Chairman Chung Mong-koo stepping down as an unregistered executive for the first time in 22 years, a new wave of change is expected at Hyundai Motor Group. If the head of the Finance and Economy Business Department is appointed as a new in-house director and future mobility is added to the business purpose within the company, it will accelerate its transition to 'smart mobility solution company' that is envisioned by Chung Eui-sun, senior vice president of Hyundai Motor Group.

With Chung stepping down as an in-house director, the chairman of Hyundai Motor's board of directors will also be laid down. The focus is on whether Chung will also take over as chairman of Hyundai Motor's board of directors.

The chairman has no real power other than the power to convene a board meeting. However, if Chung serves as chairman of the board of directors, it could have a symbolic effect that he is one step closer to full management succession. Industry sources say that it is natural for Hyundai Motor Group's affiliates to have Chung, who became Hyundai Motor's CEO last year, as the CEO usually chairs the board. However, some observers say that Hyundai Motor Group, which has recently emphasized shareholder-friendly management and the independence and professionalism of its board of directors, could drastically separate its chairman and CEO.

Hyundai Motor's board of directors has decided to introduce a proposal to appoint Kim Sang-hyun, head of the Financial Services Commission, as a new in-house (registered) director at a regular shareholders' meeting to be held on March 19. If the proposal is passed, Hyundai Motor's in-house directors will be composed of Chung, Lee Won-hee, Ha Eon-tae, Albert Beierman, and Kim Sang-hyun. While working at Hyundai Motor's finance headquarters for a long time, Kim is regarded as a person who has accumulated various experiences and highly specialized expertise at home and abroad and has contributed to improving corporate value. Outside directors will continue to form the same structure as before if Choi Eun-soo, a consultant for continental Australia, is confirmed to be reelected.

Currently, Hyundai Motor Group has appointed CFOs as registered directors except Hyundai Motor and Hyundai B&G Steel. The move is also an expression of external will to boost profitability as it promised investors by making achievements in future businesses. Hyundai Motor unveiled its '2025 Strategy' in November last year, which aims to increase its annual operating profit rate from 3.5 percent last year to 8 percent by 2025. At that time, Hyundai announced that it would invest 20 trillion won in future mobility projects by 2025.

To add momentum to the initiative, Hyundai plans to submit some changes to its articles of association during the shareholders` meeting.

According to the agenda, Hyundai Motor will change one of its existing business objectives, 'manufacturing and selling various vehicles and parts' to 'manufacturing and selling various vehicles and other means of transportation and such parts'. It will also add 'Vehicle charging business and other related businesses' for new business purposes. The change in the articles of association is analyzed as a move with new future mobility projects and electric vehicle charging station projects in mind.

Kia's board of directors also decided to submit a proposal to add various vehicle charging businesses, including electrified vehicles, and other related businesses, at a regular shareholders' meeting on April 24.