Chung Mong-koo

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Chung Mong-koo (Template:Korean; born 19 March 1938, in Kangwon Province) is a South Korean business magnate. He is the honorary chairman and former CEO of Hyundai Motor Group, Korea's second largest chaebol that manages 54 subsidiaries including Hyundai Motor, Kia Motors, and Hyundai Steel. He started his career in 1970, joining the engineering & construction division of the group. Chung succeeded his father, Chung Ju-yung, the founder of the conglomerate known as the Hyundai Group. When the conglomerate split into several parts in 1999, Chung Mong-koo took over the Hyundai Motor division. He is the eldest surviving son of Chung Ju-yung's eight sons.

He is among the richest people in South Korea. In December 2024, Forbes estimated his net wealth at US$4 billion and ranked him 5th richest person in the country.<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref>

He was convicted of embezzlement and breach of fiduciary duty in February 2007,<ref name="bloomberg found guilty" /> but was given a suspended sentence and was fully pardoned by President Lee Myung-bak.<ref name="bbc" />

Education

Professional experience

He also owns INNOCEAN Worldwide, an ad & marketing agency, with his eldest daughter Chung Sung-yi.<ref>Template:Cite news</ref>

Management

Chung is described as a "vigorous septuagenarian" who comes to work at 6:30 a.m. and "personally heads monthly quality reviews with senior executives".<ref name=bloom>Template:Cite news</ref>

Although he only holds 5.2% of Hyundai Motor's stock, Chung "wields disproportionately strong control" and is able to control its board thanks to a complex corporate governance arrangements in which Hyundai Motor owns 34% of Kia, which owns 16.9% of Mobis, which in turn owns 20.8% of Hyundai Motor. This means that "because the companies essentially control each other, no outside shareholder is strong enough to name board members".<ref name=bloom/>

Controversies

2007 embezzlement conviction

In 2006, he and his family were targeted by the Seoul Supreme Prosecutor's Office as part of an investigation into embezzling 100 billion won ($106 million) from Hyundai to create slush funds to bribe officials.<ref>Template:Cite news</ref> Despite a travel ban, Chung left South Korea in April 2006. Chung was arrested on 28 April 2006 on charges related to embezzlement and other corruption.<ref>Template:Cite news</ref><ref>Template:Cite news</ref>

On 5 February 2007 he was convicted of embezzlement and breach of fiduciary duty for selling securities to his son Chung Eui-sun at below-market prices. He was sentenced to three years in prison.<ref name="bloomberg found guilty">Template:Cite news</ref> Chung remained free on bail while he appealed the sentence.<ref>Template:Cite news</ref> On September 6, 2007, Chief Judge Lee Jae-hong ruled to suspend the sentence of Chung Mong-koo (in consideration of the huge economic impact of imprisonment), ordering instead of a 3-year jail term, community service and a $1 billionTemplate:Citation needed<ref>{{#invoke:citation/CS1|citation |CitationClass=web }}</ref> donation to charity.<ref name="bbc">Template:Cite news</ref>

The trial was seen as "a victory for transparency and rule of law in South Korea",<ref>Template:Cite news</ref> but on August 15, 2008, South Korean President Lee Myung-bak granted him a special pardon to allow Chung to continue to contribute to the development of Hyundai Motor Group as well as the Korean economy.<ref>Template:Cite news</ref>

Nepotism

His only son Chung Eui-sun is his "heir apparent", despite his relatively unproven business and leadership skills. According to Bloomberg, "no one can assess how Eui Sun will perform when he becomes chairman because his father keeps him on a tight leash".<ref name=bloom/>

Furthermore, in 2011, he was accused of nepotism<ref name=bloom/> when Ozen, a bakery cafe whose advisors included his three daughters Sung-yi, Myung-yi, and Yun-yi, set up shop in company buildings.<ref>Template:Cite news</ref> Ozen eventually closed in 2012.<ref>Template:Cite news</ref>

Awards and honors

Family

Template:Chung family tree

See also

References

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Template:Hyundai Motor Group Template:Hyundai

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