Tuesday, October 3, 2023
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Hyundai Heavy embraces 3rd generation owner family leadership

Chung Ki-sun, grandson of Hyundai Group founder Chung Ju-young, officially takes the helm of the world’s largest shipbuilding group, ushering in the new generation owner family leadership.

KSOE shareholders approved the appointment of Chung as chief executive officer of Korea Shipbuilding & Offshore Engineering Co. (KSOE), the interim shipbuilding holding company of Hyundai Heavy Industries Group (HHI Group), during a general annual meeting on Tuesday, a day before the group’s 50th anniversary, according to the company on the same day. Chung will double as CEO of Hyundai Heavy Industries Holdings (HHI Holdings) as its shareholders are expected to give a nod to his appointment at an annual meeting due to Mar. 28.

HHI Holdings shareholders will also decide on change of the corporate name into HD Hyundai to rebuild its brand identity as a tech-centered group for businesses ranging from autonomous, eco-friendly ship to hydrogen value chain for future growth.

Chung, 40, took office as the president of KSOE in October last year. He served the role as an unregistered executive but now formally joins the boardroom. HHI Group has become the latest in Hyundai empire of the Chung founding family to go under third-generation leader.

In the meantime, Hyundai Heavy Industries has faced a risk of a labor dispute or strikes this year as it has failed to gain workers’ approval for the tentatively agreed collective bargaining terms during the union vote on the same day.

About 66.76 percent of its 5,768 unionized members, or 3,851 workers disapproved the deal. Voter turnout came at 86.48 percent.

The company offered a 73,000 won ($60.17) increase in the base salary, 148 percent of base salary and normal wage for performance-based bonus compensation, 2.5 million won of incentives, and 300,000 won in welfare points.

The two parties tentatively reached an agreement about six months after the first meeting on Aug. 30 last year, but the union finally rejected the offer at the vote. The first union vote has ended with a rejection every time since 2016.

Hyundai Construction Equipment Co. and Hyundai Electric & Energy Systems Co. also failed to gain a vote of approval by 87.98 percent and 72.25 percent of their unionized workers on the same day.

KSOE shares were trading 0.77 percent higher at 91,500 won in Seoul trading at 10:36 a.m. Wednesday, HHI Holdings 0.95 percent up at 52,900 won. Hyundai Heavy Industries shares rose 0.44 percent to 114,500 won.

Source: Pulse

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