Chung Mong-koo
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Chung Mong-koo (; born March 19, 1938, in Kangwon Province) is a South Korean business magnate. He is the honorary chairman and former CEO of
Hyundai Motor Group The Hyundai Motor Group (HMG; ; stylized as HYUNDAI) is a South Korean '' chaebol'' (loosely similar to a multinational conglomerate but without a central holding company or ownership structure) headquartered in Seoul, South Korea. The HMG a ...
, Korea's second largest chaebol that manages 54 subsidiaries including
Hyundai Motor Hyundai Motor Company, often referred to as Hyundai Motors, ( ) and commonly known as Hyundai (), is a South Korean multinational corporation, multinational Automotive industry, automotive manufacturer headquartered in Seoul, South Korea, which ...
,
Kia Motors Kia Corporation (, formerly known as Kyungsung Precision Industry (京城精密工業) and Kia Motors Corporation) is a South Korean multinational corporation, multinational Automotive industry, automobile manufacturer headquartered in Seoul, ...
, and Hyundai Steel. He started his career in 1970, joining the engineering & construction division of the group. Chung succeeded his father,
Chung Ju-yung Chung Ju-yung or Jung Joo-young (; 25 November 1915 – 21 March 2001) was a South Korean entrepreneur and the founder of Hyundai Group, Hyundai Group, one of the largest chaebols in South Korea. Raised as the eldest son of a poor Korean farme ...
, 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 ''Forbes'' () is an American business magazine founded by B. C. Forbes in 1917. It has been owned by the Hong Kong–based investment group Integrated Whale Media Investments since 2014. Its chairman and editor-in-chief is Steve Forbes. The co ...
estimated his net wealth at
US$ The United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
4 billion and ranked him 5th richest person in the country. He was convicted of
embezzlement Embezzlement (from Anglo-Norman, from Old French ''besillier'' ("to torment, etc."), of unknown origin) is a type of financial crime, usually involving theft of money from a business or employer. It often involves a trusted individual taking ...
and breach of
fiduciary duty A fiduciary is a person who holds a legal or ethical relationship of trust with one or more other parties (legal person or group of persons). Typically, a fiduciary prudently takes care of money or other assets for another person. One party, fo ...
in February 2007, but was given a
suspended sentence A suspended sentence is a sentence on conviction for a criminal offence, the serving of which the court orders to be deferred in order to allow the defendant to perform a period of probation. If the defendant does not break the law during that ...
and was fully pardoned by President
Lee Myung-bak Lee Myung-bak (; born 19 December 1941), often referred to by his initials MB, is a South Korean businessman and politician who served as the tenth president of South Korea from 2008 to 2013. Before his presidency, he was the CEO of Hyundai Engi ...
.


Education

* Graduated, Kyungbock High School *
Bachelor of Science A Bachelor of Science (BS, BSc, B.S., B.Sc., SB, or ScB; from the Latin ') is a bachelor's degree that is awarded for programs that generally last three to five years. The first university to admit a student to the degree of Bachelor of Scienc ...
in
industrial engineering Industrial engineering (IE) is concerned with the design, improvement and installation of integrated systems of people, materials, information, equipment and energy. It draws upon specialized knowledge and skill in the mathematical, physical, an ...
,
Hanyang University Hanyang University (HYU, ) is a Private university, private research university in Seoul and Ansan (ERICA campus), South Korea. ''Hanyang'' () derives from the Names of Seoul, former name of the capital Seoul used during the Joseon period. The u ...


Professional experience

* 2020–present: Honorary Chairman of
Hyundai Motor Hyundai Motor Company, often referred to as Hyundai Motors, ( ) and commonly known as Hyundai (), is a South Korean multinational corporation, multinational Automotive industry, automotive manufacturer headquartered in Seoul, South Korea, which ...
Co. &
Kia Motors Kia Corporation (, formerly known as Kyungsung Precision Industry (京城精密工業) and Kia Motors Corporation) is a South Korean multinational corporation, multinational Automotive industry, automobile manufacturer headquartered in Seoul, ...
Corp. * 2000–2020: Chairman & CEO of
Hyundai Motor Hyundai Motor Company, often referred to as Hyundai Motors, ( ) and commonly known as Hyundai (), is a South Korean multinational corporation, multinational Automotive industry, automotive manufacturer headquartered in Seoul, South Korea, which ...
Co. &
Kia Motors Kia Corporation (, formerly known as Kyungsung Precision Industry (京城精密工業) and Kia Motors Corporation) is a South Korean multinational corporation, multinational Automotive industry, automobile manufacturer headquartered in Seoul, ...
Corp. * 1996–1998: Chairman of
Hyundai Group Hyundai Group (; ) is a South Korean conglomerate founded by Chung Ju-yung. The group was founded in 1947 Hyundai Engineering & Construction, as a construction company. With government assistance, Chung and his family members rapidly expanded ...
* 1987–1998: CEO, Hyundai Motor Service * 1986: CEO, Incheon Iron & Steel * 1981: CEO, Hyundai Pipe * 1977: CEO, Hyundai Precision & Industry * 1970: started his career by joining Hyundai Engineering & Construction He also owns INNOCEAN Worldwide, an ad &
marketing Marketing is the act of acquiring, satisfying and retaining customers. It is one of the primary components of Business administration, business management and commerce. Marketing is usually conducted by the seller, typically a retailer or ma ...
agency, with his eldest daughter Chung Sung-yi.


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". 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 Corporate governance refers to the mechanisms, processes, practices, and relations by which corporations are controlled and operated by their boards of directors, managers, shareholders, and stakeholders. Definitions "Corporate governance" may ...
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".


Controversies


2007 embezzlement conviction

In 2006, he and his family were targeted by the
Seoul Seoul, officially Seoul Special Metropolitan City, is the capital city, capital and largest city of South Korea. The broader Seoul Metropolitan Area, encompassing Seoul, Gyeonggi Province and Incheon, emerged as the world's List of cities b ...
Supreme Prosecutor's Office as part of an investigation into embezzling 100 billion won ($106 million) from Hyundai to create
slush fund A slush fund is a fund or account used for miscellaneous income and expenses, particularly when these are corrupt or illegal. Such funds may be kept hidden and maintained separately from money that is used for legitimate purposes. Slush funds m ...
s to bribe officials. 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. 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. Chung remained free on bail while he appealed the sentence. 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 billion donation to charity. The trial was seen as "a victory for transparency and
rule of law The essence of the rule of law is that all people and institutions within a Body politic, political body are subject to the same laws. This concept is sometimes stated simply as "no one is above the law" or "all are equal before the law". Acco ...
in South Korea", but on August 15, 2008, South Korean President
Lee Myung-bak Lee Myung-bak (; born 19 December 1941), often referred to by his initials MB, is a South Korean businessman and politician who served as the tenth president of South Korea from 2008 to 2013. Before his presidency, he was the CEO of Hyundai Engi ...
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.


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". Furthermore, in 2011, he was accused of
nepotism Nepotism is the act of granting an In-group favoritism, advantage, privilege, or position to Kinship, relatives in an occupation or field. These fields can include business, politics, academia, entertainment, sports, religion or health care. In ...
when Ozen, a bakery cafe whose advisors included his three daughters Sung-yi, Myung-yi, and Yun-yi, set up shop in company buildings. Ozen eventually closed in 2012.


Awards and honors

* 2020: Automotive Hall of Fame * 2009: James A. Van Fleet Award, The Korea Society * 2008–present: Honorary Chairman of the Organizing Committee for the Expo 2012 in
Yeosu Yeosu, formerly romanized as Yosu, is a coastal city located on the southern shore of South Korea. With a population of 268,823, Yeosu is the second largest city in South Jeolla Province. In 1998, the Old Yeosu City, Yeocheon City and Yeocheon C ...
* 2004: Inchon Award * 2001: Awarded Distinguished Service Citation by
Detroit Detroit ( , ) is the List of municipalities in Michigan, most populous city in the U.S. state of Michigan. It is situated on the bank of the Detroit River across from Windsor, Ontario. It had a population of 639,111 at the 2020 United State ...
's Automotive Hall of Fame * 1997–present: Honorary Vice President of World Archery Federation * 1986–1997: Chairman of Asia Archery Association * 1985–1997: Chairman of Korea Archery Association


Family


See also

* Automotive industry in South Korea


References


External links

* {{DEFAULTSORT:Chung, Mong-koo 1938 births Businesspeople from Seoul Living people South Korean businesspeople South Korean chairpersons of corporations South Korean billionaires Hyundai Motor Group Hyundai people Kyungbock High School alumni South Korean fraudsters People convicted of embezzlement Hanyang University alumni Recipients of South Korean presidential pardons Chung family