Chung Eui-sun, Chairman of Hyundai Motor Group, marks his 5th anniversary in office on the 14th. While he is credited with elevating Hyundai Motor Group to a global 'Big 3' automaker and leading in future mobility trends such as electrification, he faces significant challenges. The company is confronted with a 25% high tariff in its largest market, the United States, and intensifying competition with new Chinese companies.

Since Chung took office on October 14, 2020, Hyundai Motor Group's status has rapidly risen. Previously ranked around 5th, Hyundai Motor Group climbed to 3rd in global sales for the first time in 2022 and has maintained its 'Top 3' position.

This year, qualitative growth was also achieved. In the first half (January to June), the combined operating profit reached KRW 13.086 trillion, surpassing Germany's Volkswagen Group (KRW 10.86 trillion) to rank 2nd for the first time on a half-year basis. Based on these achievements, the U.S. automotive magazine Automotive News selected Chairman Chung, along with his grandfather Chung Ju-yung, the founder, and his father Chung Mong-koo, Honorary Chairman, as figures who have significantly influenced the automotive industry in its 100th anniversary special edition in August.

Quality competitiveness has also greatly improved. Hyundai Motor Group ranked 1st for two consecutive years in the J.D. Power Initial Quality Study in the United States. Considering the harsh criticism of being a 'refrigerator on wheels' in the early 2000s, this is a remarkable achievement. This year, it received more than 25 global awards in major markets, receiving top-level evaluations in all areas. Chairman Chung is continuing bold investments across all future mobility sectors beyond traditional automotive business. He has aggressively invested in electrification, software-defined vehicles (SDVs), hydrogen, robotics, and advanced air mobility (AAM), expanding the business scope.

However, the problem is that the global market situation is worsening. The 25% automotive tariff imposed in the U.S. since April this year is the biggest hurdle. Competing countries like Japan and Europe have successfully negotiated to lower the tariff to 15%, but Hyundai Motor Group is still burdened with 25% due to delayed follow-up negotiations.

There is also significant concern regarding the third-quarter (July to September) performance. According to the consensus of third-quarter operating profit compiled by financial information company FnGuide, the combined operating profit of Hyundai Motor and Kia is expected to be KRW 5.081 trillion, a 21.4% decline compared to the same period last year. While sales are expected to increase by 4.3% to KRW 72.4479 trillion, profitability is expected to deteriorate significantly due to the tariff burden.

Competition with new Chinese companies is also a significant burden for Hyundai Motor Group. Chinese automakers, rapidly growing based on their home market, have quickly accumulated technological capabilities in electric and autonomous vehicles, emerging as formidable competitors.

Chairman Chung is well aware of these crisis situations, referring to the current situation as a 'perfect storm' at the New Year's meeting earlier this year, stating, "We have always faced crises and overcome them excellently," and emphasizing, "Leadership like that of Admiral Yi Sun-sin is more necessary than ever."

An automotive industry official said, "It is certain that Chairman Chung has grown Hyundai Motor Group into a leading group," but added, "However, his leadership is once again being tested on how to navigate the numerous challenges ahead."

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