Chung Mong-koo

{{Infobox person

| name = Chung Mong-koo

| image = Mr. Chung Mong Koo calls on the Prime Minister, Shri Narendra Modi, in Seoul, South Korea (cropped).jpg

| image_caption = Chung Mong-koo in 2015

| birth_date = {{Birth date and age|df=yes|1938|3|19}}

| birth_place = Tsūsen-gun, Korea, Empire of Japan

| alma_mater = Hanyang University (B.S.)

| occupation = Business magnate

| title = Honorary Chairman of Hyundai Motor Group

| education = Hanyang University

| spouse = Lee Jung-Hwa (Deceased)

| children = 4

| awards = Van Fleet Award (2009)

| module = {{Infobox Korean name/auto

|hangul=%정몽구

|hanja=鄭夢九

|child=yes

}}

Chung Mong-koo ({{korean|hangul=정몽구}}; 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.{{Cite web |title=Mong-Koo Chung |url=https://www.forbes.com/profile/mong-koo-chung/ |access-date=2024-12-23 |website=Forbes |language=en}}

He was convicted of embezzlement and breach of fiduciary duty in February 2007, but was given a suspended sentence and was fully pardoned by President Lee Myung-bak.

Education

Graduated, Kyungbock High School
Bachelor of Science in industrial engineering, Hanyang University

Professional experience

2020–present: Honorary Chairman of Hyundai Motor Co. & Kia Motors Corp.
2000–2020: Chairman & CEO of Hyundai Motor Co. & Kia Motors Corp.
1996–1998: Chairman of Hyundai Group
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 agency, with his eldest daughter Chung Sung-yi.{{cite news | author1=David Kiley |title= Innocean Strives to Be Known as More Than Hyundai Agency |url = https://adage.com/article/agency-news/innocean-strives-hyundai-agency/227144 |work= AdAge |date= April 25, 2011}}

=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".{{cite news|author1=John Lippert|author2=Alan Ohnsman| author3=Rose Kim |title= Billionaire Chung Proving Hyundai No Joke Aiming for BMW|url=https://www.bloomberg.com/news/articles/2012-03-01/billionaire-chung-proving-hyundai-luxury-no-joke-in-drive-to-top-bmw-cars |work=Bloomberg Business|date=March 1, 2012}}

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".

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.{{cite news | author=Kim Jong-moon, Chun Su-jin | title=Hyundai case widens with official's arrest | date=28 March 2006 | work=Korea JoongAng Daily | url=http://joongangdaily.joins.com/200603/27/200603272208478279900090409041.html | access-date=28 April 2006 | archive-date=4 November 2006 | archive-url=https://web.archive.org/web/20061104092957/http://joongangdaily.joins.com/200603/27/200603272208478279900090409041.html | url-status=dead }}

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.{{cite news | first=Kelly | last=Olson | title= Hyundai Chairman Chung Mong-Koo Arrested | date=28 April 2006 | agency =Associated Press | url= http://www.cnn.com/2006/WORLD/asiapcf/04/28/hyundai.probe.ap/ }}{{cite news|url = https://www.nytimes.com/2006/04/28/world/asia/28cnd-hyundai.html |title = South Korea Arrests Head of Hyundai Motor | work=The New York Times |date=28 April 2006 |author=Sang-Hun, Choe }}

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.{{cite news | url = https://www.bloomberg.com/apps/news?pid=20601080&sid=aELMtVK7UHLA |title= Hyundai Motor's Chung Found Guilty of Embezzlement |work =Bloomberg |date=5 February 2007 |author=Seonjin Cha }}

Chung remained free on bail while he appealed the sentence.{{cite news |url=http://today.reuters.com/news/articlenews.aspx?type=businessNews&storyid=2007-02-05T134525Z_01_SEO243826_RTRUKOC_0_US-HYUNDAI-CHAIRMAN.xml |title=Hyundai Motor chairman sentenced to 3 yrs in jail |work=Reuters |date=5 February 2007 |author=Cheon Jong-woo |url-status=dead |archive-url=https://web.archive.org/web/20070310064610/http://today.reuters.com/news/articlenews.aspx?type=businessNews |archive-date=10 March 2007 }}

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{{citation needed|date=February 2015}}{{Cite web |last=Jong-woo |first=Cheon |date=6 September 2007 |title=Hyundai chief given suspended sentence |url=https://www.reuters.com/article/us-hyundai-idUSSEL00010120070906 |access-date=6 September 2023 |website=REUTERS}} donation to charity.{{cite news | url=http://news.bbc.co.uk/2/hi/business/6981064.stm | title=Guilty Hyundai boss escapes jail | work=BBC News | date=6 September 2007}}

The trial was seen as "a victory for transparency and rule of law in South Korea",{{cite news|author1=Ishaan Tharoor|title=Top 10 CEO Scandals: Chung Mong Koo, Hyundai Motor|url=https://content.time.com/time/specials/packages/article/0,28804,2009445_2009447_2009523,00.html|work=Time magazine|date=August 10, 2010}} 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.{{cite news | author = Jin Hyun-joo |url = http://www.koreaherald.com/business/Detail.jsp?newsMLId=20091230000051 |title= Amnesty clears the way for Lee's comeback to Samsung top job |work=The Korea Herald | date= March 30, 2010 }}

=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 when Ozen, a bakery cafe whose advisors included his three daughters Sung-yi, Myung-yi, and Yun-yi, set up shop in company buildings.{{cite news|title=Conglomerate offspring compete in rising bakery cafe sector|url=http://english.donga.com/srv/service.php3?biid=2011110280108|work=The Dong-A Ilbo|date=November 2, 2011}} Ozen eventually closed in 2012.{{cite news|author1=Kim Su-heon|title=Big bakeries roll on despite absence of chaebol daughters|url=https://www.hani.co.kr/arti/english_edition/e_business/555634.html|work=Hankyoreh|date=October 13, 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
2004: Inchon Award
2001: Awarded Distinguished Service Citation by Detroit'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