Hyundai Mobis shareholders OK heir apparent as executive director

South Korea's biggest auto parts maker and a key affiliate of Hyundai Motor Group, on Wednesday approved the reappoinment of the group's heir apparent to the company's board to push forward his future mobility initiative.

In a general meeting, Hyundai Mobis shareholders voted to accept the company's board's reappointment of Hyundai Motor Group Executive Vice Chairman Chung Euisun as executive director.  

They also approved the board's decision to extend the term of former Opel Chief Executive Karl-Thomas Neumann as an outside director by three years, he said.  

Shareholders also approved the appointment of Jang Young-woo, a former head of UBS financial firm in Seoul, as an outside director in charge of protecting shareholders' rights and interests.  

In March last year, the company invited Neumann and US financial expert Brian D. Jones to join its board following a row with US activist hedge fund Elliott Management over its dividend plans and board member appointments in 2018. Jones will serve as an outside director for the next two years.  

In January, Elliott reportedly sold all its stakes -- 2.9 percent of Hyundai Motor, 2.1 percent of Kia Motors and 2.6 percent of Hyundai Mobis -- 20 months after it purchased them for 1.05 trillion won.

In other plans to boost shareholder value, the country's biggest auto parts maker plans to buy back 330 billion won worth of treasury shares this year and cancel 62.5 billion won worth of stocks.  

Last year, Hyundai Mobis announced it will pay out dividends, buy back shares and cancel stocks that are valued at overall 2.6 trillion won for the next three years.

For 2019, its net profit jumped 22 percent on-year to 2.29 trillion won from 1.89 trillion won. It earns 90 percent of its overall auto parts sales from Hyundai Motor Co. and Kia Motors Corp. (Yonhap)