|Hyundai Capital Services Vice Chairman Chung Tae-young (Hyundai Capital Services)|
Chung will step down as chief executive officer and executive board member of the auto financing firm on Aug. 30, 18 years after he was promoted to the position in 2003.
The brother-in-law of Hyundai Motor Group Chairman Chung Euisun was set to serve a three-year term as Hyundai Capital chief ending in 2024.
Vice Chairman Chung will remain in the top posts of Hyundai Motor Group’s other financial services affiliates -- consumer financing firm Hyundai Card and corporate financing firm Hyundai Commercial -- according to the companies.
Following the retirement announcement, incumbent co-CEO Mok Jin-won will serve as a standalone leader of the auto financing company for the time being.
Chung has chaired Hyundai Capital and Hyundai Card since 2003. He established Hyundai Commercial in 2007 and has led the company since then.
Earlier this year, three of Hyundai Motor’s financial arms named new co-CEOs, including Mok, to pair with Chung.
Hyundai Capital recorded 240.4 billion won ($207.9 million) in operating profit in the first half of 2021, up over 20 percent from the previous year.
This comes amid speculations that the latest move is associated with Hyundai Motor Group’s family succession plan, which could ultimately carve out financial units from the group under an envisioned holding company structure in compliance with Korea’s antitrust rules.
Of the three companies, Chung and his wife Chung Myung-yi own a combined 37.5 percent in Hyundai Commercial, alongside Hyundai Motor. The corporate lender increased its stake in Hyundai Card by 4 percentage points to 28.54 percent in August, as the shareholder group led by Hong Kong-based private equity fund Affinity Equity Partners exited from the nonbank consumer lender.
On the other hand, Hyundai Capital is now owned by Hyundai Motor Group’s carmaking affiliates Hyundai Motor and Kia, with a combined 80 percent ownership. The Chung family’s ownership in Hyundai Capital has yet to be disclosed.
A Hyundai Card spokesperson declined to comment on the implications for the group’s family succession plan.