Chung Mong-koo

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This is a Korean name; the family name is Chung.
Chung Mong-Koo
File:Chung Mong-Koo.jpg
Born (1938-03-19) 19 March 1938 (age 86)
Tongchon County, Gangwon Province, South Korea
Education Hanyang University
Occupation Chairman of Hyundai Motor Group
Net worth $6.8 billion (2014)[1]
Spouse(s) Lee Jung-Hwa (Deceased)
Children 4
Awards Van Fleet Award (2009)
Chung Mong-koo
Hangul 정몽구
Hanja 鄭夢九
Revised Romanization Jeong Monggu
McCune–Reischauer Chŏng Mongku

Chung Mong-koo (born March 19, 1938, in Gangwon Province) is the chairman of Hyundai Motor Group, the largest carmaker in South Korea. The Hyundai Motor Group consists of 42 subsidiaries and is the second largest Chaebol in South Korea. Chung succeeded his father, Chung Ju-yung, founder of what would become the Hyundai Conglomerate. When the conglomerate split into several parts in 1999, Chung Mong-koo took over the Hyundai Motor business. He is the eldest surviving son of Chung Ju-yung's eight sons.

He was convicted of embezzlement and breach of fiduciary duty in February 2007,[2] but was given a suspended sentence and was fully pardoned by President Lee Myung-bak.[3]

As of March 2014, his net worth was $6.8 billion according to Forbes.[1]

Education

Professional experience

He also owns Innocean, a marketing agency, with his eldest daughter Chung Sung-yi.[4]

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".[5]

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".[5]

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.[6] 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.[7][8]

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.[2] Chung remained free on bail while he appealed the sentence.[9] 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] donation to charity.[3]

The trial was seen as "a victory for transparency and rule of law in South Korea",[10] 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.[11]

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".[5]

Furthermore, in 2011, he was accused of nepotism[5] when Ozen, a bakery cafe whose advisors included his three daughters Sung-yi, Myung-yi, and Yun-yi, set up shop in company buildings.[12] Ozen eventually closed in 2012.[13]

Awards and honors

References

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See also

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