Hyundai Motor Group carried out personnel appointments for presidents and executives. It stands out for reorganizing leadership in the planning and coordination institutional sector that draws the blueprint for the group's overall business and investments, as well as in research and development (R&D) and manufacturing. However, selecting a new suitable leader to drive Autonomous Driving technology development, which has recently underperformed, was excluded from this round of appointments.
Hyundai Motor Group said on the 18th that it made personnel changes to accelerate its transition to a software-centered mobility corporations and strengthen competitiveness in R&D and core technologies.
Four people, including President Manfred Harrer, who was appointed the new head of R&D, as well as Jeong Jun-cheol, head of manufacturing at Hyundai Motor and Kia, Yoon Seung-gyu, head of the Kia North America regional headquarters and head of Kia America, and Lee Bo-ryong, CEO of Hyundai Steel, were appointed as heads of their respective organizations and promoted to president.
◇ Seo Gang-hyun of Hyundai Steel to oversee planning and coordination… role split with Vice Chairman Jang Jae-hoon
The most notable change in this personnel round is the appointment of Seo Gang-hyun, Hyundai Steel president and a prominent finance specialist within Hyundai Motor Group, as the new head of planning and coordination. This is seen as a move to improve profitability worsened this year by high U.S. tariff rates and to raise investment efficiency across several new businesses.
Seo graduated from Seoul National University with a degree in international economics and began his executive career in 2013 as head of management (director). He later served as head of accounting at Hyundai Motor (executive director), head of finance (senior executive director), and head of planning and finance (executive vice president).
The Hyundai Motor Group planning and coordination post is a key position that draws the blueprint for the group's overall business and oversees personnel, finance, and investments. In the era of Chairman Chung Mong-koo, former Vice Chairman Kim Yong-hwan, the group's "No. 2," and former President Kim Geol, then considered a finance expert, held this role. Since late last year, Vice Chairman Jang Jae-hoon, in charge of finished vehicles, has concurrently handled planning and coordination duties.
With finance expert Seo taking full charge of planning and coordination, Vice Chairman Jang can focus on finished vehicle operations and hydrogen mobility. In particular, the finished vehicle business faces the tasks of not only recovering performance in the United States but also competing with Chinese companies in Europe, Central and South America, and Southeast Asia.
As Seo takes on the practical command of business and investment, Hyundai Motor Group is seen as having created conditions to devote more energy to the finished vehicle business under Vice Chairman Jang.
◇ The new head of R&D is a foreigner… Hyundai Steel, building a U.S. steel mill, taps a "technology expert"
The new leader to head Hyundai Motor Group's R&D institutional sector centered on the Namyang Research Center will be President Manfred Harrer of Germany. For 25 years, he handled development of chassis and software at German automakers including Audi, BMW, and Porsche, and he joined Hyundai Motor Group in May last year.
Harrer's appointment is seen as based on the judgment that he is suited to raise vehicle technology to the level of German premium brands while effectively integrating software and mobility. He also has experience in the mobility-related IT industry, having participated at Apple in developing the Autonomous Driving electric car (Apple Car).
Hyundai Motor Group also explained the background of the appointment, saying, "Through active collaboration with all related institutional sectors, including software, this personnel move was made to boost competitiveness in the SDV (Software-Defined Vehicle) business."
With Seo moving to planning and coordination, Lee Bo-ryong, head of production, was appointed president and CEO to newly lead Hyundai Steel. While Seo is a finance expert, Lee is regarded as a technology expert seasoned on the front lines of steel production.
Born in 1965, Executive Vice President Lee graduated from Yonsei University with a degree in metallurgical engineering and joined Hyundai Hysco, then a Hyundai Motor Group affiliate manufacturing steel pipes. After Hyundai Hysco was absorbed into Hyundai Steel in 2015, he served as head of cold-rolling production, head of production technology, and head of research and development. Appointed head of the flat products division early this year, he moved to head of production in July.
Hyundai Steel, partnering with POSCO, decided to invest a total of $5.8 billion (about 8.6 trillion won) in the United States to build a new steel mill with an annual capacity of 2.7 million tons. Given Lee's broad understanding of the steel business structure, technology, production, and sales, many expect he will play a major role in building the mill in the United States and improving product technology.
It is also notable that Jeong Jun-cheol was appointed to replace the leader of the manufacturing institutional sector. He plans to shift the production structure to a software-centered model and focus on building the group's next-generation production system, including Robotics. As Jeong has overseen the Manufacturing Solutions Division, which handles finished vehicle production technology, and the Purchasing Division, which is key to profitability and supply chain management, he is seen as suited to transform the production system to boost efficiency.
◇ No successor named for former President Song Chang-hyun… Autonomous Driving concerns persist
Ahead of this Hyundai Motor Group personnel round, the finished vehicle industry focused on who would succeed former President Song Chang-hyun, who had been head of the Advanced Vehicle Platform (AVP) division and CEO of 42dot. Song resigned, taking responsibility for weak performance in technology development. However, this personnel announcement ultimately did not include the next leader to drive Autonomous Driving technology development after Song.
Recently, Hyundai Motor Group has fallen behind in the Autonomous Driving technology race. While competitors are already commercializing vehicles close to fully autonomous form, Hyundai Motor and Kia still have not secured even the fundamental technology. Tesla has already commercialized its Full Self-Driving (FSD) technology in the United States since 2020, and since last month has been selling the Model S and Model X with this feature in Korea as well.
Some say the process of selecting Song's successor could take longer than expected. They cite the difficulty of finding, at home or abroad, a candidate who can deliver short-term results in Autonomous Driving technology development, as well as internal organizational turmoil.
Hyundai Motor Group's R&D organization has lacked an overarching control tower since former President Kim Yong-hwa, then chief technology officer (CTO), stepped down in 2023. Instead, mass-production vehicle development is handled by the R&D division, while the AVP division is responsible for mobility software, including Autonomous Driving, splitting the functions in two. In addition, the U.S. subsidiary Motional is also engaged in Autonomous Driving technology development alongside the AVP division.
An official in the finished vehicle industry said, "For Hyundai Motor Group to quickly catch up with Tesla and others in Autonomous Driving, a new leader needs a structure that allows exclusive focus on technology development," adding, "In particular, a decision must first be made on how to align the roles of the AVP division and Motional."