Chung Mong-koo

Chung Mong-koo (Korean: 정몽구; born March 19, 1938, in Kangwon Province) is a South Korean businessman. 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.

In this Korean name, the family name is Chung.
Chung Mong-koo
Chung Moon-koo in 2015
Born (1938-03-19) 19 March 1938
Tsūsen-gun, Kōgen-dō, Japanese Korea
EducationHanyang University
Alma materHanyang University (B.S.)
Occupationbusinessman
TitleHonorary Chairman of Hyundai Motor Group
SpouseLee Jung-Hwa (Deceased)
Children4
AwardsVan Fleet Award (2009)
Korean name
Hangul
정몽구
Hanja
鄭夢九
Revised RomanizationJeong Monggu
McCune–ReischauerChŏng Mongku

He was convicted of embezzlement and breach of fiduciary duty in February 2007,[1] but was given a suspended sentence and was fully pardoned by President Lee Myung-bak.[2]

Education

Professional experience

He also owns INNOCEAN Worldwide, an ad & marketing agency, with his eldest daughter Chung Sung-yi.[3]

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".[4]

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".[4]

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.[5] 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.[6][7]

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.[1] Chung remained free on bail while he appealed the sentence.[8] 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[9] donation to charity.[2]

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".[4]

Furthermore, in 2011, he was accused of nepotism[4] 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

Family
Family of Chung Mong-koo
Han Seong-sil
한성실
?		Chung Bong-sik
정봉식
?
 
YungByun Joong-seok
변중석
1921–2007		Chung Ju-yung
정주영
1915–2001		Kim Kyung-hee
김경희
1953–		Park Byeong-im
박병임
1928–2015		Chung Soon-yung
정순영
1922–2005		Park Young-ja
박영자
1936–		Chung Se-yung
정세영
1928–2005		Jo Eun-ju
조은주
1936–		Chung Sang-yung
정상영
1936–2021
(영)
[lower-alpha 1]Kim Wol-gye
김월계
1923–2003		Chung In-yung
정인영
1920–2006		Chung Hee-yung
정희영
1925–2015		Kim Young-joo
김영주
1920–2010		Jang Jeong-ja
장정자
1935–		Chung Shin-yung
정신영
1931–62
 
 
 Chung Mong-pil[lower-alpha 2]
정몽필
1934–82		Chung Chung-in (Grace)
정정인
1979–		Chung Chung-im (Elizabeth)
정정임
1981–		Chung Hyeong-suk
정형숙
1951–74		Chung Moon-sook
정문숙
1947–		Kim Yun-su
김윤수
1946–		Chung Sook-young[lower-alpha 3]
정숙영
1960–		Chung Il-kyung
정일경
1960–		Chung Mong-hyuk
정몽혁
1961–
 
MongChung Mong-koo[lower-alpha 4]
정몽구
1938–		Chung Mong-woo[lower-alpha 5]
정몽우
1945–90		Chung Mong-yoon[lower-alpha 6]
정몽윤
1955–		Chung Mong-guk[lower-alpha 7]
정몽국
1953–		Chung Mong-sun
정몽선
1954–		Kim Geun-su
김근수
1948–		Chung Mong-jin
정몽진
1960–		Chung Mong-yeol
정몽열
1964–
(몽)
[lower-alpha 8]Chung Mong-kun[lower-alpha 9]
정몽근
1942–		Chung Mong-hun[lower-alpha 10]
정몽헌
1948–2003		Chung Mong-il[lower-alpha 11]
정몽일
1959–		Chung Mong-won[lower-alpha 12]
정몽원
1955–		Chung Mong-hoon
정몽훈
1959–		Chung Chung-suk
정정숙
1962–		Chung Mong-ik
정몽익
1962–
 
 Chung Kyung-hee[lower-alpha 13]
정경희
1944–		Chung Mong-joon[lower-alpha 14]
정몽준
1951–		Chung Mong-seok
정몽석
1958–		Chung Mong-yong
정몽용
1961–		Chung Mong-gyu[lower-alpha 15]
정몽규
1962–		Chung Yoo-kyung
정유경
1970–
 
 
 
 
 Chung Ji-yi
정지이
1977–		Chung Young-yi
정영이
1984–		Chung Young-seon
정영선
1985–		Chung Hyeon-seon
정현선
1989–		Chung Mun-yi
정문이
1991–
 
 Chung Il-seon
정일선
1970–		Chung Moon-seon
정문선
1974–		Chung Dae-seon[lower-alpha 16]
정대선
1977–		Chung Chung-yi
정정이
1984–		Chung Kyung-seon
정경선
1986–
Seon
(선)Chung Ji-seon
정지선
1972–		Chung Gyo-seon
정교선
1974–		Chung Ki-seon
정기선
1982–		Chung Nam-yi
정남이
1983–		Chung Seon-yi
정선이
1986–		Chung Ye-seon
정예선
1996–
[lower-alpha 17]
 
 Chung Eun-hee
정은희
1971–		Chung Yu-hee
정유희
1973–		Chung Seong-yi[lower-alpha 18]
정성이
1962–		Chung Myeong-yi[lower-alpha 19]
정명이
1964–		Chung Yoon-yi[lower-alpha 20]
정윤이
1968–		Chung Eui-seon[lower-alpha 21]
정의선
1970–
 
 
 Seon A-yeong[lower-alpha 22]
선아영
1987–		Seon Tong-uk[lower-alpha 23]
선동욱
1989–		Sin U-jin
신우진
1993–		Sin U-hyeon
신우현
2004–
N/A
 Chung Yu-mi
정유미
1988–		Chung Yu-jin
정유진
1990–		Chung Jun[lower-alpha 24]
정준
1997–		Sin U-taek
신우택
1996–		Chung Jin-hui
정진희
1996–		Chung Chang-cheol
정장철
1998–
 
Notes
In general: marriages indicated by dashed lines, female on the left.
  1. Given name terminates in -yung (영) for males and females in this generation
  2. Married to Lee Yang-ja (이양자; 1943–90)
  3. Married to Prof. Noh Kyung-soo (노경수; 1954–)
  4. Married to Lee Jung-hwa (이정화; 1939–2009)
  5. Married to Lee Haeng-ja (이행자; 1945–)
  6. Married to Kim Hye-young (김혜영; 1961–)
  7. Married to Lee Yoon-hee (이윤희; 1954–)
  8. Given name starts with Mong- (몽) for males in this generation. Female given names often start with Chung- (정), but not always.
  9. Married to Woo Kyung-sook (우경숙; 1951–)
  10. Married to Hyun Jeong-eun (현정은; 1955–)
  11. Married to Kwon Jun-hee (권준희; 1961–)
  12. Married to Hong In-hwa (홍인화; 1957–)
  13. Married to Jung Hee-young (정희영; 1940–)
  14. Married to Kim Young-myeong (김영명; 1956–)
  15. Married to Kim Na-young (김나영)
  16. Married to news anchor Noh Hyeon-jeong (노현정, 1979–)
  17. Given name terminates in -seon (선) for males in this generation. Female given names usually terminate in -yi (이), but not always.
  18. Married to Daejeon Sun Hospital chief director Seon Du-hun (선두훈, 1957–)
  19. Married to Hyundai Card vice chairman Chung Tae-yeong (정태영, 1960–)
  20. Formerly married to Samwoo vice-chairman Sin Seong-jae (신성재, 1968–)
  21. Married to Chung Do-won's daughter Chung Ji-seon (정지선, 1970–)
  22. Married to Gil Yong-wu's son Gil Seong-Jin (길성진, 1984–)
  23. Married to Chae Hyeong-seok's daughter Chae Su-yeon (채수연, 1990–)
  24. Married to professional golfer Lydia Ko (리디아 고, 1997–)
Sources
  • 김봄내 (May 15, 2015). "[재벌가족사]정주영 현대그룹 창업주" [Chaebol Family History: Chung Ju-yung, founder of Hyundai Group]. KJtimes (in Korean).
  • 김태현 (March 23, 2015). "[단독보도] 정주영 막내딸 미국서 엄마 없이 결혼" [Exclusive: Chung Ju-yung's youngest daughter gets married without her mother in the United States]. 일요신문 (in Korean).
  • "Family Drama". Forbes. April 26, 2011.

See also

References
  1. Seonjin Cha (5 February 2007). "Hyundai Motor's Chung Found Guilty of Embezzlement". Bloomberg.
  2. "Guilty Hyundai boss escapes jail". BBC News. 6 September 2007.
  3. David Kiley (April 25, 2011). "Innocean Strives to Be Known as More Than Hyundai Agency". AdAge.
  4. John Lippert; Alan Ohnsman; Rose Kim (March 1, 2012). "Billionaire Chung Proving Hyundai No Joke Aiming for BMW". Bloomberg Business.
  5. Kim Jong-moon, Chun Su-jin (28 March 2006). "Hyundai case widens with official's arrest". JoongAng Daily. Archived from the original on 4 November 2006. Retrieved 28 April 2006.
  6. Olson, Kelly (28 April 2006). "Hyundai Chairman Chung Mong-Koo Arrested". Associated Press.
  7. Sang-Hun, Choe (28 April 2006). "South Korea Arrests Head of Hyundai Motor". New York Times.
  8. Cheon Jong-woo (5 February 2007). "Hyundai Motor chairman sentenced to 3 yrs in jail". Reuters. Archived from the original on 10 March 2007.
  9. Jong-woo, Cheon (6 September 2007). "Hyundai chief given suspended sentence". REUTERS. Retrieved 6 September 2023.
  10. Ishaan Tharoor (August 10, 2010). "Top 10 CEO Scandals: Chung Mong Koo, Hyundai Motor". Time magazine.
  11. Jin Hyun-joo (March 30, 2010). "Amnesty clears the way for Lee's comeback to Samsung top job". Korea Herald.
  12. "Conglomerate offspring compete in rising bakery cafe sector". The Dong-a Ilbo. November 2, 2011.
  13. Kim Su-heon (October 13, 2012). "Big bakeries roll on despite absence of chaebol daughters". Hankyoreh.
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