Hyundai
Encyclopedia
Hyundai (ˈhjʌndɛ)) is a global conglomerate
company, part of the Korean chaebol
, that was founded in South Korea
by one of the most famous businessmen in Korean history: Chung Ju-yung
. The first Hyundai company was founded in 1947 as a construction
company.
Two of the best-known Hyundai divisions are Hyundai Motor Company
, the world's fourth largest automobile manufacturer by volume as of January 2011, and Hyundai Heavy Industries
, the world's largest shipbuilder. Other companies currently or formerly controlled by members of Chung's extended family may be loosely referred to as a part of the Hyundai chaebol
.
In 1998 Hyundai bought Kia Motors
, the oldest South Korean car company which had to file for bankruptcy due to the 1997 Asian financial crisis. Kia is (as of 2011) somewhat independent of Hyundai motors, as Hyundai no longer owns an outright majority of Kia shares.
Hyundai Group underwent a massive restructuring following the 1997 East Asian financial crisis and Chung Ju-yung's death in 2001. Chung was the CEO and directly in control of the company until the end of his life. Today many companies bearing the name Hyundai are not part of or legally connected to the Hyundai Group. These companies include Hyundai Kia Automotive Group
, Hyundai Department Store Group
, Hyundai Heavy Industries Group
, and Hyundai Development
Group. However, all of the named companies are run by Chung's sons or their heirs.
Following the break-up, Hyundai Group
's business was reduced to manufacturing of elevators, container shipping services, and tourism.
If Hyundai is considered as a family business, then it remains the single largest company in South Korea and appears to wield enormous economic and political power in the country. The current president of South Korea
, Lee Myung-bak
, was a former CEO of Hyundai Engineering and Construction
.
comprises the Hyundai Kia Automotive Group
. Headquartered in Seoul
, South Korea
, Hyundai operates the world's largest integrated automobile
manufacturing facility in Ulsan
, which is capable of producing 1.6 million units annually. The company employs about 75,000 persons around the world. Hyundai vehicles are sold in 193 countries through some 6,000 dealership
s and showroom
s worldwide. In 2010, Hyundai sold over 1.7 million vehicles worldwide. Popular models include the Sonata
midsize sedan and Elantra
compact.
Over the years the conglomerate and its subsidiaries have created a variety of initiatives in the social sphere, initally in Korea and then internationally as the company expanded. The Asan Foundation, established by Chung Ju-yung
in 1977 with 50 percent of the stock of Hyundai Construction, subsidizes medical services in Korea primarily through the Asan Medical Center
and six other hospitals. The Foundation has also sponsored conferences on Eastern ethics and funded academic research into traditional Korean culture. In 1991, it established the annual Filial Piety
Award.
Not all of Hyundai's charitable activities have been voluntary. In 2007, Chung Ju-yung's son Chung Mong-koo
was convicted of embezzlement after taking money from Hyundai Motors to run slush fund
s. His initial three year jail sentence was reduced to community service and a $1 billion donation to charity. In 2008, Hyundai Motors established a committee to oversee its Corporate Social Responsibility
program. Among the program's initiatives have been the "Happy Move Global Youth Volunteers Program".
The Hyundai Motors' India Foundation (HMIF) has invested more than 20 million rupee
s in various corporate social responsibility
programmes in India. In 2011 it started the "Go Green" village adoption project in Tamil Nadu
. Its aim was to promote environmentally friendly products, increase the forest cover in Tamil Nadu, and improve living and hygiene conditions in the region's villages. A number of schools have been adopted for improvement with the HMIF donating around 450 benches to government schools and drilling 10 bore wells. It has been ranked as 43rd most trusted brand in India by The Brand Trust Report
, India study 2011.
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
company, part of the Korean chaebol
Chaebol
Chaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...
, that was founded in South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
by one of the most famous businessmen in Korean history: Chung Ju-yung
Chung Ju-yung
Chung Ju-yung was a South Korean businessman and the the founder of Hyundai Group.-Early life:Chung Ju-yung was born in Tongchon, Kangwŏn province , during a time when Korea was under Japanese rule. Born to a large impoverished family of peasants, he was the oldest out of six children...
. The first Hyundai company was founded in 1947 as a construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
company.
Hyundai Motor Company
Hyundai Motor Company is a Korean multinational automaker based in Seoul, South Korea which, along with Kia, comprises the Hyundai Kia Automotive Group, the world's fourth largest automaker as of 2009. As of 2011, it is the world's fastest growing automaker for two years running...
, the world's fourth largest automobile manufacturer by volume as of January 2011, and Hyundai Heavy Industries
Hyundai Heavy Industries
Hyundai Heavy Industries Co., Ltd. is the world's largest shipbuilding company, headquartered in Ulsan, South Korea. The company is a subsidiary of Hyundai Heavy Industries Group...
, the world's largest shipbuilder. Other companies currently or formerly controlled by members of Chung's extended family may be loosely referred to as a part of the Hyundai chaebol
Chaebol
Chaebol refers to a South Korean form of business conglomerate. They are global multinationals owning numerous international enterprises. The term is often used in a context similar to that of the English word "conglomerate"...
.
In 1998 Hyundai bought Kia Motors
Kia Motors
Kia Motors , headquartered in Seoul, is South Korea's second-largest automobile manufacturer, following the Hyundai Motor Company, with sales of over 1.4 million vehicles in 2010...
, the oldest South Korean car company which had to file for bankruptcy due to the 1997 Asian financial crisis. Kia is (as of 2011) somewhat independent of Hyundai motors, as Hyundai no longer owns an outright majority of Kia shares.
Hyundai Group underwent a massive restructuring following the 1997 East Asian financial crisis and Chung Ju-yung's death in 2001. Chung was the CEO and directly in control of the company until the end of his life. Today many companies bearing the name Hyundai are not part of or legally connected to the Hyundai Group. These companies include Hyundai Kia Automotive Group
Hyundai Kia Automotive Group
The Hyundai Kia Automotive Group is South Korea's largest automobile manufacturer, the second largest automaker in Asia after Toyota and the world's fourth largest automaker after Toyota, GM, and Volkswagen as of the end of 2010...
, Hyundai Department Store Group
Hyundai Department Store Group
Hyundai Department Store Group operates the Hyundai Department Store chain of department stores in South Korea. In addition, the group operates a range of service industry businesses...
, Hyundai Heavy Industries Group
Hyundai Heavy Industries Group
The Hyundai Heavy Industries Group refers to the group of affiliated companies interconnected by complex shareholding arrangements, with Hyundai Heavy Industries regarded as de facto representative of the Group.- Subsidiaries :* Hyundai Heavy Industries...
, and Hyundai Development
Hyundai Development
Hyundai Development is a South Korean company involved mainly in civil and architectural engineering. The company was established in 1976 as a part of Hyundai Group, but no longer is a part of it. It is headed by chairman Chung Mong Gyu, the eldest son of Chung Se Yung, co-founder of Hyundai...
Group. However, all of the named companies are run by Chung's sons or their heirs.
Following the break-up, Hyundai Group
Hyundai Group
Hyundai Group is a South Korean conglomerate founded by Chung Ju-yung. The first company in the group was founded in 1947 as a construction company. With government assistance, Chung and his family members rapidly expanded into various industries, eventually becoming South Korea's second biggest...
's business was reduced to manufacturing of elevators, container shipping services, and tourism.
If Hyundai is considered as a family business, then it remains the single largest company in South Korea and appears to wield enormous economic and political power in the country. The current president of South Korea
President of South Korea
The President of the Republic of Korea is, according to the Constitution of the Republic of Korea, chief executive of the government, commander-in-chief of the armed forces, and the head of state of the Republic of Korea...
, Lee Myung-bak
Lee Myung-bak
Lee Myung-bak is the President of South Korea. Prior to his presidency, he was the CEO of Hyundai Engineering and Construction and the mayor of Seoul. He is married to Kim Yoon-ok and has three daughters and one son. His older brother is Lee Sang-deuk, a South Korean politician. He attends the...
, was a former CEO of Hyundai Engineering and Construction
Hyundai Engineering and Construction
Hyundai Engineering and Construction Co., Ltd. is a major construction company in South Korea which has carried out projects not only in Korea but around the world. The company was founded by Chung Ju-yung in 1947 as the Hyundai Civil Works Company, and was a major component of the Hyundai Group...
.
Hyundai Automobiles
Hyundai branded vehicles are manufactured by Hyundai Motor Company, which along with KiaKia Motors
Kia Motors , headquartered in Seoul, is South Korea's second-largest automobile manufacturer, following the Hyundai Motor Company, with sales of over 1.4 million vehicles in 2010...
comprises the Hyundai Kia Automotive Group
Hyundai Kia Automotive Group
The Hyundai Kia Automotive Group is South Korea's largest automobile manufacturer, the second largest automaker in Asia after Toyota and the world's fourth largest automaker after Toyota, GM, and Volkswagen as of the end of 2010...
. Headquartered in Seoul
Seoul
Seoul , officially the Seoul Special City, is the capital and largest metropolis of South Korea. A megacity with a population of over 10 million, it is the largest city proper in the OECD developed world...
, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
, Hyundai operates the world's largest integrated automobile
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
manufacturing facility in Ulsan
Ulsan
Ulsan , officially the Ulsan Metropolitan City, is South Korea's seventh largest metropolis with a population of over 1.1 million. It is located in the south-east of the country, neighboring Busan to the south and facing Gyeongju to the north and the Sea of Japan to the east.Ulsan is the...
, which is capable of producing 1.6 million units annually. The company employs about 75,000 persons around the world. Hyundai vehicles are sold in 193 countries through some 6,000 dealership
Car dealership
A car dealership or vehicle local distribution is a business that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to do the selling...
s and showroom
Showroom
The word showroom has two distinct meanings including:-Marketing location:A showroom is a large space used to display products for sale, such as automobiles, furniture, appliances, carpet or apparel. The World's most famous locations for a showroom are the Champs Elysees in Paris or the 5th Avenue...
s worldwide. In 2010, Hyundai sold over 1.7 million vehicles worldwide. Popular models include the Sonata
Hyundai Sonata
The Hyundai Sonata is a mid-size car/full-size car manufactured and marketed globally by Hyundai Motor Company. From the sixth generation onwards, it is known as the i45 in the Australian, Singaporean and New Zealand markets...
midsize sedan and Elantra
Hyundai Elantra
Launched in 1990 , the Elantra received a mid-term facelift in 1993.The Elantra was powered by a Mitsubishi-designed 1.6 L straight-4 This DOHC 16-valve 1.6 L unit produced 113 hp at 6000 rpm and could push the Elantra to 60 mph in 9.5 seconds...
compact.
Civil engagement
Chung Ju-yung
Chung Ju-yung was a South Korean businessman and the the founder of Hyundai Group.-Early life:Chung Ju-yung was born in Tongchon, Kangwŏn province , during a time when Korea was under Japanese rule. Born to a large impoverished family of peasants, he was the oldest out of six children...
in 1977 with 50 percent of the stock of Hyundai Construction, subsidizes medical services in Korea primarily through the Asan Medical Center
Asan Medical Center
Asan Medical Center is the parent of seven hospitals which are part of the Asan Foundation established in 1977 and which has non-profit operations in areas including healthcare, social work, scholarship, and R&D support....
and six other hospitals. The Foundation has also sponsored conferences on Eastern ethics and funded academic research into traditional Korean culture. In 1991, it established the annual Filial Piety
Filial piety
In Confucian ideals, filial piety is one of the virtues to be held above all else: a respect for the parents and ancestors. The Confucian classic Xiao Jing or Classic of Xiào, thought to be written around 470 BCE, has historically been the authoritative source on the Confucian tenet of xiào /...
Award.
Not all of Hyundai's charitable activities have been voluntary. In 2007, Chung Ju-yung's son Chung Mong-koo
Chung Mong-koo
Chung Mong Koo is the chairman of Hyundai Motor Group, the largest carmaker in South Korea. The Hyundai Motor Group is consist of 42 subsidiaries and it is second largest Chaebol in South Korea...
was convicted of embezzlement after taking money from Hyundai Motors to run slush fund
Slush fund
A slush fund, colloquially, is an auxiliary monetary account or a reserve fund. However, in the context of corrupt dealings, such as those by governments or large corporations, a slush fund can have particular connotations of illegality, illegitimacy, or secrecy in regard to the use of this money...
s. His initial three year jail sentence was reduced to community service and a $1 billion donation to charity. In 2008, Hyundai Motors established a committee to oversee its Corporate Social Responsibility
Corporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
program. Among the program's initiatives have been the "Happy Move Global Youth Volunteers Program".
The Hyundai Motors' India Foundation (HMIF) has invested more than 20 million rupee
Rupee
The rupee is the common name for the monetary unit of account in India, Sri Lanka, Nepal, Pakistan, Mauritius, Seychelles, Maldives, and formerly in Burma, and Afghanistan. Historically, the first currency called "rupee" was introduced in the 16th century...
s in various corporate social responsibility
Corporate social responsibility
Corporate social responsibility is a form of corporate self-regulation integrated into a business model...
programmes in India. In 2011 it started the "Go Green" village adoption project in Tamil Nadu
Tamil Nadu
Tamil Nadu is one of the 28 states of India. Its capital and largest city is Chennai. Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh...
. Its aim was to promote environmentally friendly products, increase the forest cover in Tamil Nadu, and improve living and hygiene conditions in the region's villages. A number of schools have been adopted for improvement with the HMIF donating around 450 benches to government schools and drilling 10 bore wells. It has been ranked as 43rd most trusted brand in India by The Brand Trust Report
The Brand Trust Report
The Brand Trust Report, India Study, 2011 is published by Trust Research Advisory . The book is a result of a syndicated primary research on Brand Trust that generated 10,00,000 data points and 16,000 unique brands from over 10,000 hours of fieldwork conducted in 9 cities TRA’s study partners in...
, India study 2011.