MEDIA / H-Story

– Six young heads of overseas corporations in their thirties of Hyundai Corporation have successfully cultivated global markets

Six heads of overseas subsidiaries in their thirties of Hyundai Corporation Group attended the group’s business strategy conference held in Seoul last month. (From the left) Huh Kyul (Head of Hyundai Mushrooms US), Kim Choong-Ki (Head of Smithy Mushrooms UK), Sa-Gong Hyuk (Head of Hyundai Forklifts Australia), Lee Myung-Wu (Head of Hyundai Agro Cambodia), Lee Jong-Bin (Head of Bula Park Australia), and Shin Dong-Jin (Head of Hyundai Packaging Cambodia)

 

“Whenever I leave the office after finishing my work and locking the door, I promise myself that I will fulfill my duties successfully with the mind that it’s my own business. Whenever I encounter business difficulties, I remind myself of the famous words of Hyundai Group’s founder and late Chairman Chung Ju-Yung, ‘Have you ever tried that?’”

Late last year, Sa-gong Hyuk was appointed as the head of Hyundai Forklifts Australia. He was born in 1989 (western age: 34) and joined Hyundai Corporation about 10 years ago in 2014. Regarding his career, he is expected to work as a manager in general private companies including most big trading firms. However, he was exceptionally chosen as a head of one of Hyundai Corporation’s overseas subsidiaries which is deemed to be a dream job for men in trading companies.

Mr. Sa-gong said, “Most of the partners whom I meet when implementing projects are in their fifties or older, which makes me feel a little bit uncomfortable. I have made continuous efforts to reduce the prejudice that I am too young to fully show professional expertise.”

According to Hyundai Corporation, six out of its seven overseas subsidiaries that have been set up to conduct new projects are currently headed by MZers in their thirties. They have produced noteworthy results independently in the UK, Cambodia, Australia, and the US. The young leaders are as follows: Sa-Gong Hyuk, Head of Hyundai Forklifts Australia; Kim Choong-Ki (born in 1984), Head of Smithy Mushrooms UK; Lee Myung-Wu (born in 1983), Head of Hyundai Agro Cambodia; Lee Jong-Bin (born in 1990), Head of Bula Park Australia; Shin Dong-Jin (born in 1983), Head of Hyundai Packaging Cambodia; and Huh Kyul (born in 1990), Head of Hyundai Mushrooms US.

The beginning of Hyundai Corporation Group is traced back to Hyundai Corporation founded by the late Hyundai Group Chairman Chung Ju-Yung in 1976. Hyundai Corporation Holdings has focused on cultivating global food markets because of its belief that trading businesses relying on brokerage commissions have limitations in continuous growth.

Food businesses are regarded as new projects for which global markets and local networks should be cultivated and set up from the beginning, respectively, unlike trading. Therefore, they require new innovations distinguished from those for existing trading businesses. Against this backdrop, Chairman Chung Mong-Hyuck paid keen attention to the MZ generation. He is the only son of the late Chung Shin-Yung, the fifth youngest brother of the late Chairman Chung Ju-Yung. Chairman Chung Mong-Hyuck believed that adding MZers’ creativity to the existing expertise and resources of trading companies would create limitless synergies because they are very sensitive to new business trends.

 

Lee Jong-Bin (right), Head of Bula Park Australia, and a local employee are checking mushrooms in a farm.

 

His unprecedented HR replacement initiative began when he appointed Kim Choong-Ki as the Head of a UK subsidiary in September 2019. In October of the same year, he promoted manager Shin Dong-Jin to Head of Hyundai Packaging Cambodia manufacturing corrugated cardboard and film. Chairman Chung gave them a special order to operate the subsidiaries as startups and hubs for global markets.

It has become a great success. The young heads have done a lot of legwork expanding the number of partners, so that the sales of overseas hubs have risen twofold or more. In spite of the COVID-19 lockdowns across the UK, UK subsidiary head Kim Choong-Ki has led the number of shops for TESCO, a global distribution company, to jump by 43% from 800 to 1150. Supplying mushrooms to more than 300 shops in key discount retail chains including M&S, a high-end retail chain, he has made high-quality Asian mushrooms (shiitakes, king oyster mushrooms, and oyster mushrooms) widely known across the UK. The sales of subsidiaries in Cambodia and Australia have also climbed by 100% or more.

At first, many officials were very skeptical about the effectiveness of the decision to appoint managers in their thirties as heads of overseas subsidiaries, saying “What can the rookies do?” in a sarcastic tone. However, the situation has quickly changed due to the new leaders’ passion and commitment. A company official stated, “The young leaders have achieved remarkable results within a short period of time, eliminating all the suspicions.”

 

Shin Dong-Jin, Head of Hyundai Packaging Cambodia, is checking corrugated cardboard and film in a factory.

 

Chairman Chung’s HR replacement test is still underway. Hyundai Corporation founded a subsidiary in Australia to sell forklifts manufactured by Hyundai Genuine, HD Hyundai Heavy Industries’ affiliate in construction equipment. Chairman Chung chose Sa-Gong Hyuk working for Hyundai Corporation’s construction machinery team as the head of the Australian subsidiary. He highly regarded Mr. Sa-Gong’s business literacy, passion, and English proficiency, despite his age. As a result, six out of seven overseas subsidiaries venturing into new business projects are now headed by young leaders in their thirties.

Mr. Sa-Gong is preparing to make inroads into rental segments, as well as selling forklifts, in Australia. He said, “Our competitors are working hard to offer better prices and services to their clients, which makes me feel a stronger sense of crisis and responsibility.” He also voiced his hope, saying, “My aim is to further solidify Hyundai Corporation’s position in the Australian market and to enable it to grow to become one of the top three companies in the world.”

 

March 17, 2023, The Korea Economic Daily