Hyundai E&C to prioritize young leadership in year-end reshuffle

The view of the Hyundai E&C headquarters. (Hyundai E&C)

South Korea’s Hyundai Motor Group is set to make leadership changes within its key affiliates, beginning with the replacement of Hyundai E&C Co. CEO Yoon Young-joon.

According to industry sources on Wednesday, Yoon will step down, making way for Lee Han-woo, the current head of Hyundai E&C’s housing division.

Lee’s expected promotion to vice president would make him the first CEO born in the 1970s in the company’s history.

Hyundai Motor Group has named Lee, a 1970-born Seoul National University architecture graduate, as the upcoming CEO of Hyundai E&C.

Having spent over 30 years with the company, Lee is one of the youngest executives at the senior level. This succession marks a stark contrast from Yoon, born in 1957, and reflects Hyundai’s drive toward rejuvenating leadership.

Under Yoon’s tenure, Hyundai E&C secured major international contracts, including a billion-dollar power transmission project in Saudi Arabia and a $15 billion nuclear plant project in Bulgaria, achieving 76 percent of this year’s order target of 29 trillion won by the end of the third quarter.

However, the company has also faced substantial domestic challenges due to construction and real estate due to a market slowdown and project financing (PF) crises.

Escalating construction and raw material costs led to a 53 percent drop in third-quarter operating profit compared to last year, with a cumulative 20 percent decline on-year to 512.5 billion won for the first three quarters. Yoon’s departure comes as he completes his three-year term amid these financial pressures.

An industry insider said that Hyundai E&C has traditionally appointed CEOs at the president level, but this change to promote an executive vice president aims to inject fresh momentum into the organization.

Hyundai Engineering Co., another construction affiliate under Hyundai Motor Group, is expected to name a new CEO following the end of CEO Hong Hyeon-sung’s three-year term. Speculation suggests that Joo Woo-jeong, currently Kia’s finance chief, is a likely candidate.

Changes are also on the horizon for Hyundai Motor Group’s automotive affiliates.

Hyundai Transys, led by CEO Yeo Su-dong since 2019, may also see a new leader through an internal promotion.

Hyundai Transys, which supplies transmissions and seats for Hyundai’s vehicles, recorded an operating profit of 117 billion won last year, translating to a modest 1 percent operating margin.

The company has faced increased pressure this year due to a recent month-long strike by the Hyundai Transys labor union, disrupting Hyundai’s vehicle production.

The union also held a placard protest outside the residence of Hyundai Motor Group Chairman Euisun Chung on December 12, even after the union’s strike ended.