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Hyundai Group (IPA: [hjə́ːndɛ])[1] (Korean현대그룹; Hanja現代그룹, pronounced [hjə́ːndɛ]) 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 Enterprise Group. The company spun off many of its better known businesses after the 1997 Asian financial crisis, including Hyundai Automotive Group, Hyundai Department Store Group, and Hyundai Heavy Industries Group. Chung Ju-yung was directly in control of the company until his death in 2001.

Hyundai Group
Hyundai logo (english).svg
Korean name
Hangul
현대
Hanja
現代
Revised RomanizationHyeondae
McCune–ReischauerHyŏndae

The Hyundai Group now focuses on elevators, container services, and tourism to Mount Kumgang. As of March 2007, Hyundai Engineering and Construction is the main shareholder of Hyundai Merchant Marine, which is the de facto holding company of Hyundai Group. Most companies bearing the name Hyundai are not legally connected to Hyundai Group. They include Hyundai Motor Group, Hyundai Department Store Group, Hyundai Heavy Industries Group and Hyundai Development Company. However, most of the former subsidiaries of the Hyundai conglomerate continue to be run by relatives of Chung. If these companies were considered as forming a single broad family business, then it would remain the largest company in South Korea with enormous economic and political power in the country.

Contents

EtymologyEdit

The name "Hyundai" comes from the Korean word 現代 (hanja form), which means "modernity".[2]

HistoryEdit

 
The former headquarters of Hyundai in Seoul, South Korea
  • In 1947, Hyundai Togun (Hyundai Engineering and Construction), the initial company of the Hyundai Group, was established by Chung Ju-yung.[3] Hyundai Construction began operating outside of South Korea in 1965, initially entering the markets of Guam, Thailand and Vietnam.[4] In 1950, Hyundai Togun was renamed Hyundai Construction. In 1958, Keumkang Company was established to make construction materials. In 1965, Hyundai Construction begins its first overseas venture, a highway project in Thailand.
  • In 1967, Hyundai Motors was established.[5] Hyundai Heavy Industries was founded in 1973,[6] and completed the construction of its first ships in June 1974.[7]
  • In 1975, the group begins construction on an integrated car factory and launches a new Korean vehicle.
  • In 1973, the group's shipyard is incorporated as Hyundai Shipbuilding and Heavy Industries, renamed Hyundai Heavy Industries in 1978.
  • In 1976, Hyundai Corporation is established as a trading arm. The same year, Asia Merchant Marine Co. established, later renamed Hyundai Merchant Marine.
  • In 1977, Asan Foundation was established.
  • In 1983 Hyundai entered the semiconductor industry through the establishment of Hyundai Electronics (renamed Hynix in 2001).[8]
  • In 1986, Hyundai Research Institute was established.
  • In 1986 a Hyundai-manufactured IBM PC-XT compatible called the Blue Chip PC was sold in discount and toy stores throughout the US. It was one of the earliest PC clones marketed toward consumers instead of business.[9]
  • In 1988, Asian Sangsun was established, renamed Hyundai Logistics in 1992.
  • By the mid-1990s Hyundai comprised over 60 subsidiary companies and was active in a diverse range of activities including automobile manufacturing, construction, chemicals, electronics, financial services, heavy industry and shipbuilding.[4] In the same period it had total annual revenues of around US$90 billion and over 200,000 employees.[4]
  • In December 1995, Hyundai announced a major management restructuring, affecting 404 executives.[10]
  • During 1997 Asian financial crisis, Hyundai acquired Kia Motors and LG Semi-Conductor.
  • In 1998, Korea's economic crisis forced the group to begin restructuring efforts, which include selling off subsidiaries and focusing on five core business areas. Nevertheless, Hyundai began South Korean tourism to North Korea's Kumgangsan. In 1999, Hyundai Asan was established to operating Kumgang tourism, the Kaesong Industrial Complex, and other inter-Korean work.[11]
  • In April 1999 Hyundai announced an enormous corporate restructuring, involving a two-thirds reduction of the number of business units and a plan to break up the group into five independent business groups by 2003.[12][13]
  • In 2001, the founder Chung Ju-yung died, and the Hyundai Group conglomerate continued to be dismantled.[14]
  • In 2007, Hyundai Construction Equipment India Pvt. Ltd. established in India.
  • In 2010, Hyundai Group was selected as a preferred bidder by creditors for the acquisition of Hyundai Engineering & Construction.[15]

Affiliated companiesEdit

As of February 2007, these are the affiliated companies of the Hyundai Group.[16]

  • Hyundai Construction Equipment India Pvt. Ltd.
  • Hyundai Construction Equipment Americas, Inc.
  • Hyundai Asan
  • Hyundai Elevator
  • Hyundai Merchant Marine
  • Hyundai Research Institute
  • Hyundai U&I
  • Hyundai Welding
  • Hyundai Power Equipment (UK)

Hyundai Motor CompanyEdit

Hyundai branded vehicles are manufactured by Hyundai Motor Company, which along with Kia comprises the Hyundai Kia Automotive Group. Headquartered in Seoul, South Korea, Hyundai operates in Ulsan the world's largest integrated automobile manufacturing facility,[2] which is capable of producing 1.6 million units annually. The company employs about 75,000 people around the world. Hyundai vehicles are sold in 193 countries through some 6,000 dealerships and showrooms worldwide. In 2012, Hyundai sold over 4.4 million vehicles worldwide. Popular models include the Sonata and Elantra mid-sized sedans.[17]

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 sponsored conferences on Eastern ethics and funded academic research into traditional Korean culture. In 1991, it established the annual Filial Piety Award.[18]

FormerEdit

RestructuringEdit

Before restructuring (beginning circa 2000), Hyundai's major areas of activity included shipbuilding, car manufacture, construction, retailing, finance, and electronics. After founder Chung Ju-yung's death in 2001, the component companies of Hyundai were split off into separate companies.

See alsoEdit

ReferencesEdit

  1. ^ Pronunciations in English vary. Among the variants are:
  2. ^ a b Taylor III, Alex (5 January 2010). "Hyundai smokes the competition". CNN Money. Retrieved 11 January 2012.
  3. ^ "The last emperor". The Economist. 4 February 1999. Retrieved 11 January 2012.
  4. ^ a b c Rowley, Chris; Paik, Yongsun (2009). The Changing Face of Korean Management. Taylor & Francis. p. 10. ISBN 0-415-77400-4.
  5. ^ "Chung Ju Yung, Founder of Hyundai Empire, Dies at 85". The New York Times. 22 March 2001. Retrieved 11 January 2012.
  6. ^ "As Korean Heirs Feud, an Empire Is Withering; Change and Frail Finances Doom the Old Hyundai". The New York Times. 26 April 2001. Retrieved 11 January 2012.
  7. ^ Steers, Richard (1999). Made in Korea: Chung Ju Yung and the Rise of Hyundai. Routledge. p. 96. ISBN 0-415-92050-7.
  8. ^ "Hyundai Electronics to Be Renamed Hynix". The New York Times. 9 March 2001. Retrieved 10 April 2012.
  9. ^ "IBM home computer clones stream in with quality, low prices". Hyundai, the South Korean maker of one of the hottest and cheapest compact cars on sale in the United States, is beginning to hawk its Blue Chip Computer in more than 500 discount stores nationwide. The unit is compatible with the IBM PC-XT.
  10. ^ "Hyundai Announces Management Changes". The New York Times. 29 December 1995. Retrieved 11 January 2012.
  11. ^ "History of Hyundai Group".
  12. ^ "Hyundai Gives In to Seoul Pressure on Chaebol". The New York Times. 22 April 1999. Retrieved 11 January 2012.
  13. ^ "Hyundai to shed 53 units in debt reduction plan". Asia Times. 27 April 1999. Retrieved 11 January 2012.
  14. ^ Hyundai Group - Company History
  15. ^ "Hyundai Group acquires Hyundai E&C". Added Latest Acquisition. Retrieved 17 November 2010.
  16. ^ "Affiliated Companies of Hyundai Group".
  17. ^ "Hyundai Global News".
  18. ^ Callahan, William A. (2006). Cultural Governance and Resistance in Pacific Asia, p. 113. Taylor & Francis. ISBN 0-415-36899-5

External linksEdit