Chung Mong-koo, chairman of Hyundai Motor Group, will step away from his position as registered board director in Hyundai Engineering & Construction, a move that some industry watchers say may be linked to arrangements for a succession to his eldest son Eui-sun, who serves as the vice chairman of Hyundai Motor.

Hyundai Engineering & Construction said in a Wednesday regulatory filing that the reappointment of Chung Mong-koo as its registered board member will not be tabled in the upcoming shareholders’ meeting due on Mar. 29.

The top leader of South Korea’s second largest conglomerate left the management team of Kia Motors in 2009 and Hyundai Steel in 2014, passing on his position to his son.

Chung Eui-sun currently participates in management of Hyundai Motor, Kia Motors, Hyundai Mobis and Hyundai Steel as registered director.

But Hyundai Motor Group denied the speculation, saying the chairman will leave the construction unit to further focus his leadership role on automotive business. The chairman maintains his position as registered director in Hyundai Motor, Hyundai Mobis and Hyundai Powertech.

Hyundai Engineering & Construction is a symbolic part of the conglomerate as Hyundai Group founder Chung Ju-young, the late father of chairman Chung, built his business empire on the builder. Hyundai Engineering & Construction was later passed into the possession of Chung’s brother but chairman Chung eventually acquired it in 2011 after the company was put on sale.

By Lee Seung-hoon and Minu Kim

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]