이 기사는 2021년 12월 22일 07:59 thebell 에 표출된 기사입니다.

Lee Kwang-guk, president and head of Hyundai Motor Group China, has resigned and been replaced by senior vice president Lee Hyuk-joon, in the latest move by the South Korean automotive conglomerate to scale down its Chinese unit after years of sluggish sales in the country.

The personnel changes come as part of Hyundai Motor Group’s executive reshuffle on Friday. Lee Kwang-guk will serve as an adviser to the conglomerate, stepping down two years after taking the top position of the conglomerate’s Chinese operations in October 2019.

His successor, Lee Hyuk-joon, was born in 1969 and received his PhD from Renmin University of China. Before being appointed as the new head, Lee held several senior positions at Hyundai Motor Group China including chief strategy officer and chief government affairs officer.

The leadership change in the conglomerate’s China unit contrasts with its units in other countries where head executives received promotions in the latest reshuffle. Kim Seon-seob, senior vice president and head of Hyundai Motor India, was promoted to executive vice president and moved to a new role as global business head. Hyundai Motor Russia’s head Oh Ik-kyun was also promoted from senior vice president to executive vice president.

“Promotions were given to the group’s executives who achieved strong performance despite headwinds such as the Covid-19 pandemic,” an official at Hyundai Motor Group said.

Lee Kwang-guk’s resignation was widely expected as Hyundai Motor Group China has suffered from sluggish sales for years since 2017 when relations between South Korea and China hit a low after Seoul refused to halt the deployment of the anti-missile system, known as Terminal High Altitude Area Defense, which Beijing deemed a threat to its national security.

The move is also in line with a major restructuring earlier this year. With Hyundai Motor and Kia Corp, the conglomerate’s two automakers, operating separately, their global business units also have separate organizations and leadership teams. Yet, China was the only exception, with Hyundai Motor Group China’s head overseeing operations of both Beijing Hyundai and Dongfeng Yueda Kia as well as the overall business affairs of the Chinese market.

In July this year, however, the conglomerate underwent a structural reorganization in which Beijing Hyundai and Dongfeng Yueda Kia were placed under the direct control of chief executives of Hyundai Motor and Kia Corp, respectively, resulting in the reduced role of Hyundai Motor Group China. Its functions further reduced after an additional restructuring in September.

“It is unlikely that Hyundai Motor Group will appoint a president-level executive as head of Hyundai Motor Group China in the future,” an industry insider said. (Reporting by Su-jin Yoo)