Hyundai

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Hyundai
Former typeChaebol
IndustryConglomerate
FateBroken up
Founded1947
FoundersChung Ju-yung
Defunct2003
HeadquartersSeoul, South Korea
Area servedWorldwide
ProductsAutomobiles
Heavy industry
Finance and Insurance
Construction
Engineering
Retail
Aerospace
Defense
Steel
 
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This article is about the Hyundai chaebol before the completion of its break-up in 2003. For the continuing rump entity, see Hyundai Group. For the automobile manufacturer, see Hyundai Motor Company.
For other uses, see Hyundai (disambiguation).
Hyundai
Former typeChaebol
IndustryConglomerate
FateBroken up
Founded1947
FoundersChung Ju-yung
Defunct2003
HeadquartersSeoul, South Korea
Area servedWorldwide
ProductsAutomobiles
Heavy industry
Finance and Insurance
Construction
Engineering
Retail
Aerospace
Defense
Steel
Hyundai
Hangul현대
Hanja現代
Revised RomanizationHyeondae
McCune–ReischauerHyŏndae

Hyundai Group (Hangul: 현대그룹; hanja: 現代그룹; /ˈhjʌndɛ/)[1] was a multinational chaebol (conglomerate) headquartered in Seoul, South Korea. It was founded by Chung Ju-yung in 1947 as a construction firm and Chung was directly in control of the company until his death in 2001.

Following the 1997 East Asian financial crisis and Chung's death, Hyundai underwent a major restructuring and break-up, which reduced the Hyundai Group's business to encompass only container shipping services, the manufacturing of elevators, and tourism. Today, 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.

Etymology[edit]

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

History[edit]

Hyundai was founded as a small construction firm by Chung Ju-yung in 1947.[3] Hyundai Construction began operating outside of South Korea in 1965, initially entering the markets of Guam, Thailand and Vietnam.[4]

Hyundai Motor Company was founded in 1967.[5] Hyundai Heavy Industries was founded in 1973,[6] and completed the construction of its first ships in June 1974.[7]

In 1983 Hyundai entered the semiconductor industry through the establishment of Hyundai Electronics (renamed Hynix in 2001).[8]

Hyundai announced a major management restructuring in December 1995, affecting 404 executives.[9]

In April 1999 Hyundai announced a major 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.[10][11]

Operations[edit]

The former headquarters of Hyundai in Seoul

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]

Hyundai Motor Company[edit]

Main article: Hyundai Motor Company

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 the world's largest integrated automobile manufacturing facility[2] in Ulsan, 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 2010, Hyundai sold over 1.7 million vehicles worldwide. Popular models include the Sonata midsize sedan and Elantra compact.[12]

Corporate social responsibility[edit]

Hyundai and its subsidiaries created a variety of initiatives in the social sphere, initially in South Korea and then internationally as the company expanded. 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.[13]

See also[edit]

References[edit]

  1. ^ Pronunciations in English vary. Among the variants are: The closest English pronunciation to the original Korean would be /ˈhjʌndɛ/ HYUN-deh, but the final vowel is checked and cannot occur word-final in English.
  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. ^ "Hyundai Announces Management Changes". The New York Times. 29 December 1995. Retrieved 11 January 2012. 
  10. ^ "Hyundai Gives In to Seoul Pressure on Chaebol". The New York Times. 22 April 1999. Retrieved 11 January 2012. 
  11. ^ "Hyundai to shed 53 units in debt reduction plan". Asia Times. 27 April 1999. Retrieved 11 January 2012. 
  12. ^ The Wall Street Journal. Auto Sales
  13. ^ Callahan, William A. (2006). Cultural Governance and Resistance in Pacific Asia, p. 113. Taylor & Francis. ISBN 0-415-36899-5

External links[edit]