At Kia, Demoted for His Own Good

Ahead of probable union troubles, co-CEO Chung Eui Sun, a son of the founding family, has been rotated out. Most think it's to save his reputation

Chung Eui-Sun, President of Kia Motors speaks during the launch of the company's 'cee'd'' car at the Kia Motors factory in Teplicka Nad Vahom near Zilina, Northern Slovakia, 07 December 2006. Getty Images

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By Moon Ihlwan

March 24, 2008 at 5:36 PM UTC

This article is for subscribers only.

At most companies, a decision by shareholders to strip a chief executive officer of his title would be a humiliating blow to the outgoing executive. That's not necessarily the case in South Korea, even when it appears to be a demotion for the scion of a founding family of the , the sprawling industrial conglomerate.

On Mar. 21, Kia shareholders replaced Chung Eui Sun, the son of charismatic Kia Chairman Chung Mong Koo and one of three co-CEOs along with his father and the president in charge of domestic operations, Cho Nam Hong. Taking the younger Chung's place is Kim Ik Hwan, who in November became vice-chairman. Still, few in Korea think the son no longer is being groomed as the successor to Chung, who is also the chairman of Hyundai Motor, Kia's owner and the country's largest carmaker.