HMM President Kim suddenly declares resignation

Kim Choong-Shik, president and CEO of Hyundai Merchant Marine, recently stepped down, tendering his resignation during an emergency meeting with HMM's executive directors on October 4.

Kim started his career with Hyundai Engineering & Construction Co., Ltd. in 1972. Passing through Hyundai Heavy Industries and Hyundai Merchant Marine, he finally took office as president and CEO of HMM in 1999.

His sudden resignation was recognized as a conflict with group management officials as he had rejected supporting subsidiary companies.

His speech in the meeting reflected this conflict with group officials as his major reason for stepping down. He also went on to say that he was saddened at leaving HMM without fully realizing his vision as a CEO in Korean corporate culture.

HMM has acted as a holding company for 15 businesses affiliated with the Hyundai group. Up to now, it has supported some affiliated companies such as Hyundai Asan. However, Kim rejected executive demands that HMM support Hyundai Engineering & Construction, which had been suffering from liquidity problems, by selling Hyundai Heavy Industries stock at the end of last year.

Kim tried to not involve HMM in other affiliates liquidity crises. This caused conflict between HMM and its affiliates on more than one occasion.

HMM has not yet decided whether to accept his resignation.

In the meantime, HMM creditors are worried about the future of the company in the wake of Kim's tendered resignation. Creditors set a high value on Kim's ability to sustain sound management at HMM based on his determination to pursue self-management rather than support affiliated companies. Creditors are especially worried about the possibility of full-scale support of weaker affiliates if the board of directors appoints a successor to Mr. Kim.