Chung Ju-Yung, one of Korea’s leading industrialists and founder of the Hyundai conglomerate until recently Korea’s largest private enterprise entity, which included Korea’s major automotive manufacturer HMC (Hyundai Motor Company) has died, aged 85.

The founder and Honorary Chairman of HMC until it was spun off from the Hyundai Business Group in mid 2000, passed away at the Asan Medical Foundation in Seoulanother of his creationsat 10pm last night, Wednesday March 21. His wife and six sons, including HMC Chairman Chung Mong-Koo, his eldest surviving son, were present.

Hyundai Automotive Distributors Australia Chief Executive Officer C.K.Liew said that Chung Ju-Yung was one of the world’s eminent industrial pioneers of the 20th century.

“Chung Ju-Yung was a visionary industrialist whose drive and success through his Hyundai business empire changed the course of Korea’s history over the last half century.

“Locally, the growth of his Hyundai automotive presence was the most major impact on the Australian car market in the nineties.

“His guidance and inspiration will be missed by many people whose lives he touched,” Mr Liew said.

Born in 1915 in a small village in what is now North Korea, Chung Ju-Yung left home at 18 to begin one of the most remarkable careers in modern industrial history.

Repair Shop

His first venture was to open a car repair shop during the final years of Japan’s 1910-1945 occupation of Korea. During the 1950-1953 Korean War, he travelled south and began his move into industry by establishing Hyundai Engineering and Construction Company.

In the aftermath of the war he helped lead South Korea’s regeneration from a shattered, divided country into one of east Asia’s economic powerhouses.

Over the following 30 years he moved Hyundai into almost every sector of industrial development from construction to ship-building, electronics and of course automobiles. His drive and initiative were legendhe managed to sell his first ship before his shipyards had even been constructed.

In 1967 he directed the first steps for the establishment of Hyundai Motor Company and along with fellow executives helped push cars down the production line at Ulsan20 years later to become the biggest single car manufacturing site in the worldto ensure on-time delivery of the first vehicles.

At that time Hyundai Motor Company was building cars under licence to Ford of UK but Chung recognized that this was both an expensive and limiting way to develop an automotive business.

Determined to export

He was determined that HMC should move into the export of vehicles and to do that it would have to design, engineer and produce its own vehicles. So the agreement with Ford was ended and with technical assistance from Mitsubishi, Hyundai Motor developed Korea’s first proprietary vehicle, the Pony, in 1974.

During the following 10 years Hyundai rapidly developed to become Korea’s leading automotive company and began its export campaign.

By the early 1990s Chung Ju-Yung’s drive and determination had seen the company develop its own in-house engine technology and become completely independent of external technical relationships.

During 2000, now headed by Chung Mong-Koo, it became clear that Hyundai Motor Company had to follow an individual path focusing on its core automotive business. The Honorary Chairman sold off his remaining stake in HMC to allow HMC’s spin-off from Hyundai Business Group to be authorized by the regulators, following which HMC went on to establish a strategic global alliance with DaimlerChrysler.

Chung Ju-Yung’s legacy is one of determination to succeed and to deliver what customers want. He was renowned for his keen understanding of the market and for his sense of timing in industrial and product development.

Shared understanding

That ability and understanding was shared with his eldest surviving son, Chung Mong-Koo who had already established Hyundai Precision’s auto-making operations in the vanguard of Korea’s growing RV market.

Taking over the Chairmanship of Hyundai Motor in 1999 he followed his father’s example by leading the company with a professional determination and a sharp focus on producing the right vehicles for customers at the right time. He has also echoed his father’s determination to invest in modern manufacturing and research and development.

He also led Hyundai Motor to acquire Kia Motors after that car-maker was placed in court receivership and quickly turned its loss-making activities around, leading to both companies posting record earnings and profits for 2000.

Although the founder had not taken an active part in Hyundai Motor Company business for several years, his influence has continued to be felt in the company’s outward-looking and customer-focused attitudes.

A family funeral for Chung Ju-Yung will be held on Sunday March 25.

In Australia, Hyundai has been the top selling imported car brand for the last six years and is marketed by Hyundai Automotive Distributors Australia, a wholly owned subsidiary of century-old, Singapore-based Cycle and Carriage Ltd.