AMCHAM head James Kim joins Hyundai Mobis as outside director

The company expects him to play a role in its future mobility business, where it plans to spend $7.8 billion

Han-Shin Park 2

2023-02-15 15:48:58 phs@hankyung.com

Leadership & Management

James Kim, chairman of the American Chamber of Commerce in Korea (AMCHAM), is joining South Korea’s largest auto parts maker Hyundai Mobis Co. as an outside director.

Hyundai Mobis, an affiliate of Hyundai Motor Co., said on Tuesday it has appointed him as a new independent member of the five-member board of outside directors.

Having previously worked as the chief executive at a number of big companies, including GM Korea, Microsoft Korea and Yahoo Korea, Kim has strong business management skills, particularly in the mobility and software segments, according to Hyundai Mobis.

“The addition of new director Kim is expected to propel Hyundai Mobis toward the next stage of growth in future mobility,” it said.

Kim will replace Karl-Thomas Neumann, whose term ends in March.

Hyundai Mobis unveils future mobility vehicle concepts at CES 2023

Four other outside directors, including Chang Young, former head of UBS Securities Seoul, will remain unchanged.

Hyundai Mobis also reappointed Chung Euisun, chairman of Hyundai Motor Group, as an internal director.

MEASURES TO ENHANCE SHAREHOLDER VALUE

The company said it plans to invest up to 10 trillion won ($7.8 billion) in future mobility projects over the next three years.

Specifically, it will spend between 5 trillion won and 6 trillion won on electrification and core components and invest up to 4 trillion won in autonomous driving, advanced driver assistance systems (ADAS) and software development.

Separately, it will put aside 5 trillion won in cash to respond to growing market uncertainties amid a global economic slowdown.

“At the same time, we will also seek out and invest in new businesses that will serve as our long-term growth engine such as advanced air mobility (AAM) technology,” it said in a statement.

To enhance its shareholder value, the company will buy 150 billion won worth of treasury shares from the market for cancellation this year.

Its dividend payout ratio will be maintained at 20-30% of its net profit.

A total of 4,000 won, including an interim dividend, a share will be paid to shareholders registered at the end of 2022, it said.

The director appointments and measures to enhance its shareholder value will be submitted to its annual general meeting scheduled for March 22 for approval.

Write to Han-Shin Park at phs@hankyung.com
In-Soo Nam edited this article.