Hyundai Construction Equipment Appoints Choi Cheol-gon as New CEO

Industrial Vehicle Business to be Sold to Hyundai Genuine for 136 Billion KRW on January 1 Next Year

Vice President Choi Cheol-gon, newly appointed as the CEO of Hyundai Construction Equipment on the 30th [Photo by Hyundai Construction Equipment]

[Asia Economy Reporter Kim Heung-soon] Hyundai Construction Equipment, a construction equipment subsidiary of Hyundai Heavy Industries Group, held an extraordinary general meeting of shareholders on the 30th and resolved to appoint Vice President Choi Cheol-gon as an inside director as originally proposed. Subsequently, at the board meeting held thereafter, Vice President Choi was appointed as the new CEO.

Choi, who was nominated as the new CEO of Hyundai Construction Equipment on the 12th of last month, purchased 5,000 shares of the company's stock on the 25th and 26th prior to the shareholders' meeting. The company explained, "The purchase of treasury shares demonstrates the CEO's commitment to responsible management and also expresses confidence in future performance."

Born in 1960, the new CEO Choi previously served as Executive Director of the Asia Operations Headquarters at Volvo Construction Equipment Group and as Executive Director in charge of production for the Heavy (medium and large construction equipment) Business Group at Doosan Infracore.

On the same day, Hyundai Construction Equipment also approved a proposal to transfer its industrial vehicle business to Hyundai Genuine for 136 billion KRW, effective January 1 of next year. The company explained that it plans to sell the industrial vehicle division, which has different industrial characteristics, and focus solely on the construction equipment business.

The proceeds from the sale will be used to acquire 100% of the shares of the Brazilian subsidiary and 40% of the shares of the Chinese holding company held by Korea Shipbuilding & Offshore Engineering. The local subsidiary producing and selling construction equipment in Brazil did not previously have any shares held by Hyundai Construction Equipment.