[Interview] Jo Seonghwan, ISO Chairman: "Hyundai Motor's DNA is Goal-Oriented Drive"

A True Hyundai Man Speaks on Hyundai Motor
First Korean Elected as ISO Chairman
Supported by Hyundai Motor Group's Global Network
Hyundai Motor's 'Drive' Rooted in Mission and Earnestness
The Key to Overcoming Crises and Rapid Growth

Editor's Note[Hyundai Motor Company, Over the Mobility] is content that summarizes the innovation secrets that enabled Hyundai Motor Group to rise to the global third place. Historically, countries leading the automotive industry have dominated the global economic hegemony. The automotive industry, the flower of manufacturing, exerts comprehensive influence in terms of technological development, exports, and employment. While Hyundai Motor Company was once a fast follower, it has now emerged as a first mover leading the industry. We deliver the past, present, and future address of Hyundai Motor Company as felt from global reporting sites. The series will be published as a book after 40 installments.

Jo Seong-hwan, President of ISO (former CEO of Hyundai Mobis), is being interviewed by Asia Economy at his office in Gangnam-gu, Seoul. Photo by Jo Yong-jun

"Hyundai Motor Group definitely has its own DNA. I believe that is goal-oriented drive."

Jo Seong-hwan, Chairman of the International Organization for Standardization (ISO), has been with Hyundai Motor Group for nearly 30 years. He joined Hyundai Motor Company in 1994 as a CNG (Compressed Natural Gas) engine researcher, then served as head of the U.S. Technology Research Institute, director of R&D planning and coordination, CEO of Hyundai Autron, deputy head of Hyundai Motor R&D Headquarters, and CEO of Hyundai Mobis ? a true 'authentic Hyundai man.' Having researched and developed numerous Hyundai and Kia models, he witnessed Hyundai Motor's crises, growth, and successes in the global market. Now expanding his activities on the global stage, he feels the changes in Hyundai Motor Group's status more than anyone else. The DNA he identifies as unique to Hyundai Motor is precisely 'drive.'

Chairman Jo emphasized that Hyundai Motor's drive stems from a sense of mission and earnestness. He said, "Hyundai Motor Group employees, to achieve their goals, keep searching for alternative methods even if they fail. When focused on a single goal under leadership, the organization exhibits an incredibly formidable power." In 2021, when the COVID-19 pandemic and semiconductor supply crisis overlapped and all global automakers halted their factories, Hyundai Motor Group instead achieved remarkable growth.

The background of this leap in growth was 'purpose-driven drive.' At the time, as CEO of Hyundai Mobis, Chairman Jo recalled, "Mobis, which supplied semiconductors to Hyundai Motor, maintained a certain level of appropriate inventory, and Hyundai Motor and Mobis purchasing teams would wait endlessly in front of semiconductor companies, pleading to secure supplies. Thanks to their earnestness, Hyundai and Kia factories were able to operate without disruption."

Regarding the quality of Hyundai and Kia vehicles in the global market, he evaluated that they have reached the status of a global top-tier. Chairman Jo said, "Around 2010, as Hyundai Motor rapidly rose in the U.S., I heard that executives from competitors like GM and Ford were personally driving Hyundai vehicles and analyzing costs and quality. Now Hyundai Motor receives scores befitting a global top 3 in quality and product competitiveness from global evaluation agencies."

He also mentioned that his election as the first Korean ISO chairman in September 2022 was greatly influenced by Hyundai Motor Group's global network strength. At the 44th ISO General Assembly held in Abu Dhabi, Chairman Jo won by more than double the votes against the Chinese candidate. He explained that it was thanks to the Korean government’s support and Hyundai Motor Group’s backing. Especially, his victory over a strong Chinese candidate from a long-standing permanent member country raised Korea’s global status on the international stage. Chairman Jo’s term runs from last year through this year. He laughed, saying, "During the election campaign, I traveled around the globe. I even went to Brazil and France, then caught COVID and had to stay in a hotel before returning."

Founded in 1974, ISO is a non-governmental organization that develops and disseminates internationally accepted standards. Its secretariat is located in Geneva, Switzerland, and 173 countries participate worldwide. Over 1,600 international standards are produced annually. The scope of standardization covers manufacturing and technology fields as well as climate change, sustainability, energy, diversity and inclusion, health, food, and construction. Experts gather in technical committees to determine detailed standards for each field.

Chairman Jo’s role is to provide the broad direction necessary for these experts to establish standards. He said, "Compliance with global standards enables trade between countries and is the starting point for quality recognition on the international stage. My role is to set policy directions based on the belief that standards make human life easier, safer, and better." Recently, he has been actively introducing artificial intelligence (AI) technology into standardization work and preparing forums to promote the importance of standards internationally. The three major global standard organizations ? ISO, the International Electrotechnical Commission (IEC), and the International Telecommunication Union (ITU) ? will hold the ‘International AI Standards Summit’ in Korea at the end of this year.

Domestically, Chairman Jo has also served as chairman of the Korea Autonomous Driving Industry Association since 2021. He believes that based on his global experience and network, he can contribute to Korea’s autonomous driving industry. He identified two prerequisites for the development of Korea’s autonomous driving industry: first, drastically easing regulations related to autonomous driving to secure abundant 'real driving data,' and second, creating a government-led ecosystem that allows autonomous driving startups to generate revenue. He emphasized, "The market is not yet open, so autonomous driving startups have nowhere to make money. The government should expand pilot projects to establish a Korean-style autonomous driving ecosystem."

Cho Sung-hwan, President of ISO (former CEO of Hyundai Mobis), is being interviewed by Asia Economy at his office in Gangnam-gu, Seoul. Photo by Jo Yong-jun

Below is a Q&A with Chairman Jo.

- When you first joined Hyundai Motor Group, what role did you take on?

▲ I was responsible for developing CNG engines installed in large buses. After completing my Ph.D. in the U.S., my professor recommended a research position at Hyundai Motor. At that time, the Mabuk Research Center in Yongin was a barren field with nothing around. (laughs) Having completed my studies well in the U.S., I thought it would be good to work for a Korean company. I was personally familiar with Hyundai Motor because I had worked on projects with them during graduate school.

- You returned to the U.S. in 2012 as head of the U.S. Technology Research Institute. What was Hyundai Motor’s image in the U.S. at that time?

▲ From 2010, Hyundai Motor began to grow significantly in the global market. It did well in China, but also started receiving good responses in the U.S. The role of the U.S. Technology Research Institute, which tests production plants and quality, became important. At that time, telematics and infotainment features were gaining attention, and the role of localizing software specifications in the U.S. was emphasized. Hyundai Motor’s rapid growth in the U.S. drew considerable scrutiny from competitors. I heard that executives from GM and Ford commuted for a month driving Hyundai vehicles to analyze quality, even disassembling bolts and nuts to analyze costs. The fact that the American national brands started analyzing Hyundai Motor indicates how much Hyundai’s status had changed.

- What is the unique DNA of Hyundai Motor that enabled such rapid growth?

▲ It is goal-oriented drive. To achieve goals within set deadlines, even if they fail, they keep searching for alternative methods. This drive may sometimes seem reckless or unconventional, but it reflects earnestness. Earnestness comes from a sense of mission that the assigned task must be completed. The difference between mission and earnestness created today’s Hyundai Motor Group. Idealistic and beautiful ideas are good in normal times, but in crises, focused drive toward exit strategies and goal achievement shows its true value. Hyundai Motor has that DNA. I hope this culture continues across generations.

- You mentioned Hyundai Motor Group’s support was significant in the ISO election. What was the situation during the election?

▲ Initially, I was the sole candidate and thought it would be easy. But suddenly China nominated a candidate, turning it into a competitive election. China is a permanent member of ISO, and their candidate was a prominent figure. So I campaigned vigorously. I traveled around the globe, even went to Brazil, caught COVID, and had to stay in a hotel room before returning ? an amusing episode. I held media conferences, gave interviews to foreign press. The government helped a lot, but Hyundai Motor Group’s global network was very helpful during the campaign.

- What is your role at ISO?

▲ At ISO, I serve as the chair of the governance board, essentially the chairman of the board. Standards are not only for technology and industry but also guide our daily lives. My role is to discuss and lead policies and directions at the governance level. The secretariat has committees handling the technical details, so I do not intervene in the specifics. Instead, I focus on overarching discourse and policy strategy directions.

- Why are standards important in our daily lives?

▲ Without meeting ISO standards, international trade is impossible. Products that do not meet standards cannot enter the global market and cannot guarantee quality or safety. While establishing standards is important, compliance is equally critical. In Europe, laws and regulations are based on standards. To be recognized internationally, meeting standards is the minimum requirement. It provides the basic conditions to enter the global stage.

- What have you felt since officially taking office as ISO chairman last year?

▲ There is a need to raise awareness of standardization activities among our government and companies. While working globally, I see fierce movements driven by national interests despite broad discussions. I hope Korea’s standardization activities gain more attention and recognition. Recently, I met a trade minister-level official from China’s Zhejiang University who was more knowledgeable about standards than me, the ISO chairman. He had clear beliefs and goals on how to resolve trade issues and contribute to economic development through standards. I hope more Korean experts actively participate on the global stage even after I leave this position.

- You also serve as chairman of the Korea Autonomous Driving Industry Association. What are the issues facing Korea’s autonomous driving industry?

▲ For Korea’s autonomous driving industry to develop, technology, regulation, and market must be supported. The way to activate this is to have many vehicles on the road to collect real data. However, Korea’s ‘positive regulation’ only allows what is explicitly permitted, hindering data collection. Although autonomous driving special zones have been designated nationwide, their scope is small with many restrictions. The number of vehicles on the road is far less than in the U.S. or China. Moreover, while technology has been developed to some extent, the market is not open. Companies have nowhere to make money. Even pilot projects to secure revenue sources are difficult to activate due to commercialization approval issues.

- How should these problems be addressed?

▲ Above all, a government-led ecosystem is necessary. A marketable project should be created where software and hardware responsibilities are divided horizontally for collaboration. Autonomous vehicles should not be approached with the traditional vertical integration supplier model of existing automakers. Suppliers should collaborate horizontally, each taking their share to create a marketable autonomous driving project. If the government lays the platform, companies will invest. In this context, industry-academia-research collaboration should be more active in commercialization. While basic technology development is important, considering global competition, it is time to produce tangible products.

Cho Sung-hwan, President of ISO (former CEO of Hyundai Mobis), is being interviewed by Asia Economy at his office in Gangnam-gu, Seoul. Photo by Cho Yong-jun