[New Year's Address] Chung Euisun: "This Year, Risk Factors Become Reality... Our Pillar Is Fundamental Improvement"

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Chung Euisun, Chairman of Hyundai Motor Group, emphasized on the 5th, "When the conditions surrounding us become more challenging and competition intensifies, the greatest support that will protect us is fundamental improvement stemming from deep self-reflection."

Hyundai Motor Group Chairman Chung Euisun is delivering a New Year's message to the group’s executives and employees at the "2026 New Year Gathering" on the 5th. Hyundai Motor Company

On this day, Hyundai Motor Group held its New Year gathering in the form of a roundtable discussion, attended by Chairman Chung and other key executives. Chairman Chung, Vice Chairman Jang Jaehoon, President Jose Munoz of Hyundai Motor Company, President Song Hoseong of Kia, President Lee Gyuseok of Hyundai Mobis, President Luc Donckerwolke of Hyundai Motor Group, President Sung Kim, President Manfred Harrer, and Vice President Kim Hyein, among other key executives, engaged in discussions with employees about the business environment, management direction for the year, and new business initiatives.

Chairman Chung expressed concern that this year will be one in which the risk factors the group has long worried about will become a reality, indicating that the business environment will not be easy. In response, he presented five management visions: fundamental improvement derived from deep self-reflection from the customer’s perspective; clear understanding of the essence of situations and agile decision-making; heightened attention and expanded support for supply ecosystem partners; bold collaboration with various partners to expand the ecosystem; and leading new standards in industry and products.

He stressed, "If we honestly reflect on ourselves and make improvements by asking whether our products fully reflect the customer’s perspective, whether there were compromises in the planning or development process, and whether we can confidently stand before customers regarding the quality we pride ourselves on, then Hyundai Motor Group will not be shaken by any crisis."

In addition, Chairman Chung mentioned the need to change the way work is done, stating, "Leaders should not be content with just looking at numbers and data. They must step away from their monitors, visit the field, and directly verify the essence of the situation through people."

He continued, "Above all, what is important is fast and clear communication and agile decision-making that is not bound by formality. Reports should contain one’s own thoughts and conclusions, and they must be shared quickly and appropriately. Rather than remaining within the familiar frameworks and forms, we must ask again what this work truly means to our customers and the company, and what the real problems we need to solve right now are. Only when we boldly change our ways and break out of established molds based on these questions can we truly achieve innovation."

Jung Euisun, Chairman of Hyundai Motor Group (third from the left), is delivering a New Year's message to the group's executives and employees at the "2026 New Year's Gathering" on the 5th. From the left: Sung Kim, President; Jang Jaehoon, Vice Chairman; Chairman Jung; Kim Hyein, Vice President; Song Hoseong, President of Kia; Lee Gyuseok, President of Hyundai Mobis. Hyundai Motor Company

He also highlighted that products exceeding customer expectations cannot be achieved by internal strength alone, and thus called for increased attention and support for supply ecosystem partners. He stated, "The competitiveness of the supply ecosystem is directly linked to our competitiveness, and only when the ecosystem is healthy can sustainable growth be achieved. Based on deep interest in our ecosystem partners, both large and small, we will spare no effort in expanding support and investment so that the industry and the national economy can grow together."

In particular, Chairman Chung pointed out that with the rapid advancement of artificial intelligence (AI) technology, the way competition unfolds is changing quickly, and the global manufacturing sector is entering a period of major industrial transformation. He emphasized that Hyundai Motor Group must confront this AI-driven industrial transformation by expanding the ecosystem through bold collaboration with various partners.

He commented, "Even in the automotive market, the core competitiveness of products is now determined by AI capabilities. However, to be realistic, global leading companies have already secured an advantage in this field through investments amounting to hundreds of trillions of won, while our capabilities are still not sufficient."

However, he added, "We possess world-class capabilities when it comes to the design and manufacturing of physical products. If we look to a bigger future and expand our ecosystem through bold collaboration with various partners, we will be able to provide greater value to our customers."

Chairman Chung also highlighted the philosophy of founder Chung Ju-yung: "If there is no road, find one; if you can't find one, make one. As long as I do not consider it a failure, it cannot be a failure." He stressed, "The most powerful force that has driven Hyundai Motor Group has been the spirit of persevering through any adversity."

Hyundai Motor Group Chairman Chung Euisun (center) is delivering a New Year's message to the group's executives and employees at the '2026 New Year's Gathering' on the 5th. Hyundai Motor Company

In the subsequent roundtable discussion, based on a prior survey of employees, executives listened to opinions about "Hyundai Motor Group’s preparations for the future" and responded to questions. Chairman Chung explained the group’s future direction with a focus on AI, while Vice Chairman Jang Jaehoon discussed the transition to software-defined vehicles (SDV), autonomous driving, robotics, and hydrogen business strategies.

Chairman Chung emphasized, "AI is not merely a single technology, but a technology that fundamentally changes the very 'operating system' of companies and industries. It is a 'general-purpose intelligence technology' capable of defining problems and creating new knowledge on its own for the first time in human history, and a paradigm-shifting technology that renders past success formulas obsolete. In the midst of this wave of change, companies that fail to internalize AI capabilities will find it difficult to survive."

He continued, "As the focus shifts toward physical AI, the value of 'moving entities' such as cars and robots, and 'manufacturing process' data owned by Hyundai Motor Group will become increasingly scarce and valuable. This will be a powerful weapon unique to us that big tech companies cannot easily imitate. With data, capital, and manufacturing capabilities, AI is a game in which Hyundai Motor Group has a real chance to win."

He further stated, "The future depends on whether we see AI as simply a 'tool' or as the 'driving force' of corporate evolution. The only way for Hyundai Motor Group to firmly establish itself as a world-class company in the future is to accept and internalize AI as the lifeblood of the organization, not as an externally acquired technology."

Concluding the roundtable, Chairman Chung said, "The only certainty is the uncertainty of the future, and the most uncertain thing is the certainty of the future. Ultimately, because we are aware of this uncertainty, we must come together as one team. Thanks to our team and our members, we feel confident and empowered, and thanks to customers who love our products, we feel more passionate and motivated to do well together."

This year’s New Year gathering was shared with employees worldwide via email and other means through a pre-recorded video, as key executives attended "CES 2026" in the United States.