Press Release

Hyundai Adopts a Digital Corporate Culture

By July 20, 2000 December 7th, 2020 No Comments
– Hyundai Electronics Industries Co., Ltd. is swiftly adopting a ‘digital culture,’ according to Dr. Chong-sup Park, who became President and CEO of Hyundai in April of this year. Dr. Park is implementing a series of advanced management systems and establishing a corporate culture patterned after those he became familiar with during his management experience in California’s Silicon Valley.

¢®¢´ Infusing foreign capital through transparent management To make the management structure more transparent, Hyundai has extended its board of directors. The board is now balanced with a higher representation of directors who come from outside Hyundai, as compared to members from inside the company. This broadens the board’s business perspective and facilitates sound decision making, based on a wider range of business experience. Hyundai has also improved its financial structure through the implementation of cash flow management, and has obtained $500 million in capital investments from foreign (non-Korean) banks. In addition, Hyundai has established a global cash management system, which centrally coordinates all Hyundai’s overseas operating subsidiaries and jointly manages them, with assistance from the Bank of America. This centralized approach ensures more efficient utilization of Hyundai’s global financial resources. ¢®¢´ Implementing a digital corporate culture program Dr. Park has introduced the practice of periodically holding off-site meetings for executives and their staffs. These casual, no-tie meetings are designed to encourage open discussion of current issues and democratic decision making. Dr. Park will utilize these meetings as a corporate communication tool to involve employees as partners in the growth of Hyundai. The off-site meeting concept fosters the convergence of diverse and creative opinions, which will help the individual and corporate culture, as well as the digital culture program, to develop and evolve. ¢®¢´ Allowing casual attire for all employees As of July 1, 2000, Hyundai allows casual attire for all employees. By eliminating standardized clothing and encouraging personal creativeness, Hyundai is taking yet another step to promote an inclusive and effective corporate culture. ¢®¢´ Expanding the annual salary review system and developing human resources Also as of July 1, 2000, Hyundai has expanded its annual salary review system to include all college graduates and equivalent level employees. This change to the salary review system is designed to reward the growth of personal capabilities in the digital management era. Hyundai is also reinforcing its human resource training system in order to maximize the individual abilities of each employee. ¢®¢´ Promoting autonomous and human-centered management Hyundai has introduced various programs to strengthen autonomous and human-centered management in order to nurture individual creativity. For example, there are honorary awards for R&D staffs, incentive programs for sales staffs, venture programs to augment competitive strength, training courses for executives, and the Sabbatical year to enable key long-term contributors to refresh themselves. To make sure programs and incentives continue to address evolving future needs, Hyundai will hold off-site meetings regularly to encourage an environment for the positive acceptance of innovative ideas and constructive criticism.