Hyundai Steamlines Management Responsibilities of R&D Executives

Seoul, Korea, September 27, 2000 – Hyundai Electronics Industries Co., Ltd. announced yesterday that it will adopt the Corporate Research Commissioners’ System for executives in the Research and Development (R&D) division of its Semiconductor business unit starting October 1st. The Corporate Research Commissioners’ System is designed to reduce the burden of organizational management for senior R&D executives, thereby encouraging them to concentrate on their research. This move is intended to increase the productivity of the R&D division by introducing systematic management of R&D staffs. Following the trial implementation of this approach in the Semiconductor business unit, Hyundai will extend the system to all units in the company. Under the Corporate Research Commissioners’ System, directors in the R&D division will assume the title of responsible research commissioner, managing directors will be titled chief research commissioners, and executive directors and vice presidents will be called Hyundai fellows. Candidates for the Commissioners’ System are executives who have more than 10 years of experience in expert R&D with a Ph.D degree, or more than 15 years of R&D experience with a master’s degree. Executives who have significantly contributed to the development of innovative new products or technologies can be candidates as well. The Human Resources department of the company will examine the candidates, and the division president will conduct the final reviews and appointments. The Corporate Research Commissioners will minimize their organizational management responsibilities in order to place greater focus on their roles as project leaders. Under the Commissioners’ System, their emphasis will be on conducting research; developing new technologies, materials, and products; teaching industrial technology in their expert field; and planning the development of new technologies and products. Although the commissioners must work in cooperation with managing executives in order to accomplish the common goals of the organization, their management responsibilities are distinct and limited. Other executive managers will assume their management responsibilities. The goal of each commissioner’s team will be determined by the organization to which it belongs, in cooperation with that organization’s managing executives. The performance of commissioners and their teams will be rated according to an evaluation system that is unique to each business sector. The commissioners will receive the same annual salaries as their equivalent managing executives, and their salaries will be adjusted based on annual evaluations of their technology, knowledge, and capacity for R&D. Commissioners who demonstrate outstanding performance will receive additional stock options as well as strong support for their projects.