Press Release

Letter from President, C.S.Park on Chairman Chung’s Resignation

By June 5, 2000 October 31st, 2019 No Comments

Date: June 05, 2000 To: HEI Executive Staff From: C. S. Park Re: Chairman Chung’s Resignation As you know by now, on May 31, 2000 Honorary Chairman J.Y. Chung announced his immediate retirement and requested both of his sons (M. K. Chung and M.H. Chung) to relinquish their duties and responsibilities as Chairman. Subsequent to this announcement, Chairman M. H. Chung has submitted his resignation from Chairmanship and Directorship from Hyundai Electronics Industries Co., Ltd along with other positions within various Hyundai companies effective June 1, 2000. He will focus his activities on matters related to the economic cooperation with North Korea in the future, while still remaining as a shareholder of various Hyundai companies. Both Honorary Chairman Chung and M. H. Chung firmly believe this is the opportune time for a professional management team to run the companies, while establishing strong corporate governance with outside independent board of directors. I believe their actions as founding members of the Hyundai companies will have a profound impact on how companies are managed in the future. I believe the immediate impact on HEI will be minimal except for the fact that our board will elect a new Chairman of the Board and may add new board members. HEI already has four independent board members with various committees in place, including the Nominating Committee. As many of you have already experienced in the past couple of board meetings, our board members are fully engaged with and committed to HEI’s future success. I am confident that our board is capable of dealing with this transition, and is supportive of a strong corporate governance for the best interests of our shareholders. As a result of Chairman Chung’s bold actions, HEI management is encouraged to focus more on our core business rather than investing our resources into other unrelated businesses within the Hyundai Group. It also means that we as professional managers need to step up and be more accountable for the future of the company. For the past couple of months since my inauguration as HEI’s president and CEO on April 1, 2000, we have made significant progresses in attaining our financial adequacy by closely managing our free cashflows on a worldwide basis. Our financial results in the first quarter have shown a strong upward trend in both sales and EBITDA. I am also pleased to note that our key employees believe in our future vision and are very supportive of our drive for efficiency at both the administrative and technical levels. I am receiving extremely positive feedback from our first quarterly meeting this past week with our key employees by openly sharing our first quarter financial results and business activities. I would like to thank each and every one of you for taking the time and effort to share your respective division’s progress and vision. Please join me in thanking Chairman M. H. Chung for his entrepreneurship and foresight to build a world-class electronics firm. We are eternally indebted to him for where we are now and where we will be in the coming future. We should reciprocate his hard work by enhancing our shareholder value. Let us continue to focus on our core businesses and work closely with our stakeholders, and work to increase value to our customers worldwide. I would appreciate if all of you could spend some time with your staff members to reinforce what we believe in and what we are trying to do. Best Regards, CS Park President and CEO Hyundai Electronics Industries Co., Ltd.