The Center for Good Corporate Governance has recommended that Hyundai Motor Group Executive Vice Chairman Chung Eui-sun should not be appointed as Kia Motors' in-house director.
"Executive Vice Chairman Chung also serves as in-house directors of Hyundai Mobis, Hyundai Motor and Hyundai Steel in addition to Kia Motors' director. We recommend the opposition because excessive directors can undermine his duty to be faithful," the center said in a report titled the "Analysis on the Proposals of the General Shareholders' Meeting" on March 8.
Kia Motors plans to put up a bill to change its Vice Chairman Chung from other non-commissioned director to an in-house director at the general shareholders` meeting on August 15.
"Vice Chairman Chung is known to be appointed as the CEO of Hyundai Motor and Hyundai Mobis. We recommend opposition if the CEO is appointed as more than two registered directors of other companies," said the center.
It also said that Chung benefited from Hyundai Glovis. "Chairman Chung was criticized for using Hyundai Glovis as useful business opportunities for Hyundai Motor and Kia Motors. Although he did not directly decide to establish Hyundai Glovis, he benefited most from the use of business opportunities for affiliates," the center said.