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Hyundai reveals CEO's pay for first time ever

Thanks to some government pressure, Hyundai's billionaire chairman, Chung Mong Koo, has revealed just how much he gets paid each year. Honestly, the amount is a bit lower than we'd expect considering he helms such a huge industrial empire. The 76-year-old chairman brought home $13 million in 2013, $5.2 million of which came from Hyundai's automotive business while both Mobis and Hyundai Steel chipped in $3.94 million, each. For reference, Ford CEO Alan Mulally netted $23.2 million in 2013, although the vast majority of that money came from stock options.
The push for Chung to reveal his pay was part of a larger effort by the South Korean government called the Financial Investment Services and Capital Markets Act. The act forces several thousand companies to release info on annual pay, bonuses and severance for employees earning over $5 million won ($469,000), according to Bloomberg.
"With the disclosure of the executives' compensation, the pressure to deliver better profits will increase," said Heo Pil Seok, the CEO of Midas International Asset Management. It seems to be working, as Hyundai shareholders, of which Midas is one, have seen their shares increase by 6.1 percent in 2014, which includes a 1.2-percent jump as of yesterday, according to Bloomberg.

2016 Kia Optima builds on third-gen car's sense of style, efficiency

When Hyundai launched the sixth-generation Sonata in 2009, it gave the world its first real taste of how good a Korean car could be. When Kia launched the redesigned Optima a year later, though, it showed the world just how good a Korean car could look. The handsome design of third-generation car has translated wonderfully to its fourth generation. The attractive sheet metal is evolutionary, rather than revolutionary, building on the looks of the previous car, with Kia's trademark grille treatment stretched wide, and better integrated with the headlights. Vertical foglight surrounds and an independent lower grille, meanwhile, make for a more aggressive fascia. LED taillights, an integrated diffuser and a pair of meaty oval exhausts are the highlights in back. Once again, the links to the current car are quite clear. The new Optima should boast some improvements to the current car's technology, as well. A six-speaker stereo is standard, although audiophiles will flock to the optional 14-speaker Infinity unit. Connectivity, being what it is, was also addressed, with Kia offering a new version of the company's UVO infotainment system. Running on an eight-inch touchscreen, the Optima's latest infotainment system integrates neatly with both Android Lollipop and iOS 8. Under hood, Kia will continue to offer a standard, naturally aspirated 2.4-liter four-cylinder, as well as an optional 2.0-liter, turbocharged four-cylinder. Power for both engines is estimated to be down compared to the current car, with the 2.4 dropping from 192 horsepower and 181 pound-feet of torque to 185 hp and 178 lb-ft, and the 2.0T losing 27 of its 274 hp and nine of its 269 lb-ft. Kia is claiming that both engines have been retuned for fuel economy, although it wasn't able to provide any figures to back up that argument. On top of the 2.4 and 2.0T, Kia will also offer a 1.6-liter, turbocharged four-cylinder, complete with the company's first seven-speed dual-clutch transmission (the previous two engines are mated to six-speed autoboxes). The 1.6, which Hyundai/Kia fans will know from the Veloster Turbo and Forte range, produces 178 hp in the Optima, which is paired with 195 lb-ft of torque. Have a look at the images of the all-new Optima, and then scroll below for the official press release.

Hyundai Motor Group promotes heir apparent

SEOUL — Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea's second largest group. Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to "deteriorating global trade issues and changes in competitive dynamics in major markets," Hyundai Motor Group said in a statement. Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders. "In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group's operations, aiding and reporting to Chairman Mong-Koo Chung," the statement said. The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea's trade tensions with the United States that threaten to disrupt its production plans. "This is a good sign," Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment. "This will enhance transparency about who is controlling the group and who is making key strategic decisions," she said. Generational shift The junior Chung, currently vice chairman of the group's crown jewel, Hyundai Motor Co, has stepped up in recent years, attending motor shows and government meetings with business leaders on behalf of his 80-year-old father who has made few public appearances. Shares in Hyundai Motor ended up 0.8 percent on Friday, and affiliate Kia Motors fell 0.3 percent in a wider market that rose 1.4 percent. Chairman Chung, the all-powerful boss, has presided over Hyundai for about two decades, transforming the company into the world's fifth-biggest car maker along with Kia Motors. Hyundai is now struggling to reverse slowing sales in China and the United States, where the company has suffered due to its delayed response to booming demand for SUVs. The appointment is part of an effort to "improve future competitiveness and secure future growth engines" at a time when the auto industry is undergoing major changes, the group said. The junior Chung has led the group's efforts to develop future vehicles such as autonomous and connected cars, as well as Hyundai's fledging premium brand Genesis.