Automaker Kia appoints CEO Song Ho-sung for 3rd term

Seoul: Automaker Kia on Friday appointed Song Ho-sung to the company’s chief executive officer (CEO) position for another three-year term through an approval at the company’s shareholders’ meeting in Seoul.

Since leading Kia from 2020, Song has overseen the record-breaking performance of South Korea’s No. 2 automaker during his past two terms, including the feat of achieving 100 trillion won (US$68.7 billion) in annual sales for the first time last year, reports Yonhap news agency.

At the meeting, Song outlined Kia’s strategic direction for the year, emphasising the company’s commitment to accelerating electric vehicle (EV) adoption and expanding its purpose-built vehicle (PBV) business.

Shareholders also approved an increase in the maximum board member compensation limit from 8 billion won to 17.5 billion won.

The company said the increase was made to accommodate the salary of Hyundai Motor Group Executive Chair Euisun Chung.

While Chung has previously received compensation from Hyundai Motor Co. and Hyundai Mobis Co., he had not received any compensation from Kia despite serving as a registered executive.

According to a Hyundai Motor regulatory filing, Chung received around 11.5 billion won in compensation from Hyundai Motor and Hyundai Mobis together last year.

Additionally, shareholders approved an amendment to Kia’s articles of incorporation, adding real estate development to the company’s business objectives. Kia said the amendment was reflective of its plan to construct flagship stores.

Kia also said it will buy back 3.49 million common stocks worth 350 billion won during the trading hours from March 20 through June 11 to enhance shareholder value.

The company plans to cancel all of the stocks during the third quarter.

Kia’s monthly sales for February rose 4.5 per cent from a year before, as the company saw increases in demand both at home and abroad.

Kia, an affiliate of local industry leader Hyundai Motor Co., sold 253,850 vehicles last month, up from 242,917 units in the same month last year, the company said.

—IANS