Hyundai Capital has put in place stable and efficient governance to achieve corporate sustainability and protect interests of its shareholders and stakeholders. We implement robust corporate governance by allowing the Board of Directors to provide proper checks and balances and enhance governance efficiency by making sure that the board is comprised of experts. In addition, to promote transparency in governance we get important decisions that the company makes approved by the board and have in place the standards and procedures for getting the board’s approval in line with the Articles of Incorporation. To increase independence of governance, we have created the Audit Committee and put internal policies in place which allow us to convene meetings where external auditors attend discussions without senior management’s presence and also made sure that all the members of the Officer Candidates Recommendation Committee are outside directors. As a result of our efforts, Hyundai Capital was named as one of the leading finance companies in corporate governance by the Korea Corporate Governance Service (KCGS) in 2021.

Board Skills Matrix

As of December 13, 2022

  • Leadership 9 members

    Expertise in running a large organization

  • Legal/Public Policy 4 members

    Expertise in analyzing/responding to legal risks and in public policy

  • Treasury/Accounting 3 members

    Expertise in treasury and accounting for business management and oversight

  • Business/Economy 2 members

    Expertise in general business management and economy

  • Industry Knowledge 4 members

    Expertise in finance/automobile industries

  • Gender Female 11%
    Male 8 members Female 1 members
    • Male 8 members
    • Female 1 members
  • Age 59.5 old on avg.
    54 or younger 4 members 55~60 3 members 61 or older 2 members
    • 54 or younger 4 members
    • 55~60 3 members
    • 61 or older 2 members

Hyundai Capital ensures independence of the Board of Directors to allow it to fulfill its role of overseeing senior management and making important business decisions to protect shareholders’ interests. For these purposes, we have appointed a senior outside director who represents outside directors and created the Board of Outside Directors which is made up of solely outside directors empowered to discuss pressing issues independently of senior management. We make sure that the majority of the board are outside directors and their level of professional expertise is sophisticated enough to give constructive feedback to the organization and provide checks and balances on decisions made by senior management.

Board Composition

Classifi-cation,Name,Gender,Term,Responsibilities,Career highlights
Classifi-cation Name Gender Term Responsibilities Career highlights
CEO Jinwon Mok Male Mar 24, 2024 Risk Management Committee Now) CEO of Hyundai Capital Services/Executive Vice President at Hyundai Motor Group
Former) Executive Vice President at Doosan
Inside director Hyeongseok Lee Male Oct 20, 2024 Remuneration Committee
Executive Committee
Now) Finance Division Head/VP at Hyundai Capital Services
Other non-executive directors Ganghyeon Seo Male Mar 24, 2024 Chair of the Board Now) Planning & Finance Division Head/EVP at Hyundai Motor Company
Former) Finance Division Head/Senior VP at Hyundai Steel
Sangtae Jeon Male Jun 26, 2023 - Now) Business Planning Department Head/EVP at Hyundai Motor Company
Outside directors Yoonjeong Kim Female Mar 29, 2024 Remuneration Committee
Risk Management Committee
Officer Candidates Recommendation Committee
Now) Professor of Economics at Seogang University
Former) Secretary General at the Korea International Economy Association
Gidong Kim Male Aug 1, 2024 Audit Committee
Officer Candidates Recommendation Committee
Now) Managing Partner at LawVax (law firm)
Former) District Attorney at Busan District Prosecutor’s Office
Jongrin Mo Male Mar 29, 2024 Officer Candidates Recommendation Committee(Chair)
Executive Committee
Now) Professor of Graduate School of International Studies at Yonsei Univ.
Former) Dean of Graduate School of International Studies at Yongsei Univ.
Jungho Seo Male Mar 29, 2024 Audit Committee
Remuneration Committee(Chair)
Now) Partner Lawyer at Wiz Law (law firm)
Former) Outside director at Haatz
Intae Hwang Male Mar 29, 2023 Senior outside director
Audit Committee(Chair)
Risk Management Committee(Chair)
Now) Professor Emeritus of Business at Joongang University
Now) Full-time advisor at Haesol (accounting firm)

Hyundai Capital convenes a Board of Directors Meeting once a quarter on a regular basis and extraordinary board meetings on an as-needed basis. We define board independence in its decision-making process specified in the Articles of Incorporation and make sure that it requires two thirds or more of the votes cast by the board directors to approve any transactions between a registered director and the company in line with the Commercial Code. In 2021, nine board meetings were convened with 56 items put on the agenda and the average attendance rate of outside directors was 100%.
In addition, we have six committees reporting to the board to help it make decisions efficiently including the Board of Outside Directors, Audit Committee, Risk Management Committee, Officer Candidates Recommendation Committee, Remuneration Committee and Executive Committee. The board and its committees are evaluated in terms of their composition, roles, responsibilities, management, etc. and outside directors are also evaluated individually once a year. Outside directors evaluate the board and individual committees that they are part of in terms of whether the board and the committees were in compliance with laws, whether sufficient information was provided for them to make the right decisions, whether the board composition was appropriate, etc. With the board’s approval, a team looking after board management puts in place the evaluation frameworks to assess outside directors’ expertise, fairness, ethics and integrity and reports the evaluation results to the board.

Committees reporting to the Board

Committees, Functionalities
Committees Functionalities
Board of Outside Directors Review important business decisions independently of senior management
Audit Committee Evaluate internal controls frameworks and report business performance
Risk Management Committee Create basic risk management guidelines and review/make important risk management decisions
Officer Candidates Recommendation Committee Recommend candidates for CEO/outside directors/Audit Committee members and build/manage candidate pools
Remuneration Committee Design/manage remuneration frameworks applied to officers
Executive Committee Approve matters related to business management, etc. as the board delegates

Hyundai Capital has the Risk Management Committee under the board. At the committee, we are managing and controlling different types of risks that the company needs to take during the course of business by recognizing/measuring/assessing them in a reasonable manner to make sure the company stably runs its business even when risk has arisen. Also, the committee creates basic risk management guidelines and strategies, decides how much risk that the company is allowed to take, and approves risk management policies created/revised, etc. In addition, to efficiently manage different types of risks arising from business, we are running a sub-committee of the Risk Management Committee named ‘Risk Control Committee’ which consists of Chief Risk Officer, officers/executives looking after finance/corporate management, debt collections, business units and corporate strategy.
The role of the Risk Control Committee is to put controls in place to enable the company to effectively manage risk based on basic risk management guidelines and standards approved by the Risk Management Committee.

Types of risks we manage and how we manage them

Types,Definitions,How we manage risks
Types Definitions How we manage risks
Credit risk The risk of a loss arising from failure to collect principal and interest due to a counterparty defaulting on a loan or contractual obligations - Measure and manage credit risk on a regular basis
- Determine a credit crisis stage in light of credit risk leading index, etc.
- Create and run contingency plans for each stage of credit crisis
- Conduct stress tests under different scenarios and determine whether to be able to respond
Liquidity risk The risk of a loss arising from a financial institution being in default due to a shortage of funds or paying higher funding cost to resolve a shortage of funds - Create policies to manage liquidity
- Monitor liquidity indicators on a regular basis and conduct stress tests
- Put in place and run contingency plans to respond to liquidity crisis
Other risks Any risks arising from interest, market, operations, etc - Responsible teams manage other risks depending on risk factors pursuant to applicable policies and procedures
- Check the risk likelihood year-round and implement measures to prevent the risk
- Report how risk has been managed to senior management depending on gravity of the situation.