Hyundai Capital Services (‘Company’) makes an effort for sustainable growth with shareholders, clients, employees, and the society and strives to make a transparent and sound corporate governance structure take root in the Company so as to enhance the stability of business management and further to contribute to the advancement of the financial industry.

The Board of Directors of the Company, which is the highest decision making body, consists of nine members in total who are selected from diverse fields in pursuit of expert and independent opinions and efficient decision making. The Company’s BOD members qualify to become BOD members in accordance with the Act on Corporate Governance of Financial Companies, having expertise, an exemplary sense of ethics, responsibilities, and fairness. The majority of the BOD are composed of outside directors in order to ensure independence from the management.

As of the end of Q2 of 2023, the Company’s BOD consists of a total of five outside directors, two inside directors (including CEO), and two non-executive directors. They come from diverse fields including finance, business management, economics, treasuries, accounting and legal affairs, having abundant work experiences and expert knowledge. The Board Skills Matrix of individual directors is as follows.

Board Skills Matrix

As of JUNE 30, 2023

  • 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
Category, Name, Gender, Expertise, Academic background, Age info table
Category Inside Directors Non-executive Directors Outside Directors
Jinwon Mok Hyeongseok Lee Ganghyun Seo Sangtae Jeon Yoonjeong Kim Gidong Kim Jongrin Mo Jeongho Seo Intae Hwang
Expertise Business Administration Treasuries Treasuries Business Administration Economics Legal Affairs Economics Legal Affairs Accounting
Certification Lawyer Lawyer CPA
Experiences in financial industry O O O O
Experiences in financial industry O O O O O O O O O
Experiences in financial industry O O O O
Treasuries/accounting O O O
Law/public policy O O
Business administration/economics O O O O
Academic background Bachelor’s degree Master’s degree Bachelor’s degree Master’s degree Doctorate degree Bachelor’s degree Doctorate degree Bachelor’s degree Doctorate degree
Gender Male Male Male Male Female Male Male Male Male
Age 50s 50s 50s 50s 40s 50s 60s 50s 60s

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 Jin-Won Mok Male 24-Mar-24 Risk Management Committee Now) CEO of Hyundai Capital Services/Executive Vice President at Hyundai Motor Group
Former) Executive Vice President at Doosan
Inside director Hyung-Seok Lee Male 20-Oct-24 Remuneration Committee
Sreering committee
Now) Finance Division Head /Senior Vice President at Hyundai Capital Services
Other non-executive directors Gang-Hyun Seo Male 24-Mar-24 Chair of the Board Now) Planning & Finance Division/EVP at Hyundai Motor Company
Former) Finance Division Head/Senior VP at Hyundai Steel
Sang-Tae Jun Male 29-Mar-26 - Now)Corporate Planning Division 2 Head/EVP at Hyundai Motor Company
Former) Business Planning Department2 Head/EVP at Hyundai Motor Company
Outside directors Yun-Jung Kim Female 29-Mar-24 Sreering committee
Risk Management Committee(Chair)
Officer Candidates Recommendation Committee
Now) Professor of Economics at Seogang University
Now) The Korean Economic Association director
Ki-Dong Kim Male 01-Aug-24 Audit Committee
Officer Candidates Recommendation Committee
Now) Managing Partner at LawVax (law firm)
Now) Outside director at EUSU HOLDINGS
Jong-Ryn Mo Male 29-Mar-24 Officer Candidates Recommendation Committee(Chair)
Remuneration Committee
Now) Professor of Graduate School of International Studies at Yonsei Univ.
Jeong-Ho Seo Male 29-Mar-24 Audit Committee
Remuneration Committee(Chair)
Now) Partner Lawyer at Wiz Law (law firm)
Now) Outside director at HANWHA SOLUTIONS
In-Tae Hwang Male 29-Mar-24 Senior outside director
Audit Committee(Chair)
Risk Management Committee
Now) Professor Emeritus of Business at Joongang University
Now) Full-time advisor at Haesol (accounting firm)
Now) Outside director at S-Oil

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 2022, eight board meetings were convened with 37 items put on the agenda and the average attendance rate of directors was 95.8%.
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.