Hyundai Motor Group (HMG) chairman Chung Mong-koo is to step down from his position as executive director of Hyundai Motor Company, after a board of directors meeting this week did not reappoint the 81 year old for another three year term.

Chung's term as executive director at HMG ends on 16 March but he will continue as chairman of the HMG Group which includes Hyundai Motor, Kia Motors and parts maker Hyundai Mobis, of which he is also executive director. 

The move is expected to pave the way for Chung Mong-koo's only son, Chung Euisun (49), to take over as head of HMG.

He currently serves as group executive vice chairman and is credited with leading the carmaker's drive towards becoming a "smart mobility solutions provider".

Euisun is pushing through a change in Hyundai Motor's purpose of business description in its articles of association from "vehicle manufacturer" to "vehicle manufacturer and future mobility service provider" which is expected to be approved at the next shareholders' meeting.