---

Hyundai Founder Steps Down...But Motor Chief Hangs Tough

31 May 2000

     Seoul - As South Korea's Hyundai Group unveiled plans today to sell 
more than $3 billion in assets, the company's founder, Chung Ju-yung, 
announced that he would step down from his role as Honorary Chairman.  In 
addition, he said that his two sons, Hyundai's current top executive 
officers, should also relinquish all management duties and step aside.

     However, Hyundai Motor issued a statement declaring that its chairman 
Chung Mong-koo had no intention of resigning.  "As an expert manager of 
Hyundai's automaking unit, he will continue devoting himself to leading the 
company into becoming a global player," the statement said.

     The family wrangling comes in the midst of grave financial problems 
for the conglomerate.  They hope to avert a cash crunch by trimming back 
investment plans and selling off more than $3 billion of assets: Hyundai 
Elevator and up to 15 other group companies.

     Chung Ju-yung originally founded the company as a tiny auto repair 
shop in 1940.   A family feud was ignited in March when Chung's younger son 
was named sole chairman of the group.


MJR