Hyundai Motor Co. has appointed José Muñoz, its North American chief and global COO, as CEO, marking the first time a major South Korean conglomerate has elevated a foreign national to the top position. Muñoz has been credited with driving record sales in the US, a key market for the world’s third largest car manufacturer alongside its affiliate, Kia. Hyundai’s decision last month is widely seen as a shift in South Korea’s traditional corporate culture, where foreign leadership remains uncommon.
Hyundai’s appointment grabbed headlines as it is “the exception that proves the rule,” according to Chris Rowley, professor at the University of Oxford’s Kellogg College and at the Bayes Business School of City St George’s, University of London.
Stark differences in national cultures can often explain a reluctance to embrace change, Rowley observes: “This can be seen across [social psychologist Geert] Hofstede’s famous 6 Dimensions Model, on a spectrum of high to low of not only Individualism-Collectivism, Masculinity-Femininity, and Power Distance, but also Uncertainty Avoidance, Long-Short term Orientation, and Indulgence-Restraint.”
In the case of South Korea, the modest rise in female CEO representation provides further evidence, says Rowley: “Over two decades, it barely inched up, from 34% in 2000 to 37% in 2021.” Famous failures in Japan, he notes, including the former “superstar leader” Carlos Ghosn, who was partly brought down by Nissan’s corporate culture, also come to mind.
Yet, it was precisely at Nissan, where Muñoz was an executive for 15 years before joining Hyundai in 2019, that he rose through the car industry ranks, proving so adept at navigating the Japanese workplace culture that he was considered a potential CEO candidate following Ghosn’s departure. A Spanish native and a US citizen, Muñoz earned a Ph.D. in nuclear engineering from Polytechnic University of Madrid and an executive MBA from IE Business School. His appointment appears aimed at strengthening the company against geopolitical and economic uncertainties. In particular, policies proposed by US President-elect Donald Trump, such as increasing tariffs on imports and reducing subsidies for electric vehicles, could significantly impact Hyundai and Kia. Muñoz will assume his new role on January 1.
