Hyundai Motor Group Chairman Chung Mong-koo will step down as the chair of the board, as he was not reappointed as an internal director at the firm’s board meeting, the automaker said Wednesday.

Chung, who had been the board chair since 1999, will retain the positions of Hyundai Motor’s unregistered executive and Hyundai Mobis’ registered director. He has been stepping away from day-to-day management and has not attended board meetings since 2018.

Upon the departure of Chung, whose term ends March 19, Hyundai Motor plans to introduce a proposal to appoint Chief Executive Officer Kim Sang-hyun as its new in-house director.

Kim’s appointment is aimed at strengthening the board’s financial decision-making capabilities at a time when it plans to make large investments and improve profitability in the future, the automaker said.

The firm will also elect a new chair of its board of directors at its shareholders meeting next month. The board is likely to be headed by an outside director, a Hyundai official said.

The automaker also announced in a regulatory filing that it would decide at a shareholders meeting to add new mobility and charging business. The firm plans to invest 20 trillion won ($16.8 billion) by 2025 to secure capabilities for future businesses, such as electrification, self-driving, connectivity, mobility, artificial intelligence, robotics and personal air vehicles.

By Shin Ji-hye (shinjh@heraldcorp.com)