ABSTRACT
Hyundai diversified its business operations in the 1970s, with considerable state support, into heavy and chemical industries. As a result, the central businesses of the Hyundai Business Group in the 1970s involved construction projects undertaken by HECC, automobile assembly by HMC and the shipbuilding operations of Hyundai Heavy Industries Co. (HHI). Through the rapid business expansion of these three key subsidiaries Hyundai developed a monopolistic position in a range of domestic product markets. Professional managerial employees, particularly those from HECC, formed the second tier in the management hierarchy beneath Chung and his top management strata of family members and personal friends and consolidated his central authority over the expanding Hyundai Business Group.
