Hyundai Galloper

The
Hyundai Galloper Shinhwa, Myth and Legend

With the introduction of Genesis Motors Company in premium luxury car segment as
well as the Hyundai Motors IONIQ, part of an expanded model lineup of hybrid and
electric vehicles, many in the industry see these as bold moves by the Hyundai Motor
Group and it leadership. Actually, it is but the latest chapter in a story and a legacy
reaching back decades. Don Southerton, April 2016

Hyundai Galloper

In 1991, the Seoul Hyatt Hotel was the site of the launch of a new mid-sized SUV, the
Hyundai Galloper. A pet project of future Hyundai Motor Group Chairman Chung
Mong Koo at the time no one felt the Galloper could dislodge the Ssangyong
Korando, the popular and dominant SUV in the Korean market. That said, it would
take only a year for the Galloper to surpass the Korando. To many this would be but
the start of what would become the Galloper shinhwa--myth and legend.

1991 Seoul Hyatt Launch

Stepping back in the story, following family expectations and after graduating from
college Chung Mong Koo joined the Hyundai Group, South Koreas largest and highly
diversified industrial conglomerate. By the mid-1970s, Chung was personally
involved in the forming of a new division within the GroupHyundai Precision and
Industry Company LTD. With the growth of Koreas export industry and increased
transportation via ocean transport ships, Chung Mong Koo recognized the growing
demand for ocean-going containers. In this new venture, Hyundai Precisions
approach was to establish a standard for cargo containers, while also gaining a
competitive edge through production technology and product development. The
model proved to be highly successful.

Meanwhile, as the Hyundai Groups fledgling car division expanded its operations
Hyundai Precision, too, saw an opportunity and began to support the Hyundai
Motor Company as a Tier I supplier.

Soon after, Chung and Hyundai Precision would look to introduce its own fourwheel drive vehicle to the Korean market-- independent of Hyundai Motor
Company.

Under Chungs leadership, Hyundai Precision had since 1988 worked on developed
the J-car project with a team from Americas Roush Enterprises. This became the X100 ECS ROUSH. However, despite hopes the vehicle would have widespread appeal,
reaction to the prototype by a test market study with U.S. consumers was poor.

Undaunted Hyundai Precision turned to Mitsubishi for production support. After
review, the Mitsubishi Pajero was selected. As was common at the time, the model
would be re-branded and locally manufactured for the Korean market. Badged as
the Hyundai Galloper, the SUVs would be produced by Hyundai Precision at its
Ulsan plant complex. It is worthy to note that Hyundai Motor Company provided
the engines, transmissions and body panels, while Hyundai Motor Service, the
Groups auto retail arm distributed and sold the SVUs. (Hyundai Motor Service one
of the companies Chung oversaw in addition to Precision).

Soon, after the launch of the Galloper it was a hit not only in South Korea but also in
Europe and Asia. In 1991, 3,006 Gallopers were sold, with sales of 24,264 in 1992
and 37, 971 in 1994. This success was fueled by a number of high-profile
international promotional and marketing activities--the Galloper participating in
long distance off-road rallies, which gained considerable media attention.

Link to 1991 Korean language Galloper TV Ad

Galloper on tour in the UK

Record Sales and the Galloper shinhwa
Hyundai Precisions bold sales and promotion strategy continued to prove highly
successful. In fact, within the company the Galloper shinhwa myth and legend
spread fueled by an uncanny five-fold increase in sales between 1997 and 1998.
Within a broader context and adding to the legacy this success occurred during the
devastating 1997 Asian economic meltdown, commonly referred to as the IMF
Crisis. In contrast at the same time the highly anticipated launch of the Samsungs
automotive division, in an alliance with Nissan, proved dismal.

By 1999, Chung Mong Koo would assume control of Hyundai Motor Company. In
addition to his leadership role of HMC, plus another five of the Groups companies
including Hyundai Precision, the car division also acquired Kia Motors. Soon after to
consolidate, Galloper production was moved to Hyundai Motor.

By 2000, amid a restructuring of the Hyundai Motor Company and its affiliates,
Precisions name was changed to Hyundai MOBIS.

In 2003 after a successful 12-year run, the Hyundai Terracan succeeded the
Galloper. What does remain is the Galloper shinhwa, a legacy we see today into bold
and new ventures by Hyundai leadership with Genesis Motors Company in the
premium luxury car segment and a wide range of Hyundai eco-cars.

About the Author
Know by many as The Hyundai Whisperer, Don Southerton has a life-long interest
in Korea and the rich culture of the country. He has authored numerous publications
with topics centering on workplace culture, new urbanism, emerging premium and
upmarket trends, and entrepreneurialism.

He is a frequent contributor to the media (WSJ, Forbes, CNN Fortune, Bloomberg,
Automotive News, Korea Times, Korea Herald, Yonhap, Korea Magazine, eFM TBS, FSR
and The Economist on Korea facing business and culture.

He heads Bridging Culture Worldwide a Golden, Colorado based company that
provides mentoring, strategy, and consulting worldwide to Korea-based global
business.

Question and comments? questions@koreabcw.com

BCW 2016

Photographs courtesy of Hyundai MOBIS Seoul, South Korea

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The

Hyundai Galloper Shinhwa, Myth and Legend

1991 Seoul Hyatt Launch

Galloper on tour in the UK

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