HD Hyundai, South Korea's largest shipbuilding conglomerate, announced the promotion of CEO Chung Ki-sun to group vice chairman, signaling the start of corporate management by the third generation of the founding family.

The shipbuilding, oil refining and machinery conglomerate on Friday announced Chung's promotion in its regular reshuffle of executives. The new vice chairman is the older son of Chung Mong-joon, the largest shareholder of HD Hyundai and chairman of the ASAN Foundation.

With Kwon Oh-gap at the helm as group chairman, HD Hyundai has been operating under a professional management system, after the senior Chung stepped down after 2002.

The promotion of his son is viewed as the conglomerate's latest step in paving the way for its next generation of leadership.

The conglomerate said the 41-year-old junior Chung has led efforts to improve its corporate structure, secure orders and advance its technological development amid a downturn in the global shipbuilding industry.