Just three months ago, Chung became the broader Hyundai group's executive vice chairman in a move widely seen as a precursor to a momentous generational change in leadership at South Korea's second-largest conglomerate. On Wednesday, he reshuffled more than a dozen senior executives across Hyundai Motor, the $24 billion crown jewel, Kia Motors and other affiliates. Notably, a trusted lieutenant under Chung's father was reassigned.

A change of gears is certainly needed. Strategic missteps, like staying on the sidelines of an SUV boom, have resulted in disastrous market-share losses in major markets for the world's 5th largest automaker. To make matters worse, costly recalls led to a near 70 percent year-on-year plunge in third-quarter earnings. All of this against the background of an escalating trade war that has put supply chains and sales at risk.

Paul Singer's feisty hedge fund has thrown a wrench into things too. Earlier this year, Elliott disclosed stakes worth a combined $1 billion in Hyundai Motor, Kia Motors, and auto-parts maker Hyundai Mobis. The activist has since agitated for change, and last month demanded the group return up to 12 trillion won, or $10.6 billion, of capital to shareholders, including 8 trillion won to Hyundai Motor investors.

There are early signs of progress. For one, the traditionally Korean-dominated group is tapping more outsiders for ideas: on Wednesday, it named a one-time BMW executive to run Hyundai's research and development arm, the first foreigner to do so. Last month, Chung invested $250 million in ride-hailing unicorn, Grab, too, in a bold bet on Southeast Asia.

Before the latest changes, stock in Hyundai Motor had slumped almost 30 percent since the start of the year. The latest news, encouragingly, sent shares up 6 percent. Chung has the wheel; now he needs to put pedal to the metal.