The appointment of Hyundai's in-house agency is an unexpected blow for Cheil. Observers have indicated that the PAVV account review was provoked by a difference of opinion between the brand's marketing head and Cheil.
Cheil will retain media planning and buying duties for the account.
Samsung has not outsourced its advertising since 1995, when it handed its refrigerator account to Welcomm Publicis. The agency held the business for a period of two years.
Representatives from Cheil did not comment on the news.