From the posts I have found regarding the peeling steering wheels ... Hyundai must of got a very big batch of bad leather!
Mine is peeling at exactly 12 o'clock .. it's like a patch where the top layer peeled off and its now the patch is about one inch of rough leather. In addtion it started on my shift knob as well. Note... I only have the car 8 months and do not wear rings or anykind of hand lotion. It's just cheap crap leather I guess.