Hyundai Motor to launch i40cw at Italy and A new Test Drive Strategy in Korea

Hyundai Motor is planning to launch at the Geneva Motor Show next year March the i40cw station wagon built for the European market and competing against such vehicles as the Opel Insignia Sports, the Ford Mondeo and the VW Passat.

The South Korean car maker released first sketches and details of the model, saying customers would now have 2 choices between petrol and a diesel unit. Fitted with start-stop technology, consumption is listed at around five liters per 100 kilometers.

Features include Bi-Xenon headlamps with curvature lighting and lane assist.

The sketch shows a flat windscreen with a roof sloping slightly to the rear. The upper window line forms a coupe-shaped silhouette while the front grille is in the typical Hyundai design.

On the other hand, with the result of the recent survey on how customers would be convinced in buying a car which “Test Drive” leads the survey that car fanatics would love to have a test drive first before deciding to buy the car.  Hyundai Motor Co. will soon introduce a test driving service that allows potential customers to test drive vehicles delivered to a place designated by the motorist from Jan. 3, 2010 around South Korea.

The service, which the company is operating on pilot basis until the end of the year, allows customers to pick any Hyundai vehicle for a test drive and have the vehicle delivered at a place and time set by the customer.

The vehicle can also be returned using a similar system with Hyundai employees picking up the car at a place and time chosen by the driver.

Until the end of the year, the service is available through 12 test driving centers in Seoul, Busan, Incheon, Daegu, Gwangju and Daejeon. From Jan. 3, the company plans to expand the service to 30 centers across the country.

To use the service, visit the carmaker’s website at www.hyundai.com  or visit one of the designated test driving centers.

 

Hyundai Engineering Won $534 Million Dollar Project for Advance Techno Hospital in Qatar

Hyundai Engineering & Construction has won a $534 million US Dollar project to build an advance technology medical center in Doha Qatar. This is another Million Dollar project of Hyundai Engineering & Construction in the last quarter of 2010.

Hyundai Engineering & Construction signed a contract with Qatar’s Public Works Authority to construct the Hamad Medical City at the 2006 Doha Asian Games site, beating industry leaders from the USA and Italy.

Over the next 34 months, Hyundai E&C will renovate the site, which was used as an athlete’s village and offices for the Asian Games, into an advanced technology hospital which specializes in gynecology, surgery and rehabilitation, as well as a medical research center. This project could boast the medical tourism from different part of the Middle East to experience the advance technology in Doha.

This is another good chance for Hyundai Engineering & Construction to be the priority list for the future project of Qatar. Qatar is an important market which is expected to place orders for diverse large-scale construction projects as the country would be hosting for the 2022 World Cup.

“Through winning bids for the Heart of Doha project (in April) and Hamad Medical City, we have gained momentum to re-enter the Middle East market.”

The Hyundai Engineering & Construction, meanwhile, will continue to step up efforts to diversify its overseas markets and the range of its projects next year, aiming to become a top 15 engineering firm in the world.

 

Hyundai Motor as Preferred Bidder for Hyundai E&C Group

SEOUL: South Korea's Hyundai Motor Group will likely be named as new preferred bidder for the country's largest builder, the Hyundai Engineering and Construction Group (Hyundai E&C Group) a major shareholder of the builder said Wednesday, after rival Hyundai Group was pushed out of the race when it fails to submit the requirement.

Nine creditors with a combined 34.88 percent stake in Hyundai Engineering and Construction Group will vote at an unspecified date on whether to name Hyundai Motor preferred bidder, Ryu Jae-Han, head of state-run Korea Finance Corp, told Dow Jones Newswires.

On Monday creditors walked away from an initial deal to sell their stake to the Hyundai Group, saying it did not give them enough information about how it would finance the reported 5.51 trillion won (4.9 billion US Dollar) cost.

When asked whether Hyundai Motor, which lost the preliminary deal in November, would be chosen as preferred bidder this time, Ryu said he "can't deny" the possibility.

"I can't deny that the current atmosphere makes it seem that way, but that's something that the creditors need to vote on. We'll have to see how the process plays out," Dow Jones quoted Ryu as saying.

If the deal goes through Hyundai Motor would become the construction company's biggest shareholder.

The takeover battle is part of a family feud over the former Hyundai Empire, which was split into separate units after the death of its billionaire founder Chung Ju-Yung in 2001.

Hyundai Motor, headed by the founder's second son Chung Mong-Koo, was hived off almost a decade ago as a separate entity. With affiliate Kia Motors, it is now the world's fifth largest carmaker.

The construction firm came under creditor control in a debt-for-equity swap in 2001 amid lingering fallout from the 1997-98 Asian financial crisis.

The Hyundai Group -- which includes a shipping firm, a brokerage, a tour company that operates projects in North Korea and an elevator maker -- initially outbid Hyundai Motor for the construction firm.

The group's chairwoman Hyun Jeong-Eun is the founder Chung's daughter-in-law.

But creditors said Hyundai Group failed to submit detailed information about its financing of the acquisition, particularly a 1.2 trillion won loan obtained from French bank Natixis.

By:

http://economictimes.indiatimes.com/news/international-business/hyundai-motor-may-win-bidder-status-for-construction-firm/articleshow/7144122.cms

 

Hyundai Motor sold morethan 500,000 cars in the United States of America

South Korea’s leading automaker Hyundai Motor Co. has sold more than 500,000 vehicles this year in the USA.

It is the highest number of cars Hyundai has ever sold in a single year since tapping into the U.S. market in 1986, the company said, adding that it expects to sell 530,000 vehicles by end-year.

“Hyundai’s sales continue to climb as more consumers become aware of our excellent products, high quality, the industry’s best warranty, and improving dealership experience,” said Dave Zuchowski, executive vice president at Hyundai Motor America.

A slew of new models, such as the all-new Tucson and Sonata, were also attributed for the increased market share, he said.

Hyundai’s Sonata sedan was the company’s most popular model in 2010, selling 183,295 units, up 50 percent from a year earlier, according to Hyundai.

Sales of the Tucson, a sport utility vehicle, reached 36,333 units, up 135 percent on-year, it said.

Hyundai said it plans to expand its vehicle lineup by including more luxury sedans and eco-friendly cars in order to keep up its strong performance in the U.S. market.

It will also launch the Equus and Sonata Hybrid cars in the U.S. next year, the company said.

Meanwhile, Hyundai and its affiliate Kia Motors Corp. sales in China are expected to surpass a combined 1 million units this year.

Hyundai Motor said its January-November sales in China reached 637,686 units, a 23.5 percent increase from the same period last year.

Its smaller affiliate Kia Motors Corp.  sold 301,358 vehicles in the same period, up 44.6 percent from a year earlier.

The combined number of the automobiles sold by Hyundai and Kia in China during the 11-month period totaled 939,044 units.

The two companies are the only Korean auto manufacturers that produce and sell within China.

According to the China Association of Automobile Manufacturers on Thursday, Korea held 7.54 percent of the Chinese auto market share during the January-November period, ranking fourth after China, Japan and the United States.

Hyundai and Kia have been aggressively pushing into China as the country has become the world’s largest automobile market.

The two companies sold more than 800,000 cars in China last year. They are seeking to sell more than 1.1 million vehicles there in 2011.

Auto sales in China exceeded 16 million units from January to November as demand in the world’s most populous market continues to grow, the association said.

The figure represents a 34.05 percent surge from the number of units sold during the same period last year.

The figure marks the second year that the number of vehicles sold in China has surpassed that of the United States, which logged

10.4 million in sales during the January-November period.

Last year, China surpassed the U.S. to become the world’s largest automobile market. Auto sales in the U.S. totaled 10.4 million in 2009.

In November of this year, 1.697 million units were sold, up 26.86 percent from a year earlier.

The association said it expects the total number of cars sold to reach 18 million by the end of December.

Sales for the next year will likely be around 20 million units, according to an estimate by the industry group.

During the last 11 months, local Chinese manufacturers held 45.43 percent of the market share, selling 5.65 million vehicles, followed by Japanese manufacturers with 2.43 million, or 19.51 percent, and German firms with 1.80 million units, or 4.51 percent.

The U.S. and France sold 1.28 million units (10.33 percent) and 333,400 units (2.68 percent), respectively.

China’s auto exports soared 68.53 percent to 483,300 units during the same period from a year earlier. (Yonhap News)

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101212000345

 

60- 40 Probability Chances for Hyundai Group to take over Hyundai Engineering

 

Korea Exchange Bank main creditors raise questions on the terms of investment by Tong Yang Securities.

Hyundai Group is struggling for further pressure to answer issues by bank creditors related to the 1 Billion Dollars financing sources of its bid for Hyundai Engineering & Construction Group.

Lately, Hyundai Group were asked to submit detailed information on whether it had agreed to a put option on Hyundai Engineering & Construction  shares when Tong Yang Securities agreed to provide 800 billion won ($705.6 million) as a strategic investor in the takeover deal.

A put option gives the owner the right to sell a specified amount of shares at an agreed price and deadline. Critics say the “put option” could amount to a disguised high-interest loan by Tong Yang to Hyundai Group with Hyundai Engineering & Construction Group shares possibly serving as collateral, which would be in violation of the takeover terms set by creditors.

Lat December 16, 2010, the creditors demanded that Hyundai Group must submit more documents concerning its 1.2 trillion won loan from a French investment bank with a deadline of December 14, 2010 to submit the documents or face the risk of having its preferred bidder status for Hyundai Engineering & Construction revoked.

International Business analyst said “The history repeats itself” as the Hynix was mismanaged by the Hyundai Group and finally lost it in 2002, the Hyundai Engineering & Construction Follows and lost its full control during Asian Economic down-turns. “The Stability of Hyundai Group is unpredictable” to take charge for the company which was founded by the Late Ju yung Chung with Chung family’s highest sentimental value is unsafe at the hand of Jeong eun Hyun.  The late Chung’s son with good management plan would take care of it or lost it from the control of the Chung’s family forever like what had happened to the Hynix

"There was a request among the creditors to confirm whether there was a put option between Tong Yang Securities and Hyundai Merchant Marine [Hyundai Group’s main unit],” said an official from Korea Exchange Bank, the main creditor. "Hyundai Group should submit information if there were any put options included in the consortium contract with Tong Yang Securities, and if not, whether there are any such plans for the future."

Ryu Jae-han, president of the Korea Finance Corporation, one of Hyundai Engineering & Construction’s three main creditors, has been the main executive raising questions about the possibility of a put option.

Ryu has been the only creditor to publicly say he may seek the assistance of financial authorities to clarify the issue.

Hyundai Group has already denied that it agreed to put options with Tong Yang Securities.

"We don't know why the parties including the other bidder [Hyundai Motor Group] and even some of the creditors are trying to create an atmosphere for canceling the memorandum of understanding [on the sale of Hyundai E&C], which is in violation of the agreement," said a Hyundai official.

"We hope that the creditors will stop being pushed around and change their position so we can move forward with the deal under the original guidelines,” said the official, referring to pressure being applied by Hyundai Motor.

 

 

Hyundai Group Leaks a deal for 72.5% Hyundai E&C Ownership for 1 Trillion Loan

Hyundai Group at risk of losing bid for Hyundai Engineering & Construction if it fails to obey

 

Creditors from Hyundai Engineering & Construction yesterday demanded that Hyundai Group should submit more documents about its controversial 1.2 trillion won ($1.1 billion USD) loan from French investment bank Natixis that helped finance its takeover of Korea’s largest builder.

Creditors said that a loan confirmation document submitted earlier by Hyundai Group was not sufficient to clear up doubts about the loan conditions. Hyundai Group bid 5.5 trillion won to acquire a 35 percent stake in Hyundai Engineering &Construction.

Hyundai Group last week submitted a loan confirmation issued and notarized by Natixis that stated that the group had not pledged shares in Hyundai E&C or its group affiliates as collateral to gain the loan, which would have been in violation of the takeover terms.

But new questions have been raised on whether the person who signed the loan confirmations was not from Natixis but rather its affiliate NexGen Capital and Nexgen Reinsurance.

“We feel that the confirmation that Hyundai Group submitted is insufficient,” the creditors said. They said that Hyundai Group will have to submit additional documents by Dec. 14 or risk losing its status as preferred bidder for Hyundai E&C.

Hyundai said that there are no problems with those who signed the loan confirmation since they hold concurrent positions at Natixis.

NexGen Capital had previously provided financial assistance to Hyundai Group and the Ireland-based company currently holds 5 percent of Hyundai Merchant Marine’s shares. It has been at the center of attention since some believe the loan was backed by NexGen.

“Asking for the loan contract when we have proven everything through the confirmation is unheard of in the history of M&As and is a very irrational demand,” said Hyundai Group officials. Information was published in the local media yesterday that M+W Group, an affiliate of Austria’s Stumpf Group, had demanded acquiring 72.5 percent of Hyundai Engineering in return for providing a 1 trillion won investment as a strategic partner with Hyundai Group for the Hyundai E&C takeover. M+W Group later withdrew its offer as a strategic investor after Hyundai Group rejected the demand.

“We don’t know how the information was leaked, but this is true. But we could not accept this offer and the deal collapsed in the end,” said a Hyundai Group official. “We have no plans whatsoever to sell Hyundai Engineering.”

Hyundai Group is also under pressure by its creditors to sign a financial restructuring program, with the deadline expiring yesterday. Hyundai Group said it is willing to do so, but is asking for more time until the Hyundai E&C deal is completed.

Korea Exchange Bank, the main creditor for both Hyundai Group and Hyundai E&C, recently asked Hyundai Group to sign the financial restructuring plan but Hyundai said the demand was made at the last minute.

Hyundai Group said the timing is inconvenient since it is in the last stages of trying to complete the takeover of Hyundai E&C. “We must concentrate on the deal until it is completed.”

 

By Jung Seung-hyun [seungjung@joongang.co.kr]

http://joongangdaily.joins.com/article/view.asp?aid=2929304

 

Lock & Lock, Hyundai, Woori Finance: South Korea Equity Preview

 

 

The following companies may have unusual price changes in South Korea After the North Korean Attacked to the South Korean Island. Stock symbols are in parentheses, and share prices are from the previous close.

The Kospi index rose 0.1 percent to 1,927.68.

Daewoo Shipbuilding & Marine Engineering Co. (042660 KS): The shipbuilder is likely to win a $4 billion order to build 20 container vessels for A.P. Moeller-Maersk A/S, Korea Economic Daily reported yesterday, citing industry officials it didn’t identify. Daewoo fell 1.7 percent to 28,200 won.

Hyundai Engineering & Construction Co. (000720 KS): Creditors of the builder asked Hyundai Group to provide more proof of how it will fund its planned acquisition of Hyundai Engineering, according to an e-mailed statement yesterday by Korea Finance Corp., the biggest shareholder of the South Korean builder. Hyundai Engineering climbed 4.3 percent to 63,300 won.

Lock & Lock Co. (115390 KS): The company was rated new “buy” by Samsung Securities Co., with a target price of 46,000 won. The maker of plastic food containers rose 3.2 percent to 38,450 won.

Maeil Diary Industry Co. (005990 KS): The milk maker will work with Sapporo Holdings Ltd. to sell Sapporo’s beer in South Korea, the Japanese brewer said yesterday in a statement. Maeil shares gained 2.4 percent to 19,600 won.

Woori Finance Holdings Co. (053000 KS): A group led by employees of Woori will submit a preliminary bid as the government privatizes the company, Maeil Business Newspaper reported yesterday, citing a Woori official it didn’t identify. Vogo Fund may separately bid for Woori, the report said. Woori rose 4.7 percent to 14,450 won.

To contact the reporter on this story: Jun Yang in Seoul at jyang180@bloomberg.net /Editor  :Darren Boey at dboey@bloomberg.net

http://www.bloomberg.com/news/2010-11-25/lock-lock-hyundai-woori-finance-south-korea-equity-preview.html

 

Hyundai Steel's Dangjin plant brings green approach to steel

Hyundai Steel’s new blast furnace (right) at the company’s plant in Dangjin, South Chungcheong Province. (Hyundai Steel)

With the second blast furnace kicking in, the annual production capacity of Hyundai Steel’s integrated steelworks in Dangjin, South Chungcheong Province has doubled to 8 million tons.

While the Dangjin plant allowed Hyundai Steel to begin producing steel from the raw materials, which according to experts offers a higher profit margin than using electric arc furnaces, the facility has larger implications for Hyundai Motor Group as a whole.

By adding blast furnaces to its operations, Hyundai Motor Group was able to complete what it calls “resource circulating business structure” that goes from molten iron to automobiles, and from scrap back to unprocessed steel.

Under the resource circulating business structure, steel produced at the Dangjin plant will be processed by Hyundai Hysco into cold-rolled products, which will then be used in Hyundai Motor Co. and Kia Motors Corp.’s vehicles.

The steel from scrapped vehicles will then be melted down at Hyundai Steel’s electric blast furnace and used to produce construction materials, which will be used by the group’s construction arm Amco.

However, Hyundai Steel’s move upstream in the steel industry comes at a time when environmental concerns are rising.

The steel industry has long been considered to be one of the more serious polluters, and the use of coal as a raw material in steelmaking with blast furnaces highly carbon intensive.

Hyundai Steel’s Dangjin plant, however, was built with such concerns in mind from the designing process.

In building the plant, the company installed the world’s first enclosed raw material processing system as part of its efforts to make it a “world-class eco-friendly steelworks.”

In Hyundai Steel’s system, all movement of materials from ship to processing facilities occur on enclosed conveyor belts. In addition, the materials are stored in dome-shaped stores cutting off all contact with open air, addressing the problem of dust from coal and other materials ― a major pollutant associated with steelworks ― at the source.

According to the company the enclosed domes also help save space in storing the materials.

Hyundai Steel estimates that the dome stores are about 2.5 times more efficient in terms of iron ore storage per unit area.

In addition, Dangjin plant’s enclosed storage facilities also allow the company to save fuel, which in turn helps reduce its carbon footprint.

According to Hyundai Steel, the facilities maintain the water content of the materials constant at between 6 to 8 percent. In contrast, materials stored outside can contain up to 14 percent water during the rainy season, and this water needs to be evaporated leading to additional energy costs.

However, the effect of eco-friendly technologies is not limited to the more obvious benefits of reducing pollution, but extends to the productivity of companies and nations.

According to a report by Oh Dong-hyun of the Samsung Economic Research Institute, Korea ranks third among members of the Organization for Economic Cooperation and Development, with an average annual growth rate of 4.84 percent.

However, the country ranks 22nd in terms of green productivity, which takes into account the effects “non-economic” by-products, such as greenhouse gases, have on the economy, among the 32 OECD member nations.

According to the SERI report, green management’s core consists of three Rs; reduce, replace and recycle.

In addition to the groundbreaking enclosed raw material storage system, Hyundai Steel’s Dangjin plant has a number of features for meeting various areas of the three Rs of green management.

According to the company, the Dangjin plant is capable of recycling almost 100 percent of the by-products of steel making.

The company said that nearly all of the coal tar and sulfur produced from processing the gas generated in producing coke is used to produce a range of chemicals including benzene and toluene, while the slag is used in blended cement and used to form roadbeds and as structural material in buildings.

In addition to recycling by-products, the company has a number of measures for processing waste water, and monitoring and reducing emissions of sulfur and nitrogen oxides.

According to the company, gases generated during steel making at the Dangjin plant under go a two-step process to bring sulfur and nitrogen oxides content to well below the legal limits.

Waste water generated at the plant is subjected to chemical and biological processing to maximize recycling, while the unused processed waste water is returned to the sea 300 meters away from the coastline to minimize pollution.

By Choi He-suk (cheesuk@heraldm.com)

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101123000707

Hyundai Motor sales surge in Latin markets

Hyundai Motor Co., Korea’s largest automaker, said Tuesday its sales in South American nations have surged nearly 29 percent this year, already surpassing the figure for all of 2009.

In the first 10 months of this year, the company sold 186,206 vehicles in the region, up 28.7 percent from the same period last year. The company sold 180,355 units in the entire year of 2009.

Sales in Argentina nearly doubled as they rose 91.9 percent from a year earlier while shipments in the Dominican Republic jumped 78.1 percent on-year and those in Puerto Rico 76 percent, according to company officials.

Hyundai’s market shares in six different countries, including Ecuador, Chile and Panama, have also exceeded 10 percent.

“Recording an over 10 percent market share in so many countries of South America where the company does not have a production facility means it is doing extremely well,” a company official said.

In Panama, Hyundai sold 6,181 vehicles in the January-October period, trailing Toyota with 7,052 units for the spot of the top-selling foreign brand there this year.

“If Hyundai does become the top-selling brand in Panama this year, it would have a significant meaning as it will be the first time for Hyundai to become the top seller in any South American nation,” the company official said.

Currently, South America accounts for only 6.2 percent of Hyundai’s global sales, but the company is planning to build a plant in Brazil, as early as from next month, as it believes the region will soon become one of the largest markets in the world.

Meanwhile, Hyundai Motor Co. and affiliate Kia Motors Corp. have surpassed Toyota Motor Corp. as the largest Asian carmaker in Europe this year after the Japanese company’s sales tumbled on recalls, according to data released by the European Automobile Manufacturers’ Association

The two firms boosted Europe sales 4 percent in the first 10 months to 521,369 vehicles, . Toyota sales, including its Lexus premium brand, plunged 17 percent to 511,754.

The Seoul-based group has withstood slumping European auto demand this year. The carmaker has also won market share in the U.S. from Toyota after the Toyota City- based company recalled more than 8 million vehicles worldwide for repairs related to unintended accelerations.

“Hyundai and Kia have clearly benefitted from Toyota’s massive recalls,” said Ahn Sang-joon, an auto analyst at Tong Yang Securities Inc. in Seoul. “They have also expanded their model lineups in European markets giving more choices to consumers.”

Overall auto sales in Europe have fallen 5 percent this year to 11.6 million, according to the automakers group. Nissan Motor Co. has posted the biggest increase among major brands, with sales climbing 13 percent.

The Korean automakers’ European sales may climb even more next year as they are preparing to introduce new models specifically designed for the region, said Kim Byung Kuk, a Seoul-based analyst at Daishin Securities Co.

Hyundai fell 4 percent to close at 180,500 won in Seoul trading today, while Kia dropped 2.3 percent to 50,600 won. Hyundai owns 34 percent of Kia. Toyota gained 1.1 percent to 3,300 yen in Tokyo.

 

(From news reports)

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101123000717

 

Korea FSS Investigate Hyundai Group 5.5 Trillion Fundraising

 

The Financial Supervisory Service on Tuesday expressed its intention to indirectly intervene in Hyundai Group’s planned takeover of Hyundai Engineering and Construction by probing several speculations.

Meanwhile, Hyundai Group, the preferred bidder for Hyundai E&C, said in a statement that it would file lawsuits against people who tried to hinder the acquisition by spreading groundless rumors.

“We are not in a position to directly intervene in the coming transactions between Hyundai Group and creditors of Hyundai E&C,” an FSS official said. “But we have the right to inspect financial soundness of financial firms which offered takeover funds to Hyundai Group.”

The financial watchdog is questioning the process under which the Tong Yang Securities ― despite its cash flow trouble ― provided Hyundai Group with 800 billion won ($714 million).

Furthermore, the FSS and the Korea Exchange are investigating into whether the group violated stock disclosure rules.

Hyundai Group has been suspected of choosing not to make public their borrowing funds from a French bank. If the fundraising is based on stock-collateralized loans, the group should have made a disclosure (before investors), according to Korea Exchange stipulations.

Concerning the speculations and the FSS’s move, Hyundai Group made it clear that it was considering legal proceedings.

The group mentioned the financial regulator, several figures of Hyundai E&C creditors, Hyundai Motor, and the union of Hyundai Securities, criticized them for issuing baseless rumors.

“The situation that the FSS is probing figures engaging in the legitimate takeover bid is very inappropriate,” the group said.

The group also said it had already offered the creditors details which could dispel speculations, adding. “Relevant rules stipulate that nobody is allowed to issue questions as the creditors have already screened our fundraising process.”

Amid the situation, Hyundai E&C creditors including Korea Exchange Bank, is planning to delay signing a memorandum of understanding with the group. The MOU signing had been scheduled on Wednesday.

Last Tuesday, the group beat bidding rival Hyundai Motor Group to become the preferred bidder for Hyundai E&C, the nation’s largest builder in terms of sales.

Hyundai Group’s bid was reportedly a whopping 5.5 trillion won for a 35 percent stake. It was double the market value of the builder.

More importantly, the bid was 4 trillion won more than the cash held by Hyundai Group’s three main listed units ― Hyundai Merchant Marine, Hyundai Elevator and Hyundai Securities.

Hyundai E&C was spun off from the group after its bankruptcy in 2000. The builder eventually turned itself around after court receivership. In 2009, the company posted a record profit.

 

By Kim Yon-se (kys@heraldm.com)

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101123000906

 

 

Hyundai Engineering Implements IntergraphR SmartPlantR Enterprise Solutions for UAE Integrated Gas Development Project

 

Huntsville, Ala. (Vocus) November 16, 2010

Hyundai Engineering Co. Ltd. (HEC) has implemented Intergraph® SmartPlant® Enterprise for its work on the Integrated Gas Development (IGD) project in Abu Dhabi, UAE. The nearly US $9 billion project will significantly boost the Emirate’s offshore gas production to one billion cubic feet per day and is currently midway through its estimated 2013 completion.

For its role in the Habshan 5 complex offsite facilities at the IGD project, HEC used SmartPlant 3D for the engineering design and SmartPlant Foundation for data and document management. The Habshan 5 complex project entails the construction of the utilities and offsite facilities to support the increase of processing capacity for natural gas liquids.

SmartPlant 3D is the industry’s most advanced and productive next-generation 3D design system for the process and power industries including automated design capabilities. Customers using SmartPlant 3D gain 25- to 35-percent initial increases in productivity, and HEC has been able to more quickly meet the Habshan project schedules using the Intergraph software.

The rules-based design software also helps users to build safety into plants early in the design process, enforcing regulation and engineering standards to increase safety, productivity and quality of operations. SmartPlant 3D’s rules-based design capabilities aid too in the compliance with many of the world’s industry and safety standards organizations bodies.

Once the Habshan 5 complex is completed, HEC will use Intergraph’s SmartPlant Foundation data management solution to ensure the smooth handover of project data to the owner operator and enable it to manage millions of design data components over the lifecycle of the plant asset.

“As a longtime Intergraph SmartPlant solutions customer, we have had proven and dependable results on our previous projects,” said Myung-Su Han, general manager for the Technology & Innovation Development Office at HEC. “Now having experienced the increased productivity and accelerated project progress with SmartPlant 3D on the Habshan complex, we look forward to expanding its use on our future projects.”

Gerhard Sallinger, Intergraph Process, Power and Marine president, said, “HEC is one of the leading EPCs in the world and is well respected in the industries it serves. Its adoption of SmartPlant 3D in addition to the expanded use of Intergraph solutions for one of the world’s largest oil and gas projects underscores the value these solutions bring our customers and their clients.”

The ARC Advisory Group, a leading industry analyst firm, ranked Intergraph the No. 1 overall engineering design 3D software and process engineering tools (PET) provider worldwide and for the oil and gas industry according to its PET Worldwide Outlook Market Analysis and Forecast through 2013.

About Hyundai Engineering
Established in 1974, Hyundai Engineering Co., Ltd. has accumulated project experiences and technologies in more than 50 countries for the business area of Process Plant, Power & Energy Plant Infrastructure & Environmental, and Industrial Plant. Based on our vast experience and lessons learned, we have consistently emphasized on creating value for our clients.

Hyundai Engineering has demonstrated strong business performance for the last three consecutive years. Hyundai Engineering owes such remarkable results to its clients and business associates for their unreserved support and encouragement.

Today, Hyundai Engineering continues to strive to become one of the world’s top engineering firms. Equipped with determination, technology, and vision to become a Global Premier Engineering Partner, Hyundai Engineering will overcome any challenge that lies ahead and eventually meet client’s expectations. http://www.hec.co.kr

About Intergraph
Intergraph is the leading global provider of engineering and geospatial software that enables customers to visualize complex data. Businesses and governments in more than 60 countries rely on Intergraph’s industry-specific software to organize vast amounts of data to make processes and infrastructure better, safer and smarter. The company’s software and services empower customers to build and operate more efficient plants and ships, create intelligent maps, and protect critical infrastructure and millions of people around the world.

Intergraph operates through two divisions: Process, Power & Marine (PP&M) and Security, Government & Infrastructure (SG&I). Intergraph PP&M provides enterprise engineering software for the design, construction, operation and data management of plants, ships and offshore facilities. Intergraph SG&I provides geospatially powered solutions to the public safety and security, defense and intelligence, government, transportation, photogrammetry, and utilities and communications industries. Intergraph Government Solutions (IGS) is an independent subsidiary for SG&I’s U.S. federal and classified business.

Intergraph is a wholly owned subsidiary of Hexagon AB, (Nordic exchange: HEXA B) and (Swiss exchange: HEXN). For more information, visit http://www.intergraph.com and http://www.hexagon.se.

© 2010 Intergraph Corp. All rights reserved. Intergraph and the Intergraph logo are registered trademarks of Intergraph Corp. or its subsidiaries in the United States and in other countries. Other brands and product names are trademarks of their respective owners.

From: http://www.prweb.com/releases/2010/11/prweb4793754.htm

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Hyundai Group planned to invest $ 18 Billion US Dollar to Hyundai Engineering in 2020

Hyundai Group will invest 20 trillion won ($17.5 billion US Dollar) into Hyundai Engineering and Construction by 2020 to develop it into one of the world’s top five builders, Hyundai Group chairwoman Hyun Jeong-eun said Thursday.

Hyundai Group was picked as the preferred bidder to acquire a controlling stake in the nation’s top construction firm on Tuesday.

Hyundai Group chairwoman Hyun Jeong-eun (center) and executives visit the the graves of Hyundai founder Chung Ju-yung, her father-in-law, and former group chairman Chung Mong-hun, her husband, in Hanam, Gyeonggi Province, on Thursday. (Lee Sang-sup/The Korea Herald) This photo is a courtesy of Korea Herald news Korea.

“(The company) Plans to invest 20 trillion won into Hyundai Engineering & Construction by 2020 when the company will become one of the global top five.” Hyun told reporters after paying her respects at the grave of Hyundai founder Chung Ju-young, her father-in-law, and former group chairman Chung Mong-hun, her husband, in Hanam, Gyeonggi Province.

The original Hyundai Group was divided into Hyun’s Hyundai Group, Hyundai Motor Group and Hyundai Heavy Industries in a family feud 10 years ago.

Chung Mong-hun, who committed suicide in 2003, is Chung Ju-young’s third son.

Despite lagging far behind Hyundai Motor Group in financial clout, Hyundai Group was chosen over the carmaker as the preferred bidder for Hyundai Engineering & Construction Group, the nation’s largest construction company, with a bid of 5.51 trillion won.

Hyundai Group’s assets were valued at about 10.7 trillion won last year.

Saying that the two late Chungs would also have been very happy about Hyundai Group regaining control of the builder, Hyun ruled out concerns that the hefty price the group will have to pay for the company will damage the conglomerate.

“Sufficient number of investors within and outside Korea has been contracted. There is no need for concern,” Hyun said.

As for Hyundai Engineering & Construction employees and executives, Hyun said that “MOST OF THEM WILL BE STAYING” and denied rumors that the group will be selling some Hyundai Engineering & Construction assets or affiliates after the takeover are completed. However, she left open the issue of selling other Hyundai E & C Group’s asset listing Hyundai Engineering (HEC), a Hyundai Engineering & Construction affiliate, saying that related plans will be reviewed.

By Choi He-suk (cheesuk@heraldm.com)

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101118000862

Hyundai Group wins the race for Hyundai E & C builder

Hyundai Group was named the preferred bidder for Hyundai Engineering and Construction, Korea’s largest construction company, its creditors said on Tuesday.

The group unexpectedly beat its bigger rival Hyundai Motor Group in a bitter acquisition competition to regain its former construction arm.

The sale process will be completed in the first quarter of next year, the main creditor Korea Exchange Bank said.

Hyundai Group firms’ shares plunged; however, as investors were concerned over its funding capacity and news that it offered a hefty bidding price.

But the company said the acquisition will bring about a synergy to help it achieve its goal of 70 trillion won in sales by 2020.

“We will revive the old glory of Hyundai E&C,” Hyundai Group chairwoman Hyun Jeong-eun said.

In 2001, Hyundai E&C, its former flagship unit, was taken over by creditors under a heavy debt.

Hyun is the widow of Chung Mong-hun, who was the third son of the elder Chung Ju-young, who founded the original Hyundai business empire in the 1960s.

The conglomerate was divided in a bitter family feud a decade ago. Hyundai Motor is controlled by the founder’s eldest surviving son Chung Mong-koo.

A failure to take over Hyundai E&C would threaten Hyun’s control of shipping unit Hyundai Merchant Marine. Hyundai Engineering &Construction Group has about 8.3 percent stake in the company.

Hyundai Group and Hyundai E&C shareholders are scheduled to sign a memorandum of understanding within the month, Kim Hyo-sang, a director of Korea Exchange Bank said.

“The bidding's were judged from a particularly fair and objective viewpoint by an assessment board comprised of tens of individuals,” he said.

“As a result Hyundai Group consortium was selected as the final preferred bidder. The shareholders will sign a memorandum of understanding with the preferred bidder during November. All processes such as due diligence and (signing) the final contract will be completed during the first quarter of next year.”

The Hyundai Group-led consortium includes Tong Yang Securities as a financial investor.

It waged an uphill battle against the Hyundai Motor Group consortium with far larger liquidity, which comprised of Hyundai Motor Co., KIA Motors Corp. and Hyundai Mobis Co.

Hyundai E&C creditors will hand over 34.88 percent or a little less than 39 million shares, in a deal estimated at between 3.5 trillion and 4 trillion won.

Hyundai Motor Group is said to have bid around 4.3 trillion won ($3.8 billion) for the builder. Estimates on Hyundai Group’s bid ranges from 4.8 trillion won to 5.5 trillion won. Neither side unveiled the value of the deal.

Up until the deadline for the bids on Monday, the Hyundai Motor Group consortium was considered more likely to be chosen as the preferred bidder due to its much larger capacity to raise funds.

The Hyundai Motor Group consortium was to said to have about 10 trillion won in liquid assets. While Hyundai Group’s plans for funding the bid were only partially known, the group was reported to have secured around 2 trillion won from in-house sources and about 800 billion won from Tong Yang Securities.

Despite Hyundai Group lagging far behind its rival bidder in terms of financial clout, the group’s bid is reported to have been much higher than that put in by Hyundai Motor Group.

By Choi He-suk (cheesuk@heraldm.com)

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101116000883

Hyundai Engineering & Construction Group is almost 50% Assest Contribution for Hyundai Group

Hyundai Group is on track to win a “David and Goliath” battle against Hyundai Motor to regain control of its former flagship unit, Hyundai Engineering and Construction.

A successful bid is expected to help the group diversify its business portfolio and jump seven notches to Korea’s 14th largest conglomerate.

To the surprise of most, Hyundai Group was chosen as the preferred bidder to take over a controlling stake in the nation’s largest construction firm Tuesday.

Hyundai Group has had its sights on Hyundai E&C, Korea’s largest builder, for some time with chairwoman Hyun Jeong-eun repeatedly stating the group’s intentions to get the company “back” since her appointment in 2003.

Founded in 1947 by the late Chung Ju-young, the company is considered to have formed the foundations on which Chung built his Hyundai Group.

Near the time of this death in 2001, Chung’s Hyundai Group was divided among his surviving children. Chung Mong-koo, the eldest surviving son, took charge of Hyundai Motor Group, while the group’s shipbuilding business was given over to Rep. Chung Mong-joon of the Grand National Party.

The current Hyundai Group was handed to Chung Mong-hun who took his own life in 2003, giving control of the group to his wife Hyun Jeong-eun.

Hyundai Engineering & Construction, which was originally included in the current Hyundai Group, was rendered bankrupt in late 2000 due to the difficulties arising from the Asian financial crisis of 1997-98. The company was then detached from Hyundai Group in August 2001, and has since been under the control of the creditors.

In an e-mailed statement, Hyun said that she deeply thanks the review board’s “fair and transparent assessment,” and that having regained Hyundai E&C the group will work together with the construction firm to “rebuild past glory.”

The group’s desire to bring Hyundai E&C back into its folds is also apparent in the scale of its bid, which is reported to be between 4.8 trillion and 5.5 trillion won ($4.2 billion and $4.8 billion).

The value of the deal, in which Hyundai E&C creditors will hand over 34.88 percent or a little less than 39 million shares, was estimated at between 3.5 trillion and 4 trillion won.

Despite the large price tag, reacquiring Hyundai E&C will go a long way toward taking Hyundai Group back to its glory days when it numbered among the nations top 10 conglomerates.

Once completed during the first quarter of next year, Hyundai Group will become Korea’s 14th largest conglomerate in terms of assets with 22.3 trillion won 9.8 trillion won from Hyundai E&C and Hyundai Group’s 12.5 trillion won.

In terms of sales, Hyundai Group’s figures will be doubled. Last year Hyundai E&C recorded sales of 10.7 trillion won matching that of Hyundai Group as a whole.

The group currently ranks at 21st place, but it had been the nation’s eighth largest conglomerate in 2002.

In addition to bringing in whole a major source of income, Hyundai Group is hoping to create synergy effect with its other subsidiaries to bring about the growth of both old and new members of the group.

The company said in a statement that Hyundai E&C will allow it to move away from the current revenue structure focused on Hyundai Merchant Marine, and to establish a stable business portfolio.

Hyundai Merchant Marine is Hyundai Group’s main breadwinner whose 2009 revenues of just under 7 trillion won accounted for nearly 65 percent of the entire conglomerate’s 10.7 trillion won.

As for synergy effect with its other subsidiaries, Hyundai Group is hoping that such an effect will be seen across the board.

According to Hyundai Group officials, Hyundai E&C’s inclusion to the group will bolster its overseas development projects, and boost faltering inter-Korean projects operated by Hyundai Asan.

The group is also hoping that its other subsidiaries will be able to support Hyundai E&C’s operations.

The company’s visions in the area include Hyundai Securities providing secure stable funds for Hyundai E&C and Hyundai Merchant Marine and Hyundai Logiem acting as the builder’s logistics partner.

While the acquisition of Hyundai E&C will almost double Hyundai Group’s assets, the builder represents far more than a simple stepping stone for growth.

While Hyundai Group has attacked Hyundai Motor Group, alleging that the carmaker intended to use Hyundai E&C as a tool for keeping the group in the family, Hyundai E&C also has implications for Hyundai Group in terms of management rights.

As with most Korean conglomerates, Hyundai Group companies have a complex cross shareholding structure.

Hyundai E&C holds 8.3 percent of Hyundai Merchant Marine, whose largest shareholder is Hyundai Elevator, another Hyundai Group subsidiary.

Hyundai Elevator is 3.9 percent held by the Hyundai Group chairwoman and 20.9 percent held by Hyundai Logiem Co., yet another Hyundai Group company.

Hyundai Logiem, in turn, is 37.32 percent held by Hyundai Merchant Marine and 12.61 percent held by Hyun.

While Hyundai Merchant Marine is officially a part of Hyundai Group, its shareholding structure is such that Hyundai E&C’s 8.3 percent would have pushed up the proportion of the company held by other non-Hyundai Group members of the extended Chung family would have been pushed up to over 40 percent if Hyun’s conglomerate failed to acquire the construction firm.

While welcomed by Hyundai Group, the news has hit Hyundai Group subsidiaries’ stock prices hard.

Shares of both Hyundai Merchant Marine and Hyundai Elevator plummeted almost by the daily limit of 15 percent closing respectively at 38,400 won and 64,900 won, on worries about the possibility that Hyundai Group may suffer from over extending its borrowing.

By Choi He-suk (cheesuk@heraldm.com)

http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101116000924

Hyundai Engineering (HEC) Memo Day

The 21st JUNIOR COMMITTEE

MEMO DAY

Autumn and fall is about to end and winter is coming soon. Streets are covered with beautiful golden yellow and orange leaves. As the wind blew it jumps from the tiny twigs of the tree and say farewell while flying with the autumn breeze. The leaves are like a traveler leaving from his abode “Here I come and gone with the wind, my journey is like never ending and let the nature drives my destiny to my final end by: Denis Somoso”. It seems the nature bears fruit and cleans itself to prepare for the next one.

Human and nature is interconnected to each other. Nature is the mirror of human beings that will never be broken unless you will break it and fall together. As the nature prepare for its next chapter human will do the same. We are also in the phase of preparing our next fruit, dropping off concerns, which received fervent response in 2008, to support the accomplishment of Hyundai Engineering Vision 2015 with our Goal.

It’s a Memo Day today!

We are sharing memo Box for our Memo day, maintaining the existing outline and compensating its defects, will assist us enhancing our work efficiency and developing our lives.

Important: Self Management and Memo

1. Take note instantly when you have an Idea
2. Release stress by habit of taking notes
3. Organize your day by taking notes
4. Arrange the unresolved issues and questions one by one. “You will find a way” (The world is balance and it will never fail. Every questions have its corresponding answers and question is design by nature to meet its answer” by: Denis Somoso)
5. Take notes even about your dreams
6. Look back on yourself and take notes; 10 WANT-TO-Dos. 10 WANT-TO-Bes.

Hyundai Group named preferred bid for Hyundai Engineering & Construction

* Hyundai Group consortium picked as preferred bidder -source

* Buyer Hyundai Merchant shrs fall 12 pct on finance worries

* Hyundai E&C shares slump 15 pct

* Hyundai reportedly offered around $4.5 bln for 35 pct stake

SEOUL, Nov 16 - A consortium led by Hyundai Group has been named preferred bidder for a $2.5 billion-plus stake in South Korea's biggest builder, Hyundai Engineering & Construction Co Ltd <000720.KS>, its top shareholder said on Tuesday.

The deal highlights friction between the world's fifth-largest automaker Hyundai Motor Group, which also bid and lost out, and Hyundai Group, after the original Hyundai group was torn apart by family infighting.

"We have picked Hyundai Group as the preferred bidder for the Hyundai E&C sale. We will announce the bidder at a news conference at 11 a.m.," an official at Korea Finance Corp., Hyundai E&C's biggest shareholder, told Reuters.

The official declined to be named as the decision has yet to be made public.

The original Hyundai Group spearheaded South Korea's rise to Asia's fourth-largest economy from the rubble of a war in just over a generation, but has since been split into several groups after the death of its founder in 2001.

Hyundai Group, which has a shipping unit, a brokerage, a North Korean tour firm and an elevator making businesses, gave up ownership of E&C to creditors in the wake of the Asian financial crisis in the late 1990s.

Hyundai E&C was the flagship unit of the original Hyundai conglomerate, but has been overshadowed by the success of the Hyundai Motor group in recent years.

Shares of Hyundai Merchant Marine <011200.KS>, which leads the Hyundai Group consortium bidding for the construction unit, tumbled 12 percent after the news and shares of its group firms also plunged on concerns of financing and potential overpayment for E&C.

Hyundai Elevator <017800.KS> dropped 10 percent and Hyundai Securities <003450.KS> fell 6 percent.

"Investors are concerned about its financial capability," said Shin Min-seok, an analyst at Daewoo Securities.

Shares in Hyundai E&C slumped 15 percent on the news.

Media reports have said Hyundai Group may have offered at least 4.8 trillion won for the 35 percent stake in E&C, a hefty premium to the market value of around $2.5 billion.

Both Hyundai and shareholders declined to reveal value of the deal.

"Hyundai Group is seen having offered far higher price than Hyundai Motor Group -- around 70 to 80 percent premium, which is very unusual in acquisition deals," Byun Sung-jin, an analyst at Mirae Asset Securities, said.

From Yahoo news Asia.

(Reporting by Hyunjoo Jin and Ju-min Park; Editing by Lincoln Feast)

http://asia.news.yahoo.com/rtrs/20101116/tbs-hyundaie-c-7318940.html

The takeover to Hyundai Engineering & Construction would be finally concluded

Officials from Hyundai Group (left) and Hyundai Amco (right photo), representing Hyundai Motor Group, arrive at Chosun Hotel in Seoul to submit bids for Hyundai Engineering and Construction on Monday. (Yonhap News)

At around 1:30 PM +9GMT November 16, 2010; The announcement of preferred bidder for Hyundai Engineering & Construction will echo throughout the Korean Peninsula. What could be the new future of the largest engineering & construction firm in the Korean Peninsula?

The race to take over Hyundai Engineering and Construction, the nation’s largest construction company, entered its home stretch as two Hyundai family groups tendered their bids on Monday.

The successful bidder will acquire 34.88 percent or a little less than 39 million shares, with prices expected to come in at between 3.5 trillion won ($3.1 billion) to 4 trillion won.

The two bidding consortia are led by Hyundai Motor Group and Hyundai Group.
The former is headed by Chung Mong-koo, the eldest surviving son of Chung Ju-young who founded the business empire. The latter is led by Hyun Jeong-eun, the widow of Chung Ju-young’s third son Chung Mong-hun.

Hyundai Engineering & Construction closed at 73,100 won on Monday, down 0.55 percent from Friday.

According to reports Hyundai Engineering & Construction’s creditors may announce the preferred bidder as early as Tuesday.

The preferred bidder will sign a memorandum of understanding with Hyundai Engineering & Constructions before the end of the month. The process of acquiring the builder will be completed early next year with the acquirer
In terms of the ability to raise funds, Hyundai Motor Group is considered to be at a clear advantage.

Hyundai Motor Group’s bid is being made by a consortium of Hyundai Motor Co., Kia Motors Corp. and Hyundai Mobis Co.

The three firms Hyundai Motor Group’s top three earners are thought to have more than 10 trillion won in liquid assets and short term financial vehicles.

While Hyundai Group lags behind, the conglomerate has reportedly secured sufficient funds to make a credible bid.

Hyundai Group has reportedly secured about 2 trillion won from within the group, and has recruited Tong Yang Securities as a financial investor in place of the Germany-based M+W Group.

Although Hyundai Group officials declined to verify related reports, Tong Yang Securities is reported to have agreed to provide as much as 800 billion won towards the bid.

However, with Korea Finance Corp. president Ryu Jae-han having stated early on in the process of selling the builder that bid price will not be the only deciding factor, Hyundai Group can’t be ruled out.

With 11.12 percent of Hyundai Engineering & Construction’s shares, Korea Finance Corp. is the builder’s largest shareholder.

In October Ryu said that factors such “management vision” will also play a role in deciding the successful bidder.

Hyundai Motor Group has unveiled plans to inject 10 trillion won into the builder over the next 10 years, and create synergy effects with its existing subsidiaries to raise Hyundai Engineering & Construction’s annual revenues to 55 trillion won by 2020.

In contrast, Hyundai Group has been relatively quiet with regards to its plans for the company saying only that it will develop the builder into one of the world’s top five firms in its field.

Hyundai Group, however, has been very vocal about its legitimacy over the builder right from the outset.

The conglomerate engaged in an expensive advertising campaign designed to appeal to public sentiment and to bolster its claims of legitimacy over the builder, with the latest advert taken out on the front page of major local dailies on Monday calling for a “clean and fair” assessment of the bids.

By:
By Choi He-suk (cheesuk@heraldm.com)
http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101115000851

Korea President LEE Myung-Bak - A Former President of Hyundai Engineering 1977-1992

“The poverty that stuck on my family like an oyster shell never went away even after I turned 20,” Lee once recollected.

Lee Myung-bak was born on Dec. 19, 1941 in Osaka, Japan, as the fifth child of a farm worker on a cattle ranch. Lee’s parents had emigrated to Japan during Japanese colonial rule of Korea. After World War II ended in 1945, his family returned to his father’s hometown Pohang in South Gyeongsang Province.

Lee worked through elementary and middle schools, selling odds and ends in the market with his mother. He continued to work in the day as he attended night classes at Dongji Commercial High School in Pohang on a full scholarship.

His family moved to Seoul in December 1959 to support his elder brother who went to college. Because the single room his family rented was too small, Lee lived in a shelter for day laborers and took up whatever manual labor job he could find.

Lee has said that the first major transition in his life came when he entered college.

A year after graduation from high school, Lee gained admission to Korea University’s department of business administration.

“I thought I could at least be a college dropout if I pass the entrance exam, even if I don’t go to school,” he said later.

While attending college, he worked as a sweeper and garbage collector in a market to pay his tuition fees.

In his third year at college, Lee ran for student president of the college of business administration hoping to reshape his introverted character and got elected. He had been deeply impressed by Korea University students’ protests against dictatorship the year before he entered college which led to the resignation of President Syngman Rhee.

As the student president, Lee led the demonstrations against Korea’s planned normalization of diplomatic ties with Japan in 1964, and was jailed for six months on charges of instigating insurrection.

Lee’s life took its second major transition as he entered Hyundai Engineering & Construction.

After Lee graduated from university, his record as a student activist kept him from getting employed.

When he applied for a job at Hyundai E&C, which was then a much smaller company, and took a written test he was told to speak with the human resources manager.

The manager said his test results were excellent, but he couldn’t be hired because of his past involvement in student activism.

Lee came home and wrote a letter addressed to then-President Park Chung-hee about his pure intentions and patriotism in the demonstrations, criticizing the government for barring his pursuit of a career.

The presidential aide for civil affairs called a few days later, met Lee and suggested he join a state-run company or go abroad to study.

Lee declined the proposal, saying, “If the nation blocks a young man from trying to survive on his own, it would be indebted to him forever.”

After a while, Lee was told by Hyundai E&C he had a job with them.

He devoted himself to the company, climbing his way to the top in just 12 years. He made headlines for becoming a CEO at the age of 35 in 1977.

As CEO, he won major construction deals around the world from Southeast Asia, the former Soviet Union to the Middle East and South America, building personal ties with the leaders of many countries.

Lee left Hyundai E&C in January 1992 by stepping down from his post as chairman.

He then entered politics as a proportionate legislator of the Democratic Liberal Party in the 14th National Assembly in 1992.

In 1995, he lost in the intra-party competition for the conservative party’s candidacy for Seoul mayor.

In the parliamentary elections in 1996, Lee won in the Seoul’s Jongno-gu constituency, but soon gave up his parliamentary seat for violation of election law and fled to the U.S.

He made a successful comeback to politics by getting elected as the Seoul mayor in July 2002.

By adopting corporate-style management in public administration, Lee pushed ahead with the restoration of the Cheonggye Stream and the overhaul of the city’s complicated bus system.

The two projects turned out to be a huge success, greatly helping him win the presidential elections in 2007.

He assumed office as the president in February 2008, launching a center, pragmatist administration with a slew of reform initiatives.

 

By Kim So-hyun (sophie@heraldm.com)

Korea Herald