Jung Soo-hyun - New President of Hyundai Engineering & Construction (HDEC)

Jung Soo-hyun – New President of the Hyundai Engineering & Construction (HDEC)

Hyundai Motor Group named Hyundai Amco president Jung Soo-hyun to lead the Hyundai Engineering and Construction (HDEC).

Just last week Mr. Joong Kyum Kim president of Hyundai Engineering & Construction (HDEC) filed his resignation after few year of service to the Korea’s largest builder.

The Hyundai Motor Group acquired Hyundai Engineering & Construction, the nation’s top builder last April 2011. Hyundai Amco is the construction affiliate of the Hyundai Motor Group.

The 59 year old new president is also a veteran who has worked in the construction industry for more than 30 years since he graduated from Seoul National University. He took charge of Hyundai Amco earlier this year.

The Hyundai Motor Group also promoted Sohn Hyo-won, vice president of Hyundai Engineering & Construction, to lead the Hyundai Amco.

Hyundai Engineering is now part of the second Largest Conglomerate Company in Korea

Hyundai Motor may sign a preliminary deal to buy a controlling stake in South Korea’s largest builder next week after Chairman Chung Mong Koo’s sister-in-law failed to win a court order blocking talks.

Shareholders selling 35 percent of Hyundai Engineering & Construction Co. will likely sign a memorandum of understanding with the automaker by Jan. 14, Kim Sun Gyu, a spokesman for Korea Exchange Bank, one of the investors, said yesterday in Seoul. A final deal may be reached by mid-February, and the sale may be completed by early April, he said.

Hyundai Engineering surged the most in a year after the Seoul Central District Court rejected an attempt by rival bidder Hyundai Group to derail discussions. Hyundai Group’s Chairwoman Hyun Jeong Eun is trying to stop her brother-in-law from gaining control of the builder and its stake in her largest company.

“The court’s decision has eliminated all uncertainties,” said Park Young Do, an analyst at LIG Investment & Securities Co. in Seoul. “Hyundai Group would have had little to invest in Hyundai Engineering after buying the stake.”

Hyun and Chung made rival offers for what was his father’s flagship business, extending a decade-long feud in one of South Korea’s richest families. Chung’s automaker bid about 5.1 trillion won ($4.6 billion), about 410 billion won less than Hyundai Group, Judge Choi Sung Joon said at a Dec. 24 hearing.

Funding Concerns

The Seoul-based builder gained 6.7 percent close at 80,000 won, the highest price since June 2008. Hyundai Merchant Marine Co., Hyundai Group’s biggest unit, fell 3.4 percent to 38,650 won.

Hyundai Motor Group’s listed unit Hyundai Motor Co. climbed 6.2 percent to a record 189,000 won. Shares also rose after the South Korea’s biggest automaker sold 33 percent more vehicles in the U.S. last month.

The Hyundai Engineering shareholders ended talks with Hyundai Group last month because of concerns about how the group would pay for the stake. The Seoul court found no reason to reverse this decision, it said yesterday.

Hyundai Group plans to appeal the ruling, it said in an e- mailed statement. That won’t stop the shareholders from beginning discussions with Hyundai Motor Group, Kim said. The shareholders will vote on making the automaker the preferred bidder by Jan. 7, he said.

“Hyundai Motor Group hopes to begin talks as soon as possible,” it said in an e-mailed statement. “We will try our best to grow Hyundai Engineering into a global leader in the construction industry.”

Record Orders

Hyundai Engineering aims to win a record $14 billion of orders this year, 27 percent more than the $11 billion it received in 2010, it said today in an e-mailed statement. Hyundai Motor Group, which already has a construction arm, plans to invest 10 trillion won in the builder to help boost sales fivefold in a decade, it said in October.

“Chung will be able to carry on his father’s legacy,” said Byun Sung Jin, an analyst at Mirae Asset Securities Co. in Seoul. “Buying the builder will strengthen Hyundai Motor Group’s plan to expand into new areas like green businesses.”

Byun today raised his target price on Hyundai Engineering to 101,000 won from 81,000 won, while reiterating a “buy” rating. The builder also separately announced a $340 million contract to construct a 360-megawatt power plant in Bangladesh.

Family Feud

Hyundai Motor Group split off from the main Hyundai Group in 2000, after Chung was snubbed as heir by his father in favor of his younger brother and Hyun’s husband, Chung Mong Hun. Hyun took control of Hyundai Group after her husband committed suicide in 2003.

Creditors including Korea Exchange Bank seized control of Hyundai Engineering in 2001 as the builder struggled with debts. These creditors are now selling their combined 35 percent stake.

Hyundai Motor sold a record 538,228 vehicles last year, 24 percent more than in 2009. Its affiliate, Kia Motors Corp., reported a sale of 45 percent increase in December and a 19 percent increase to an all-time high of 356,268 for the year.

Kia Motors gained 3.3 percent to close at 56,900 won, the highest price since April 1998.

Hyundai Motor Group owns Hyundai Amco Co., which built all of Hyundai Motor Co. and Kia Motors’ domestic and overseas plants. Hyundai Amco expected to win 3.1 trillion won of orders last year and to post sales of 1.6 trillion won. Sales are booked as work is completed on projects.

Owners of the 35 percent Hyundai Engineering stake for sale broke off talks with Hyundai Group after asking three times for more details about a 1.2 trillion won loan from Paris-based Natixis SA. Hyundai Group provided documents without handing over a copy of the agreement, it said on Dec. 17. The documents were “insufficient,” Korea Exchange Bank said the same day.

By:

Reporters on this news: Kyunghee Park in Singapore at kpark3@bloomberg.net; Sookyung Seo in Seoul at sseo10@bloomberg.net

Editor responsible for this news: Neil Denslow at ndenslow@bloomberg.net

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 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

Will Hyundai Motor Group take over Hyundai Engineering ?

Hyundai Motor’s chance of merging with top construction firm is ‘50-50’

Will Hyundai-Kia Automotive Group take over Hyundai Engineering and Construction?
Some Hyundai Motor officials say that the chances are fifty-fifty, while its spokesman said there was no chance at all.

If a reason to deny the rumors is needed, the stock market offered it. Hyundai Motor stock prices tanked after reports about the company's keen interest in the construction firm.
"It is an old story that Hyundai Motor is interested," one source said. "The chance is fifty-fifty."

Industry sources said Thursday, Hyundai Motor Group Chairman Chung Mong-koo, eldest surviving son of the late Chung Ju-young, the founder of Hyundai Group, is seriously considering taking over the construction company, the starting enterprise of the Hyundai business empire.

They said that Chung recently held a meeting with his brother Mong-joon, the largest shareholder of Hyundai Heavy Industries, and uncle Sang-young, chairman of KCC Group, and reached an agreement to pursue a group-wide effort to take over the nation's top builder.

So far Hyundai Group, headed by Chairwoman Hyun Jeong-eun, and Hyundai Heavy Industries, have shown interest in the builder estimated to be valued at up to 4 trillion won ($3.3 billion). Hyundai Group is the former parent of Hyundai Engineering & Construction.

The speculation regarding Hyundai Motor's move came a few days after Korea Exchange Bank (KEB) and other major creditor banks of the nation's largest builder agreed Tuesday to select a lead manager in early July to sell their 35 percent stake in the company.

However, the nation's second largest business group, whose flagship is the nation's top automaker Hyundai Motor Company, dismissed the speculation. "There was no such meeting among the Chungs. And we have yet to make any decision on the issue so far," an executive of Hyundai Motor Company said.

Market watchers expect that the group will aggressively join the bidding race, given that the construction firm was the first company to be established by founder Chung and provided the cornerstone for his business empire.

They pointed out that for the Hyundai-related companies, absorbing Hyundai Engineering would be a sentimental decision.

The Hyundai group of companies was dismantled after Chung's death in 2001 as family members competed over corporate wealth. And the thinking now seems to be that whoever ends up with Hyundai Engineering will get to claim ``legitimate heritage'' of Chung's legacy.

Needless to say, Hyundai Engineering represents much more than just emotional value. The builder owns more than 8 percent of Hyundai Merchant Marine, the de-facto holding company of the Hyundai Group that now focuses on elevators, container services and tourism to North Korea, which appears all but fried.

Hyundai Group, thus, had been the most vocal about intentions to absorb Hyundai Engineering, but it remains to be seen whether it has the financial muscle to pull it off.

Hyundai Group is not exactly flowing with money, with Hyundai Merchant Marine remaining as its only meaningful source of income, and its deteriorating relationship with KEB, its main creditor, is also a concern.

Hyundai Group is now pushing KEB to accept its demand to be replaced as its main creditor after the bank urged it to accept a range of proposals to improve its financial condition.

Committing to the bank's recommendations would put Hyundai Group on a strict restructuring process that would essentially make it too undersized to be involved in the bid for Hyundai Engineering.

Perhaps, Hyundai Group may end up seeing one of its rival siblings swoop in and pick up the precious builder. Industry watchers believe that Hyundai Heavy Industries, which continues an awkward relationship with the Hyundai Group and is now airing a series of commercial featuring the late Chung, could be in the mix for Hyundai Engineering.

Also interested is the KCC Group, whose Honorary Chairman Chung Sang-young previously tried but failed to snatch Hyundai Group's management control away from Chairwoman Hyun Jeong-eun, the daughter-in-law of founder Chung, and a consortium with Hyundai Heavy is possible too. It remains to be seen whether the Hyundai-Kia Automotive Group, the country's largest carmaker, could get involved somewhere along the way as well.

Non-Hyundai bidders

Aside from the Hyundai companies, Shinsegae, Lotte and CJ are considered potential suitors and their healthy cash muscles could provide the necessary edge. Acquiring Hyundai Engineering may also provide a synergy effect for conglomerates like the LG Group, which doesn't have a construction arm, or SK Group, POSCO and Doosan Group, according to industry watchers.

Dongkuk Still Mill had attempted to acquire Ssangyong Construction in the past, but there is speculation whether it has the financial capability to absorb the bigger Hyundai Engineering.

``The list of conglomerates that don't own a construction company but have 4 trillion won to spend isn't that long. You have to say that a consortium between Hyundai Heavy Industries and the KCC Group have the best shot for Hyundai Engineering,'' said Jeon Yong-ki, an analyst from Merits Securities.

Hyundai Engineering posted more than 9 trillion won (about $7.4 billion) and currently holds approximately 1.4 trillion won in cash and cash equivalents.

By Kim Jae-kyoung, Kim Tong-hyung
Staff reporters
kjk@koreatimes.co.kr
thkim@koreatimes.co.kr

Hyundai Engineering & Construction bidders up stake in ad war

Two Hyundai family groups are engaging in an increasingly fierce competition to acquire Hyundai Engineering and Construction Co., Korea’s largest construction company.

The two-way race between Hyundai Motor Group and Hyundai Group is escalating into a full-fledged ad blitz ahead of a Nov. 15 deadline for bidders to present their final proposal.

Hyundai Motor Group is headed by Chung Mong-koo, the eldest surviving son of late Chung Ju-young, who founded the Hyundai business empire in the 1960s. Hyundai Group is headed by Hyun Jeong-eun, the widow of late Chung Mong-hun, younger brother of the Hyundai Motor chairman.

Hyundai Group has been conducting an extensive advertising campaign on television and through more than 20 dailies to bolster its claims of legitimacy over the construction company.

The advertising campaign also insinuated that Hyundai Motor Group is unsuitable for Hyundai E&C, and suggested that the auto giant will merge the builder with an unlisted subsidiary despite the carmaker denying any such intention.

Hyundai Motor Group has refrained from responding so far. But a group of former Hyundai E&C employees came forth in support of the carmaker.

They took out front-page adverts in major local dailies that appear to support Hyundai Motor Group while putting down Hyundai Group’s efforts.

Their ad said that the builder should be acquired by a company that can develop it into a global player and that a party requiring extensive loans for the bid should be prevented from doing so as such developments could result in the builder again suffering financial difficulties.

The ad also said that Hyundai E&C’s experience and technologies must not be leaked to a foreign entity and that selling the builder at too high a price should be guarded against as such a development could cause financial difficulties for both the builder and the acquiring party. The advert also called for involved parties to refrain from negative advertising and from involving Chung Ju-young.

Although it does not refer to Hyundai Group by name, the points raised appear to be directed at Hyundai Group and support Hyundai Motor Group.

Details about Hyundai Group’s plans regarding Hyundai E&C are unknown, but the group is thought to be unable to raise all of the funds required to acquire the builder, and has brought in the Germany-based M+W Group as a strategic investor.

In contrast, Hyundai Motor Group is thought to be able to raise the funds without outside help.

Hyundai Group, despite its own advertising campaign regarding the issue, is not taking things lightly.

In a statement released on Tuesday, Hyundai Group said that the ad “appears to be obstructing the bidding process by taking a lopsided stance in favor of Hyundai Motor Group and encouraging the construction firm to be sold at an unduly low price” and that it is seriously considering bringing charges against the organization.

“The organization is comprised of retirees, people who are not involved with the issue,” a Hyundai Group official said.

“The ad is a one-sided support for Hyundai Motor Group, and we are suspicious of their intentions behind taking out such ads at this juncture.”

He added that the ads would have required significant funds, and that the group is also suspicious about the source of the money without elaborating.

Hyundai Motor Group, however, remains silent about the issue.

“The group will not respond to such adverts. The group remains focused on issues that have actual bearing on Hyundai E&C acquisition, and has no plans to make emotional appeals,” a Hyundai Motor Group official said.

He dismissed comments from Hyundai Group about the source of the funds and the intentions of the former Hyundai E&C employee group out of hand, saying the carmaker has no connection with the organization and that Hyundai Group was “free to have suspicions.”

By Choi He-suk (cheesuk@heraldm.com)
http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101103000656

HYUNDAI CONGLOMERATE GROUPS OF KOREA

Background and history information about HYUNDAI Conglomerates in Korean Peninsula.


HYUNDAI was founded by the late Ju-yung Chung in 1947 with 6 sons. After his death the Hyundai was divided into different “Groups”.

1.) HYUNDAI KIA AUTOMOTIVE GROUP (President & CEO Mong Koo CHUNG) (With Brother Mong Woo Chung as co founder –Committed suicide)


AUTOMOBILE


• Hyundai Motor Company (This is operating globally with Offices in most countries of the world. slogans Drive your way, "Think About It", "Smart Is In")


• Kia Motors (slogan, The Power to Surprise)


AUTO PARTS
• Hyundai Autonet
• Hyundai Enercell
• Hyundai Mobis
• Hyundai Oil Bank
• Hyundai Powertech
• Bontech
• Dymos
• Eco Plastic
• IHL Industry
• Kefico
• Metia Industry
• Hyundai WIA
• Wisco


STEEL
• BNG Steel
• Hyundai Steel
• Hyundai Hysco


RAILROAD AND DEFENSE VEHICLES 
• Hyundai Rotem
• Hyundai WIA


MACHINE TOOLS AND HEAVY INDUSTRIES 
• Hyundai WIA


ADVERTISING AGENCIES 
• Innocean Worldwide


TECHNICAL DEVELOPMENT 
• NGV Corporation


ELECTRICAL HOLDINGS 
• Eco Energy


LOGISTICS 
• GLOVIS


INFORMATION TECHNOLOGY
• Auto Ever
• E-HD.com
• Mozen
• Metia Interactive


BANKING AND FINANCE 
• Hyundai Capital
• Hyundai Card


CONSTRUCTION 
• A-Land
• AMCO Constructions


INSURANCE 
• Hyundai Marine & Fire Insurance (Chairman Moong Yoon CHUNG Brother of Mong Koo)


TRANSPORTATION
• Seoul Metro Line9 (Subway train Line # 9)


SPORTS MARKETING 
• Jeonbuk Hyundai Motors Football Club
• Kia Tigers Baseball Team
• Ulsan Mobis Phoebus (formerly called “Mobis Automons)
• Cheonan Hyundai Capital Skywalkers
• Hyundai Steel Red Angels (Women’s Football Club)

Hyundai Engineering & Construction Group (HYUNDAI E & C GROUP; Formerly part of the Hyundai Group)

• Hyundai Engineering & Construction Co., LTD
• Hyundai Engineering Co. LTD
• Hyundai Equipment & Steel Industries
• Hyundai Design
• Hyundai Farm
• Hyundai CNI
• Hyundai Hillstate
• Hyundai Education

• Hyundai Engineering & Construction Co., LTD (HDEC or Hyundai E & C) (President & CEO Joong Kyum KIM)

• Hyundai E&C U.S.A.
• Hyundai E&C U.K.
• Hyundai E&C Japan
• Hyundai E&C Hong Kong
• Hyundai E& C Singapore
• Hyundai E&C Vietnam
• Hyundai E&C Indonesia
• Hyundai E&C Libya
• Hyundai E&C Iran
• Hyundai E&C Kuwait
• Hyundai E&C Saudi Arabia
• Hyundai E&C Qatar
• Hyundai E&C UAE
• Hyundai E&C India

• Hyundai Engineering Co. LTD, ( HEC or Hyundai Engineering) [President & CEO Dong Wook KIM]


Hyundai Engineering Co., Ltd. Subsidiaries:

• TIES Technology Integration Engineering Services International - Kuwait
• LHT International Engineering Joint Stock Company, Vietnam
• Hyundai Saudi Arabia Co., Ltd
• PT. Hyundai Engineering Indonesia
• Salam Engineering – UAE
• HCL Trinidad & Tobago
• PETRO VIETNAM Investment Consultancy & Engineering Joint Stock Company (PVE) Vietnam
• Hyundai Engineering (Thailand) Co., Ltd
• Hyundai Engineering & Construction C&I Co., Ltd
• Hyundai Engineering India Pvt. Ltd
• Hanra Wind Power Co., Ltd
• Hyundai City Development Co., Ltd

Hyundai Engineering Co. Ltd. Overseas branch offices:

1. Hyundai Engineering Co., Ltd. UAE
2. Hyundai Engineering Co., Ltd. Algeria
3. Hyundai Engineering Co., Ltd. Equatorial Guinea
4. Hyundai Engineering Co., Ltd. India
5. Hyundai Engineering Co., Ltd. Indonesia
6. Hyundai Engineering Co., Ltd. Kazakhstan
7. Hyundai Engineering Co., Ltd. Kuwait
8. Hyundai Engineering Co., Ltd. Sri Lank
9. Hyundai Engineering Co., Ltd. Malaysia
10. Hyundai Engineering Co., Ltd. Philippines
11. Hyundai Engineering Co., Ltd. Thailand
12. Hyundai Engineering Co., Ltd. Turkmenistan
13. Hyundai Engineering Co., Ltd. Tunisia
14. Hyundai Engineering Co., Ltd. Uzbekistan

2.) Hyundai Department Store Group (President & CEO Mong Kun CHUNG)
• Hyundai Department Stores
• Hyundai F&G Holdings
• Hyundai Food Systems
• Hyundai Guhami
• Hyundai Nanumi
• Hyundai Exchange Holdings
• Hyundai Ethics
• Hyundai C&N Holdings
• Hyundai Home Shopping
• Hyundai H&S Holdings
• Hyundai Business Holdings
• Hyundai Dream Tour


3.) Hyundai Group (President & CEO Jeong eun HYUN wife of the late Mong Hun CHUNG) Hyundai Group CEO Mong Hun Chung had committed suicide last August 4, 2003 so his successor is his wife Jeong eun Hyun who is now the President and CEO of Hyundai Group)
• Hyundai Asan
• Hyundai Securities
• Hyundai Elevator
• Hyundai U & I
• Hyundai Research Institute
• Hyundai Investment Network
• Hyundai Corporation
• Hyundai Logiem (Logistics)
• Hyundai Merchant Marine


4). Hyundai Heavy Industries Group (President & CEO Mong Joon CHUNG)
• Hyundai Heavy Industries |[Ulsan Hyundai Mipo Dockyard Sports Team]
• Hyundai Samho Heavy Industries | [Ulsan Hyundai FC]
• Hyundai Corporation
• Hyundai Venture Investment
• Hyundai Futures
• Hyundai Finance


Other Hyundai companies (e.g. Hynix) were separated from the Hyundai Group (under its new management) because of the economic downturns. Previously Hynix which is the world's second-largest memory chipmaker was part of the Hyundai Group in 2002 but sold to HYDIS (TFT LCD Business unit) and it happened again when Hyundai Group mismanaged the Hyundai Engineering & Construction during the economic downturn since they were not able to pay their indebtedness in the Government banks of Korea, so the Government banks took over the HYUNDAI Engineering & Construction Group; the biggest construction company in Korea which was under the umbrella of HYUNDAI GROUP and recently acquired back by the Hyundai Motors Group.


For more Hyundai Conglomerate Group Links, may Check http://www.hikot.com/ where you could find Photos and groups of Hyundai

Hyundai Sponsors 15 days Cultural event for the Public in Seoul

Hyundai Engineering & Constructions profit is soaring in this 3rd quarter of 2010. With performance went up in this 3rd quarter as the sales and operating profit, tentatively tallied on October 22, 2010 rose to 2.2741 trillion won and 176.1 billion won respectively, remaining on an uptrend in the second half of this year. Notably, 3rd-quarter operating profit was significantly up by 40.4 percent compared with the year-earlier quarter, which clearly indicates how well the company manages risks amid global financial crisis.

New orders in the 3rd quarter also increased to 5.4945 trillion won, and total new orders for this year reached 16.1888 trillion own so far. The figure was a 33 % increase from the same period a year earlier and passed the last year’s orders of 15.6996 trillion own. The company expects that given projects currently under construction, they can achieve their outlook for orders for the entire year of more than 20 trillion won.

Stronger sales were thanks mainly to the profit-oriented strategies the company has implemented since CEO Kim Joong-kyum took office to win contracts and make inroads into new markets. Hyundai Engineering & Construction could enjoy a five-year order backlog of about 55.7625 trillion won, expecting its performance to remain stable, the company’s official said.

“In celebration for this hi performance quarter, Our company will sponsor an event of “2010 cultural playground” in (Han River park) Hangang Park TTukseom area for 15 days from October 2 insider said. The event, organized by the Seoul Foundation Arts and Culture as part of Hi Seoul Festival, featured “funny urban maze”- themed playgrounds which have been developed in several contests. Charming decorations and funny games of the event booth satisfied curiosity of visitors, and play programs were provided free of charge during weekends, attracting many people. What is notable this year is that part of profits from the play programs was donated to the foundation.

“Building a booth in the open area is of great significance, given that the outdoor booth could increase the access of participants to the event this year,” an official said. “We could successfully complete the event, helped by ardent support from Seoul citizens.”

Hyundai Engineering's Smart management bears fruit in 3rd quarter for Billion Dollars

Hyundai Engineering & Construction’s performance went up in this 3rd quarter as the sales and operating profit, tentatively tallied on October 22, 2010 rose to 2.2741 trillion won and 176.1 billion won respectively, remaining on an uptrend in the second half of this year. Notably, 3rd-quarter operating profit was significantly up by 40.4 percent compared with the year-earlier quarter, which clearly indicates how well the company manages risks amid global financial crisis.

New orders in the 3rd quarter also increased to 5.4945 trillion won, and total new orders for this year reached 16.1888 trillion own so far. The figure was a 33 % increase from the same period a year earlier and passed the last year’s orders of 15.6996 trillion own. The company expects that given projects currently under construction, they can achieve their outlook for orders for the entire year of more than 20 trillion won.

Stronger sales were thanks mainly to the profit-oriented strategies the company has implemented since CEO Kim Joong-kyum took office to win contracts and make inroads into new markets. Hyundai Engineering & Construction could enjoy a five-year order backlog of about 55.7625 trillion won, expecting its performance to remain stable, the company’s official said.

Hyundai Motor to hike Hyundai Engineering & Construction sales 6 fold

Chairman Moong Koo CHUNG

Should Hyundai-Kia Automotive Group successfully take over Hyundai Engineering & Construction (HE&C), the former vows to jack up the latter’s annual sales almost six fold during the second decade of the new millennium.

Hyundai Automotive Group issued a press release Tuesday, saying that the Seoul-based outfit will crank up HE&C’s yearly sales to 55 trillion won by 2020 from 9.3 trillion won in 2009.

In addition, the country’s largest carmaker said that it would inject fresh investments amounting to 10 trillion won over the next decade into HE&C, the country’s foremost builder, to create more than 300,000 jobs.

``We are jockeying to boost Hyundai Engineering & Construction to become an internationally high value-added, comprehensive constructor that will chalk up 55 trillion won in sales and garner 120 trillion won in orders per annum by 2020,’’ the group said.

``Together with the automobile and steel businesses, construction will be one of the three major pillars to underpin the group’s growth in the future if we acquire the company.’’

Thus far, two candidates have thrown their hats into the ring for the builder ― Hyundai Group and Hyundai-Kia Automotive Group. A 34.88 percent stake in the top constructor is up for sale by creditors.

The creditors, including the Korea Exchange Bank and Korea Finance Corp., plan to pick a preferred bidder by the end of the year in a deal that is estimated to be worth around 4 trillion won.

At first glance, the ambitious scheme sounds overly optimistic because it is typically very difficult to increase the turnover of a company the size of HE&C by six fold in 10 years. Hyundai Automotive, however, says that it can be done by massive investment and better prospects of gaining big deals.

Under the stewardship of CEO Joong Kyum Kim Hyundai Engineering & Construction came up with its own five-year goal of increasing its annual sales to 23 trillion won by 2015. But Hyundai Motor’s guidance is more encompassing and ambitious.

``We have management knowhow and global competitiveness on top of experience in advancing into world markets. With our help, HE&C will expand its presence across the world,’’ a Hyundai Automotive representative said.

``In addition to the Middle East and Southeast Asian countries where HE&C has a strong footing, we will assist the firm to expand in South American and African countries. Out network in 150-plus countries will be of great help.’’

HE&C was founded in the 1940s by the late Hyundai founder Chung Ju-yung and became the core asset of the Hyundai business empire.

However, the company saw its fortunes decline in the aftermath of the Asian currency crisis in the late 1990s and was eventually handed over to creditors in 2001 through a debt-to-equity swap.

Hyundai Automotive Chairman Chung Mong-koo is the second son of the founder while Hyundai Group is currently operated by Hyun Jung-eun, the widow of Mong-koo’s younger brother Mong-hun.

Hyundai Motor and Kia Motors are the flagship subsidiaries of the group. It also has Hyundai Steel under its wing, which has established a blast furnace to create high-quality steel.

By Kim Tae-gyu
http://www.koreatimes.co.kr/www/news/biz/2010/10/123_74822.html

Hyundai Motor to invest 10 trillion Korean Won in Hyundai Engineering

Hyundai Motor Group has raised the stakes in its competition with Hyundai Group to acquire Korea’s top construction company.
Hyundai Motor said on Tuesday it will invest 10 trillion won ($8.9 billion US Dollar) in Hyundai Engineering & Construction by 2020 if it succeeds in taking a controlling stake in the company.

Under a blueprint to grow Hyundai Engineering & Construction into a leading global integrated engineering corporation, the investment will be directed to boosting its capacity for infrastructure development, plant construction, renewable energy and R&D, the world’s fifth-largest carmaker said.

It set a goal for Hyundai Engineering & Construction to achieve 120 trillion won in orders and 55 trillion won in sales for 2020.
The plan also envisions that the builder will diversify its business portfolio through stepping up its presence in fields such as harbor works, chemical engineering, water plant, road construction, residential buildings and real estate, Hyundai Motor said.

Shifting its business focus to higher value-added projects from heavily construction-centered operations, the company expects to expand its 90,000 labor force to around 410,000 by 2020.

“Hyundai Engineering & Construction will be our new growth engine to become a global general engineering company,” a Hyundai Motor official said. “We’ll gather our energies to strengthen the country’s capacity in high value-added construction.”

Hyundai Motor Group, parent of the country’s two largest auto companies, submitted last month its bid for a $2.5 billion stake in Hyundai Engineering & Construction. Hyundai Group is the other competitor.
The auto giant is run by Chung Mong-koo, the son of Hyundai Group founder Chung Ju-young. His elder brother’s widow, Hyun Jeong-eun, runs the current Hyundai Group.

In April, Hyundai Motor Group’s assets were valued at about 100.7 trillion won by the Fair Trade Commission, marking the country’s second largest conglomerate. The assets of Hyun’s Hyundai Group stood at about 12.4 trillion won.

Hyundai Engineering & Construction recorded revenues of nearly 9.3 trillion won and operating profits of 418.9 billion won last year.
The builder is considered to be the foundation of Chung Ju-young’s Hyundai Group, from which the current Hyundai Group and the carmaker were spun off.

The successful bidder will acquire 34.88 percent, or a little less than 39 million shares, with the price expected to settle at between 3.5 trillion won to 4 trillion won.

Korea Finance Corporation is currently the builder’s largest shareholder with 11.12 percent of shares.

By Shin Hyon-hee (heeshin@heraldm.com)
http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101019000718

Hyundai Engineering's President & CEO's Dong Wook Kim Autumn Speech of Morning Assembly (October)

Now autumn is already in the air. Sending a capricious season, it seems there will be more good things to happen this fall. We’ve just had the awards ceremony for contributors of contracts and excellent sites.

I express my gratitude;  From Honam Petrochemical P2 Project, and HCP Project obtained from the narrow domestic market, to Revamping Plant in Malaysia, Phosphatic Plant in Tunisia, and Gautami Power Plant in India, and to site manager and employees who have successfully completed overseas EPC projects.

I truly congratulate you and appreciated it.

It is needless to say, but it reminds me of saying, “Talented people are assets” especially in engineering field. The invaluable outcome has resulted from not only the directly related staff and employees, but the entire staff and employees who passionately worked together night and day to attain our goal.

I’d like to state the estimated business results for the 3rd quarter of 2010.

The sum of obtained orders is $ 1,990,000,000 (Billon) US Dollar which is 92% achievement compared to the plan, and the sales is $760 million US Dollar which is 88%, and therefore order reception and sales is somewhat behind the plan. Still, the operating profit is $110 million US Dollar, which is 105% achievement of the plan.

Our beloved employees, now it’s the 4th quarter of 2010. What is your resolution? We have to put effort on business goal achievement for this year, as well as prepare ourselves for the oncoming 2011.

Once the Korean Won keeps rising while we are aggressively competing in Middle East with European corporations such as those of Italy and Spain, the probability of order taking will get lower. Hyundai Engineering is confident globally because it is in its instinct of being technology advance, and global competitive but we anticipate the stiff competition in the Design, Engineering and Construction industry.

The intense competition is expected, since the narrower domestic market leads a number of Korean companies to enter the overseas market more rapidly.

Even the profitability doesn’t seem to get better next year. Still, the risks in market always exist, and we have been developed while seeking chances and challenging ourselves within risks. By enhancing competitiveness to overcome the challenge before blaming the adverse economic situation, there’s nothing we have to be afraid of.

There are distinctive characters among the Top ranked global corporations in ENR survey; pursuing EP&CM and high overseas sales proportion. In order to compete with them in the same market and take the dominant position, it is necessary to build a firm foundation as a global level.  In the following order, there will be a presentation regarding Indian state and culture by Mr. Ramesh from Process Plant division.

The homeland introduction of a foreign employee working for Hyundai Engineering (HEC) would be effective with its practical information and as a method of communication.  Employees shall globalize their business process and attitudes and upgrade mind in order to make a competitive organization with global competency.

Our beloved employees, now we should progress toward the vision we’ve built and challenge ourselves with constant passion.  The business goal for 2011 is to advance the Vision 2015 by 1 year, building aggressive goals. Achieving not only quantitative but qualitative goals, our company monitors the vision practice state by each department/team every six month, and gives feedback for practicing willpower.

Let’s attain the Vision 2015 in advance by steady and consistent practice.

Our beloved employees, our Company, The Hyundai Engineering has signed up for the UN Global Compact, an international agreement for the first time as a domestic engineering company, and expects to publish Sustainability Management Report soon. Through stabilizing the transparency and ethical foundation in general, and through win-win management with subcontractors and sharing management, we shall grow as a beloved and respected corporation.

I suggest to all the employees to adapt  the new international paradigm. Now it’s time to wrap up the last 3 months and plan for the next year. Next year will be busy, with the order backlog for 3 years, worth of $4,220 million.

The manpower shortage is forecasted to deepen.

To resolve the shortage problem, we should outsource the low value-added sector and improve the inefficient sector into productivity-oriented process through change and innovation.

I appreciate all the employees working overtime and during weekends to take all the job responsibilities, and I’d like to stress that we should make an enjoyable working atmosphere as much again.

Under the cold weather and busy works, please put your health care above all.

May happiness fill you and your family every day.

Thank you.

 

Hyundai Engineering Reach-out to Equatorial Guinea

The sharing management of Hyundai Engineering is spreading far to Equatorial Guinea, Africa, adding warmth.

10 employees from the integrated office including Senior Vice President Choi, Sung-pil, visited an elementary school in Bata, on September 20th 2010 for the Hyundai Engineering International reach out program. They handed over necessary school supplies such as 320 sets of desks & chairs, 320 art supplies, notebooks, and whiteboards.

The children were excited in that they can learn from better atmosphere with new desks and whiteboards. In addition, the site manager Kwon, Joong-kee and employees from Hyundai Engineering Project in “Mongomo Sewage Treatment Facility” Construction site visited an elementary school in Mongomo and offered art supplies, soccer balls, food, etc.

The residents who have attended the delivery ceremony was so impressed and so happy for the high quality supplies as said, “High quality and new designed stationeries.” And added, “Thanks to the Hyundai Engineering’s gifts, the whole town is delightful.”

Following last year, this is the second time to present school facilities and stationeries.

Hyundai Engineering in Equatorial Guinea is not only performing sincere projects but enhancing its evaluation as a sharing company.

Hyundai Engineering upgraded IT infrastructure security system

Hyundai Engineering IT security improvements have its dry run since October 14 2010 for their final implementation scheduled November 1 2010. Account management system is based on Microsoft AD (Active Directory) Infrastructure that will tighten the data security of the company.

This is a much secured system that won’t allow anybody to use flash drive or any portable drive when saving files and data sharing also is blocked to avoid sending or exporting data to any means which is not monitored by the company.  The only means to transmit file is the Email system which also features the high control from the IT department. “We expect that the efficiency and security of data management will be increased by establishing the system, which integrates server accounts which were operated separately or shared into one directory, creating unified certification system for each user”, insider said.. 

And, we can prevent breach of security including leaking of information through integrating and centralizing ID data and management system that will remove dormant account, shared account, and creating unnecessary access account fundamentally. External files from portable drives could be read and could be stored to the computer system but changes from those files could not be save anymore in the portable drives as it has a 1 way access (IN no OUT system)

Active Directory: An inclusive solution of account integration and access management, required for identifying user and administrating the access of system resource by assigned level of authority. Though there are few disadvantages for this system, the company may prefer to have it this way than to allow leaked of data from different sources.

An external IT analyst found out a security weakness of this system as South Korea is very dependent on the sole An Lab security system which is not so effective in blocking harmful viruses which are agent of phishing, spying and etc. According to the external IT analyst who is so familiar with the system; He tried using the An Lab antivirus and An lab internet security but it could not detect and could not remove dangerous Trojan virus, spyware, malwares, and worms that slowly attacking all internet users in South Korea.  A certain phishing worms and virus been detected by other antivirus which become dormant to the online programs of the KB or Kookmin Bank which also possible to the other banks but no action or feedback from the bank so far.

Hyundai Motor looks to construction for growth (Hyundai Engineering)

Hyundai Motor Group, the parent of the country’s two largest carmakers, is turning its eyes outside the boundaries of the automotive business to maintain the growth momentum.

Since breaking away from Hyundai Group founded by Chung Ju-young, Hyundai Motor Group has rapidly expanded its operations to become the world’s fifth-largest automotive group in the world.

Aided by its growing presence in the market and improving quality of their vehicles, the group’s two carmakers Hyundai Motor Co. and Kia Motors Corp. recorded record earnings during the first half of the year, and the companies are also expected to have performed well during the third quarter of the year.

For the first half of the year, Hyundai Motor posted revenues of nearly 18 trillion won ($16 billion), while the operating and net profits came in respectively at 1.56 trillion won and 2.52 trillion won.

Although the carmaker raked in record profits, the company attributes much of the improvements seen this year to passive factors such as the economic recovery, and difficulties experienced by its larger competitors such as GM and Toyota Motor Corp.

In addition, the local currency’s continuing weakness is also thought to have aided overseas sales, figures for which have seen much more significant improvements this year. During the first nine months of the year, Hyundai Motor’s overseas sales increased by 27.4 percent compared to the same period last year, while domestic sales shrank by 3 percent.
Over the same period, Kia Motors’ overseas and domestic sales increased by 51.5 percent and 20.8 percent, respectively.

However, despite increasing sales, Hyundai Motor Group says that the growth rate of its automotive business is slowing.
The profit margins of carmakers have shrunk in response to intensifying competition in the global market, and as the industry is sensitive to changes in exchange rates and raw materials costs and other external factors, carmakers are vulnerable to sudden changes.

In 2005 and 2006, when the won was at its strongest against the dollar in the past decade, Hyundai Motor’s operating profits fell to the lowest levels seen during the period, despite having maintained revenues at similar levels to 2004.

According to the company, the group’s decision to enter the biddings for Hyundai Engineering and Construction is part of its strategy to seek out new revenue sources and to maintain its growth momentum.
“Our automotive business in the global market is stable, but the group needs businesses that can compensate for uncertainties of the industry,” a Hyundai Motor Group official said.
“And now is the right time, when the group is financially stable.”

According to Hyundai Motor Group, the company views the construction sector as an essential part of its future growth.
“The construction business has a higher growth rate than other businesses the group is operating in. In particular, the demand for eco-friendly overseas projects is rising,” a Hyundai Motor Group official said.
“In addition, construction business can compliment the automotive industry’s business cycle and reduce the impact of negative developments.”
With the auto giant apparently having been interested in the construction sector for some time, Hyundai Engineering & Construction appears to be an opportunity the conglomerate can’t afford to miss.

Hyundai Engineering & Construction is the country’s largest construction company, and has been growing at an annual average of 15 percent since the workout process began.

In addition, the company’s 2009 revenues of nearly 9.3 trillion won is equivalent to almost 10 percent of the figure for the entire Hyundai Motor Group recorded in that year, which came in at 94.65 trillion won.
Hyundai Engineering & Construction’s portfolio structure is another factor that has made Hyundai Motor Group show interest in the company.

According to the group, residential properties that are vulnerable to changes in the economy make up relatively small proportion of the builder’s portfolio compared to the competition. In addition, Hyundai E&C’s overseas presence has been expanding with the value of overseas contracts awarded to the company during the first half of the year rising by more than 70 percent from the same period last year.

“The company’s brand value is also receiving increasing recognition, and the proportion of its sales accounted for by overseas projects is expected to increase,” Hyundai Motor Group official said.
“In this, there will be synergy effect with Hyundai Motor Group’s global network. For the group, Hyundai E&C is attractive in terms of both the synergy effect it will create within the group and our future growth strategy.”

By Choi He-suk (cheesuk@heraldm.com)
http://www.koreaherald.com/business/Detail.jsp?newsMLId=20101014000713