|Seen is the plot of land in Samseong-dong, that southern Seoul, a consortium led by Hyundai Motor has purchased from KEPCO for 10.5 trillion won. The carmaker plans to build its new headquarters, a convention center, a hotel and other car-themed facilities on the property. / Yonhap|
By Park Si-soo
A consortium led by Hyundai Motor officially signed a deal to buy 80,000 square meters of land in Samseong-dong, southern Seoul, from the Korea Electric Power Corporation (KEPCO) for 10.5 trillion won ($10 billion).
The company said Friday that the boards of Hyundai Motor and two affiliates ㅡ Kia Motors and Hyundai Mobis ㅡ had approved the purchase.
The announcement came eight days after the consortium, which comprises Hyundai Motor and the two affiliates, was designated the preferred bidder. KEPCO sold the land to pay its snowballing debt.
Hyundai Motor is responsible for paying 55 percent of the price, Kia 20 percent and Mobis the remainder, Hyundai Motor said in a press release.
The consortium made a 10-percent contract deposit ahead of the signing ceremony, which was attended by a handful of working-level officers from both sides. The three companies will make the remaining payments in installments by next September.
"The three members of the consortium had individual board of directors' meetings on Friday. They approved the purchase after verifying that the deal had been made properly," Hyundai said in the release.
Hyundai has yet to reveal details of its plans for the land.
Hyundai Motor Group Chairman Chung Mong-koo simply said he had decided to buy the land after considering "the big picture of the company's growth over the next 100 years."
Hyundai officers said the land might house the firm's new headquarters, a convention center, a five-star hotel and a car-themed entertainment park. Its existing headquarters in Yangjae, Seoul, would become the site of the automaker's main research and development center.
"It's unclear how the land will be used," a Hyundai spokesman said. "A concrete plan will be unveiled in the near future."
Hyundai Motor Group shares closed down 1.32 percent, or 2,500 won, at 187,000. Kia Motors closed down 0.75 percent, or 400 won, at 53,000 won. But Hyundai Mobis closed up 0.59 percent, or 1,500 won, at 255,000.
The KOSPI closed down 0.12 percent, or 2.47 points, at 2,031.64.