Subscribe
E-Paper
 |
| Hyundai Motor Group's headquarters in Seoul. / Courtesy of Hyundai Motor Group |
By Kim Hyun-bin
Hyundai Motor Group established a new investment unit in the U.S. as part of the investment pledge made by Hyundai Motor Group Chairman Chung Euisun during U.S. President Joe Biden's visit to Korea in May.
According to the announcement of the Financial Supervisory Service, Hyundai Motor Group established the affiliate, "HMG Global Limited Liability Company (LLC)," in Delaware, United States, Friday. The three affiliates participating in the investment are Hyundai Motor, Kia, and Hyundai Mobis.
Hyundai Motor will inject 739.2 billion won ($569.4 million), Kia 456.4 billion won and Hyundai Mobis 298.7 billion won. Among them, the total amount of cash investment by the three companies is 747.6 billion won. The remaining 746.7 billion won was made through the stake in Boston Dynamics held by Hyundai Motor and Hyundai Mobis.
Following the stock acquisition, the ownership stake is 49.5 percent for Hyundai Motor, 30.5 percent for Kia and 20 percent for Hyundai Mobis.
This investment corporation will be in charge of investment into and management of future new business areas in the U.S. After consultations and approvals with related agencies, the investment will be carried out in August. The name or representative of the issuing company will be confirmed at the time of the investment.
"The establishment of an investment corporation is part of the U.S. investment plan announced during President Biden's visit to Korea," a Hyundai Motor Group official said.
Chairman Chung met with President Biden, who was visiting Korea on June 22 and promised to make an additional investment of $5 billion.
The plan is to invest $5 billion by 2025 to strengthen cooperation with U.S. companies in various technology fields, including robotics, urban air mobility (UAM), autonomous driving and artificial intelligence (AI).
