Hyundai Automotive Groups Continues to Grow
The Hyundai Automotive Group under Chairman Chung Mong Koo has steadily integrated its operations. Now, it is also expanding to diverse areas.
In addition to buying auto parts maker Korea Automotive Systems Co. (see yesterday's blog), Hyundai, which holds the nation's two largest automakers Hyundai Motor Co. and Kia Motors Corp., also owns Haevich Leisure Co.
Hyundai said the new company's role is to provide leisure services for the automaker's VIPs or to hold golf tournaments in its existing resort on Jeju Island, south of the peninsula, called Haevich Resort, which is owned by Chairman Chung Mong-koo's wife, with Kia Motors and Hyundai Motor also as major shareholders.
Hyundai is not alone in resort ownership in fact as a Hyundai official noted in the Korea Herald "Most big conglomerates such as Samsung own resorts and leisure businesses. There is no reason why we shouldn't. As we move our focus to larger luxury sedans, we needed to intensify sports marketing for higher-end customers."
Haevich Leisure is just one of the latest moves for the automaker's expansion.
In addition ,the Hyundai Automotive Group recently announced its plan to grow its subsidiaries INI Steel Co. and construction company Amco Corp.
The plan is to make INI Steel the 15th largest global steelmaker by 2007. A new high-tech mill, capable of producing 7 million tons of steel per year, is scheduled to break ground in 2007 and to be completed by 2010.
Hyundai also issued new shares of Amco Corp. last month, increasing its capital by more than 10-fold to $50 million.
Chairman Chung and his son Eui-sun, who is President of Kia Motors Corp. hold a tenth and a quarter each of Amco. Hyundai's logistics firm called Glovis Co. owns another quarter, and Kia and Hyundai Mobis control about 20 percent each.
Amco, which used to build auto plants and research centers, recently sold "Amco Town" apartments it set up in the western port city of Incheon. This appears to be as wise move since Incheon has its sights on being the gateway to East Asia.
In addition to buying auto parts maker Korea Automotive Systems Co. (see yesterday's blog), Hyundai, which holds the nation's two largest automakers Hyundai Motor Co. and Kia Motors Corp., also owns Haevich Leisure Co.
Hyundai said the new company's role is to provide leisure services for the automaker's VIPs or to hold golf tournaments in its existing resort on Jeju Island, south of the peninsula, called Haevich Resort, which is owned by Chairman Chung Mong-koo's wife, with Kia Motors and Hyundai Motor also as major shareholders.
Hyundai is not alone in resort ownership in fact as a Hyundai official noted in the Korea Herald "Most big conglomerates such as Samsung own resorts and leisure businesses. There is no reason why we shouldn't. As we move our focus to larger luxury sedans, we needed to intensify sports marketing for higher-end customers."
Haevich Leisure is just one of the latest moves for the automaker's expansion.
In addition ,the Hyundai Automotive Group recently announced its plan to grow its subsidiaries INI Steel Co. and construction company Amco Corp.
The plan is to make INI Steel the 15th largest global steelmaker by 2007. A new high-tech mill, capable of producing 7 million tons of steel per year, is scheduled to break ground in 2007 and to be completed by 2010.
Hyundai also issued new shares of Amco Corp. last month, increasing its capital by more than 10-fold to $50 million.
Chairman Chung and his son Eui-sun, who is President of Kia Motors Corp. hold a tenth and a quarter each of Amco. Hyundai's logistics firm called Glovis Co. owns another quarter, and Kia and Hyundai Mobis control about 20 percent each.
Amco, which used to build auto plants and research centers, recently sold "Amco Town" apartments it set up in the western port city of Incheon. This appears to be as wise move since Incheon has its sights on being the gateway to East Asia.
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