Hyundai Heavy Group Construction Equipment Holding Company Hyundai Genuine Launched... "Will Rise to Global Top 5"

[Asia Economy Reporter Jeong Hyunjin] Hyundai Genuine, the intermediate holding company of Hyundai Heavy Industries Group's construction equipment division, officially launched on the 27th after acquiring Doosan Infracore. Hyundai Genuine, which has entered the final stage of acquiring Doosan Infracore, announced its goal to rank among the 'Top 5' in the global market by 2025.

On the same day, Hyundai Heavy Industries Group held an extraordinary general meeting and a board meeting, appointing Chairman Kwon Oh-gap of Hyundai Heavy Industries Holdings and President Cho Young-chul of Korea Shipbuilding & Offshore Engineering as co-CEOs. Newly appointed CEO Cho was promoted to president along with Vice President Oh Se-heon, head of compliance management at Korea Shipbuilding & Offshore Engineering.

Hyundai Heavy Industries Group recently completed preparations for acquiring Doosan Infracore by obtaining corporate merger approvals from five countries, including the Korea Fair Trade Commission, Russia, China, Vietnam, and Turkey. The group explained that with the appointment of Hyundai Genuine's CEO and completion of domestic and international merger approvals, it has entered the final stage of acquiring Doosan Infracore.

Hyundai Genuine CEO (Chairman) Kwon Oh-gap (Photo by Hyundai Heavy Industries Holdings)

Hyundai Heavy Industries Group explained that Chairman Kwon taking the role of co-CEO of Hyundai Genuine reflects the group's intention to intensively nurture the construction equipment business as a core business alongside shipbuilding and energy. Born in 1961, CEO Cho Young-chul has served as Hyundai Heavy Industries' head of finance, Hyundai Oilbank's head of management division, and Hyundai Heavy Industries' head of finance division. He currently serves as Hyundai Heavy Industries Group's Chief Financial Officer (CFO) and head of management support at Korea Shipbuilding & Offshore Engineering.

Hyundai Genuine plans to raise additional funds through KDB Investment (KDBI) and acquisition financing to fully pay the acquisition price for Doosan Infracore by next month. Once the deal is finalized, Hyundai Genuine will officially function as an intermediate holding company with Hyundai Construction Equipment and Doosan Infracore as its subsidiaries.

Hyundai Genuine CEO Jo Young-chul (President) (Photo by Hyundai Heavy Industries Holdings)

Newly appointed CEO Cho said, "We will do our best to make the construction equipment division a core business of Hyundai Heavy Industries Group by focusing intensive investment on market-leading technology development," adding, "Through maximizing synergy between Doosan Infracore and Hyundai Construction Equipment, we aim to achieve a global market share of over 5% by 2025 and secure a position among the global 'Top 5'."

Meanwhile, Hyundai Heavy Industries Holdings, the holding company of Hyundai Heavy Industries Group, held a board meeting on the 26th and approved agenda items including the contribution in kind of Hyundai Construction Equipment shares and a paid-in capital increase. Accordingly, Hyundai Heavy Industries Holdings will contribute 33.1% of Hyundai Construction Equipment shares in kind to Hyundai Genuine and receive new shares of Hyundai Genuine. Additionally, Hyundai Genuine will participate in a paid-in capital increase worth 217.9 billion KRW conducted to acquire Doosan Infracore.