[Asia Economy Reporter Yoo Hyun-seok] Hyundai Motor Group is establishing a corporation in the United States to discover and invest in future growth businesses. This is a follow-up measure to the $10.5 billion investment plan in the U.S. announced during President Biden's visit to Korea last May.
According to a disclosure on the 30th, three major affiliates?Hyundai Motor, Kia, and Hyundai Mobis?will jointly participate in establishing the corporation. The corporation will be set up in Delaware, USA, under the tentative name 'HMG Global.' The official name and CEO will be decided at the time of establishment.
Hyundai Motor and Kia will newly invest a total of 747.6 billion KRW (Hyundai Motor 291.2 billion KRW, Kia 456.4 billion KRW) in cash into the new corporation. This cash investment will serve as the capital for the corporation's investments. Converted to dollars, this amounts to $578 million.
Additionally, Hyundai Motor and Hyundai Mobis will contribute their respective shares of the robotics company 'Boston Dynamics' as non-cash contributions. The value of these contributions is 746.7 billion KRW (Hyundai Motor 448 billion KRW, Mobis 298.7 billion KRW). Through this, the two companies will fully transfer their holdings in Boston Dynamics. This corresponds to 50% of Boston Dynamics' total shares, effectively placing Boston Dynamics under the management of the new corporation.
The establishment of the corporation is expected in August, after consultations and approvals from relevant U.S. authorities required for corporate mergers are completed. The shareholding structure of the new corporation will be Hyundai Motor 49.5%, Kia 30.5%, and Hyundai Mobis 20.5%.
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