[Special Stock] KoreaFT, Hyundai-GM 'Alliance' Biggest Beneficiary... World's First Technology 'Value' Up

Korea FT is showing strong performance. The news that global automakers Hyundai Motor and American General Motors (GM) have agreed to jointly develop and produce not only passenger cars but also commercial vehicles seems to be influencing the stock price.

As of 9:13 AM on the 13th, Korea FT is trading at 6,720 KRW, up 10.34% from the previous day.

Yoon Hyuk-jin, a researcher at SK Securities, explained, "Hyundai Motor's weakness in the North American market is the absence of pickup trucks, while GM lacks hybrid technology," adding, "It is also possible for Hyundai to launch pickup trucks and GM to release hybrid vehicles."

He continued, "Through rebadging?launching one vehicle model under multiple brands?significant cost savings can be achieved in new car development and sales networks."

He emphasized, "If GM enters the European market through Hyundai's rebadging or launches hybrid vehicles, Hyundai can drastically reduce the cost of the respective vehicle model due to economies of scale from mass production."

Researcher Yoon analyzed, "Among the domestic value chain, hybrid parts will have the most impact," noting, "Hybrid sales are rapidly increasing as the electric vehicle market crosses the chasm." He added, "The beneficiaries are limited to Japanese companies like Toyota, Hyundai/Kia, and Ford," and "GM, unlike Ford, does not have a hybrid lineup, so it has not benefited."

He predicted, "Korea FT and Sebang Industry, which are part of Hyundai Motor's hybrid value chain, have opened up the possibility of increased sales by supplying GM's hybrid vehicles," adding, "Since it takes several years from development to launch in the automotive industry, this cooperation is expected to have a positive effect on the long-term competitiveness of both companies rather than short-term effects."

Korea FT achieved its highest-ever quarterly operating profit. Korea FT, the only company in Korea to develop carbon canisters and supply them to five domestic automakers, has developed the world's first canister for hybrid (HEV) vehicles, leading to an increase in supply volume.