Hyundai Motor Group Provides 55.7 Billion KRW Operating Funds to 1,800 Dealerships

400 Billion KRW Win-Win Fund for Dealership Operating Capital and 12.1 Billion KRW Rental Support Fund, etc.

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Group announced on the 8th that it will provide a total of 55.7 billion KRW in operating funds this year to sales dealerships of Hyundai Motor and Kia Motors, as well as parts sales dealerships of Hyundai Mobis. This amount represents a 70% increase compared to last year (32.7 billion KRW) through the creation of a win-win fund and rent support.

Hyundai Motor Group is already providing approximately 70 billion KRW in sales support funds. The newly allocated 55.7 billion KRW is intended to support the stable operation of sales dealerships amid increased uncertainty caused by the COVID-19 pandemic. The support targets a total of about 1,860 dealerships nationwide, including approximately 760 Hyundai and Kia sales dealerships and about 1,100 Hyundai Mobis parts sales dealerships.

First, Hyundai Motor Group will establish a 40 billion KRW dealership operating fund win-win fund to support interest payments when dealerships take out loans from financial institutions for operating or facility investment purposes. The goal is to reduce financial burdens so that dealerships can maintain financial soundness and focus on operations.

Hyundai Mobis has been operating a 20 billion KRW win-win fund since 2016, and Hyundai Motor and Kia Motors will each newly contribute 10 billion KRW to the fund. Hyundai Motor Group plans to consider additional fund creation if necessary, depending on the usage trends of the dealerships’ win-win fund.

Additionally, Hyundai and Kia Motors plan to alleviate the burden of fixed monthly rent expenses for dealerships. The rent support fund for finished vehicle sales dealerships this year is 12.1 billion KRW. The rent support amount is determined comprehensively based on the status of each dealership and will be provided to all Hyundai and Kia dealerships. Furthermore, 3.6 billion KRW will be invested in improving aging dealership facilities.

Moreover, Hyundai Motor Group operates various programs to enable dealerships to conduct education on a wide range of topics such as business, humanities, and new automotive technologies. Active communication is also maintained through the dealership councils (associations) of Hyundai Kia Motors and Hyundai Mobis. Discussions are underway with the associations regarding the introduction of the “Standard Dealership Transaction Agreement for Automobile Sales and Automobile Parts Industries,” which was established to foster fair trade practices with dealerships.

A Hyundai Motor Group official stated, "We focused on practical measures needed by frontline dealerships, which are the first to be affected during economic downturns," and added, "We will prepare together for the post-COVID era, including overcoming the COVID-19 crisis, through win-win cooperation with dealerships."

This content was produced with the assistance of AI translation services.