Hyundai Glovis, Surges 60% in 3 Months Highlighting 'Group Core' Status

[Asia Economy Reporter Koh Hyung-kwang] Hyundai Glovis is rapidly emerging as a key affiliate in the 'Jung Eui-sun Hyundai Motor era,' showing a steep rise in its stock price.

According to the Korea Exchange on the 21st, Hyundai Glovis closed at 199,500 KRW on the KOSPI market the previous day, up 14.3% from the previous trading day. It also rose to an intraday 222,000 KRW, a 52-week high. Compared to the stock price three months ago on July 21 (122,000 KRW), it surged 63.5%.

The rise in Hyundai Glovis was driven by foreign investors. Over the past three months, foreigners purchased 86.6 billion KRW worth of Hyundai Glovis shares, leading the stock price increase. During the same period, individual investors also net bought 43 billion KRW.

It is analyzed that the driving force behind foreign buying was the attention Hyundai Glovis received as the core affiliate expected to benefit the most from the group’s governance and business restructuring centered on Jung Eui-sun, the new chairman of Hyundai Motor Group. Chairman Jung holds a 23.2% stake in Hyundai Glovis. It is considered one of the affiliates with a high shareholding ratio by Chairman Jung within the group, which fuels strong expectations for governance restructuring centered on Hyundai Glovis.

Yang Ji-hwan, a researcher at Daishin Securities, said, "Regardless of how Hyundai Motor Group proceeds with governance restructuring, it is clear that Glovis and Hyundai Mobis will be utilized," adding, "It is important that the value of the shares held by Chairman Jung Eui-sun increases, which is why Glovis is gaining prominence."

The securities industry also expects that if Hyundai Motor Group’s governance restructuring proceeds in a market- and shareholder-friendly manner, the value of the group’s stocks could rise together. Kang Sung-jin, a researcher at KB Securities, said, "The reason Hyundai Motor Group stopped attempting governance changes in 2018 was because it was difficult to persuade shareholders of key companies such as Hyundai Motor and Kia Motors," and predicted, "To avoid repeating trial and error, the group is expected to pursue advanced governance changes, and if the group shifts to shareholder-friendly governance, a simultaneous rise in group stock prices can be expected."

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