Hyundai Motor "Not Currently Pursuing Sale of Hyundai Rotem Shares, etc." (Update)

Hyundai Rotem Union Also Says "Absolutely No Sale"

KTX-Eum manufactured by Hyundai Rotem
[Photo by Hyundai Rotem]

[Asia Economy Reporter Kim Heung-soon] Hyundai Motor Company denied rumors about the sale of certain business divisions of its affiliate Hyundai Rotem, which is responsible for defense, plant, and railway businesses, stating that it is "not pursuing any share sales."

On the 21st, Hyundai Motor made this clarification through a disclosure addressing some media reports about the "sale of Hyundai Rotem shares to Germany's Siemens." On the same day, Hyundai Rotem also announced, "After confirming with the largest shareholder Hyundai Motor, we are not pursuing any share sales."

Previously, within the financial investment industry, there were talks that Hyundai Motor was considering the separate sale of Hyundai Rotem's railway division, which had recently shown poor performance. It was reported that they were discussing the price and method while reviewing the sale of shares to the German manufacturer Siemens.

Both Hyundai Motor and Hyundai Rotem officially stated that these reports and rumors are not true. Meanwhile, the Hyundai Rotem branch of the Korean Metal Workers' Union also released a statement on the same day, saying, "After confirming the sale rumors with the president and management, they vehemently denied them," and urged, "The group should put an end to such reports from appearing."

The Hyundai Rotem branch added, "The sale of a company should involve the consent of all employees," emphasizing, "Hyundai Rotem, the only domestic company producing both railway vehicles and defense industry products, which are national key industries, can never be sold."

Meanwhile, as of the end of last year, Hyundai Motor holds a 33.77% stake in Hyundai Rotem, making it the largest shareholder. Among Hyundai Rotem's business sectors, the railway division accounts for more than half of its sales but has recorded operating losses for three consecutive years: 41.7 billion KRW in 2018, 259.5 billion KRW in 2019, and 11.6 billion KRW last year.

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