Hyundai Steel Sells Beijing and Chongqing Subsidiaries in China... Due to Hyundai Motor's Poor Performance

Revealed as Assets Scheduled for Sale in the Semiannual Report

As Hyundai Motor and Kia's poor performance in China continues, Hyundai Steel has begun the process of selling its Beijing and Chongqing subsidiaries.

According to the recent semi-annual report released by Hyundai Steel, the company disclosed its Chinese subsidiaries, 'Hyundai Steel Beijing Process' and 'Hyundai Steel Chongqing,' as assets planned for sale.

The total asset size of the two Chinese subsidiaries, according to their business reports, amounts to 82.483 billion KRW.

Hyundai Steel has signed memorandums of understanding (MOUs) with potential buyers and started due diligence for the sale of these subsidiaries. Specific prices related to the real estate and shares of the two subsidiaries have not been disclosed.

Hyundai Steel's Beijing and Chongqing subsidiaries were established in 2002 and 2015, respectively, to reprocess automotive steel sheets imported from Korea and supply them to Hyundai Motor and Kia's factories in Beijing and Chongqing.

However, following the deployment of THAAD, retaliatory measures by the Chinese government against Korean companies, such as the ban on Korean entertainment (Hallyu ban), intensified, along with supply chain crises caused by the US-China trade conflict and ongoing crises like the Russia-Ukraine war.

As a result, Hyundai Motor and Kia's sales performance in China has been poor, making it inevitable for Hyundai Steel to restructure its Chinese subsidiaries.

According to CEO Score, a corporate data research institute, Hyundai Motor's Chinese subsidiary, 'Beijing Hyundai Motor,' saw its sales plummet by 75.7% last year compared to 2016. During the same period, Kia's Chinese subsidiary, 'Jiangsu Yueda Kia Motors,' also experienced an 80.8% drop in sales.

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