Jung Eui-sun Acquires 19 Billion KRW Worth of Hyundai Motor and Mobis Shares "Responsible Management in Emergency Situation" (Comprehensive)

Chung Euisun, Executive Vice Chairman of Hyundai Motor Company. / Photo by Hyunmin Kim kimhyun81@

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[Asia Economy Reporter Kiho Sung] Hyundai Motor Company and Hyundai Mobis announced on the 23rd that Chung Eui-sun, Vice Chairman of Hyundai Motor Group, purchased shares in each company to strengthen responsible management.

According to the Financial Supervisory Service's electronic disclosure system on the same day, Vice Chairman Chung purchased 139,000 shares of Hyundai Motor on the open market. The acquisition price was 68,435 KRW per share, totaling approximately 9.5 billion KRW. As a result, Vice Chairman Chung's stake in Hyundai Motor increased from 1.81% to 1.86%. This is his first purchase of Hyundai Motor shares in 4 years and 4 months since November 2015.

On the same day, Hyundai Mobis also disclosed that Vice Chairman Chung purchased 72,552 common shares on the open market. The acquisition price was 130,789 KRW per share, with a total purchase amount of approximately 9.5 billion KRW. Consequently, Vice Chairman Chung's stake in Hyundai Mobis increased from 0% to 0.08%. This is the first time Vice Chairman Chung has purchased Hyundai Mobis shares.

Hyundai Motor Group explained that this move is part of responsible management amid the significant stock price declines caused by the COVID-19 pandemic.

In fact, the stock prices of Hyundai Motor and Hyundai Mobis have continued to decline due to production disruptions and weakened consumer sentiment caused by COVID-19. Hyundai Motor's stock price, which started the year in the 120,000 KRW range, fell to 68,900 KRW as of the closing price on the 23rd. Hyundai Mobis also saw its stock price drop from 254,500 KRW at the beginning of the year to 121,000 KRW as of the closing price on the 23rd, effectively halving its value.

A Hyundai Motor Group official stated, "This activity reflects our commitment to responsibly lead the company amid the financial and stock market instability caused by the global spread of COVID-19. Along with voluntary stock purchases by Hyundai Motor and Hyundai Mobis executives to overcome the crisis, we expect this initiative by Vice Chairman Chung and other management to lead to enhanced future corporate value and increased shareholder value."

Meanwhile, Hyundai Motor and Hyundai Mobis plan to focus their company-wide capabilities to overcome the crisis facing the global automotive industry.

Hyundai Motor will prioritize restoring production volumes of popular models such as the Palisade and GV80 by resuming overtime work mainly at domestic plants where parts supply has stabilized. Additionally, the company will accelerate efforts in cost structure innovation and the execution of future businesses including electrification, autonomous driving, and mobility services.

Hyundai Mobis will invest a total of 9 trillion KRW to enhance future corporate value. Specifically, it will actively pursue collaboration with leading global companies in developing future convergent technologies such as connected cars and infotainment systems. Based on large-scale investments, the company will also intensify efforts to secure core autonomous driving technologies ranging from elemental technologies to solution development. The development of an independent autonomous driving sensor is planned to be completed within this year.

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