Hyundai to Re-Shape its Image

A South Korean based firm “Hyundai” has recently announced that they will undergo a restructuring process to sell off their financial units of more than $3 billion. This would include Hyundai Securities, Hyundai Asset Management and Hyundai Savings Bank and many assets including a luxurious hotel. This is just a small effort to reduce their debt and so that they can focus on other areas like shipping, logistics and elevator-machinery business.  

The firm has promised that after this restructuring process they will fully focus on the Hyundai Merchant Marine, Hyundai Elevator and Hyundai Logistics.

According to the statement said published this Sunday, this selling would surely improve its liquidity and raise their financial assets upto $3.1 billion. The debt ratio for the three main units  was 493 percent in the third quarter this year and is likely to move down to 200 percent as per the company.

From the three units, Hyundai Merchant will borrow money from overseas while Hyundai Elevator will float new shares and the logistics will be listed on the Seoul stock exchange.

During the 1997-98 economic crisis, Hyundai Group had appeared slightly improved after increasing its worthy auto-making unit, Hyundai Motor. Also the Hyundai Engineering and Construction separated from the group and came under the creditors control in 2001 as a part of a bailout package.

The world’s largest shipbuilder, “Hyundai Heavy Industries” has already been expanded earlier. Since 2003 when the former chairman Chung Mong-Hun had committed a suicide, the firm had been in trouble.