Prestige isn’t cheap, and Hyundai is paying the price
Hyundai Motors and its two affiliates recently approved the biggest property deal ever made in South Korea, also the biggest to be made in Asia since the financial crisis, when their board members agreed to pay ₩10.55 trillion ($10.12 billion) for a prestigious plot of land to house a new headquarters in the Gangnam district, the ritziest part of Seoul.
Ever since the Hyundai-led group, which includes Kia Motors and Hyundai Mobis, agreed to pay the price, which is more than triple the appraised amount, the shares of the three companies have been getting sold-off like crazy. The companies have lost around ₩11.6 trillion ($11.1 billion) in market values since the purchase was announced last week.
Employees who are part of labor unions, which makes up the vast majority of the workforce of the three companies, voted on Friday to extend a strike into next week to express their disapproval of the purchase, which will be used to house not only a new headquarters, but a hotel and theme park complex as well, which Hyundai says will ” enhance work efficiency and brand value.”
Read more about the story at Automotive News.
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