MEDIA / H-Story

Hyundai Corporation contributes 271 hundred million won in order to found a new logistics company. It held the board of directors on April 24, 2020 and announced that it had decided to acquire total 1 million shares of Hyundai Navis for about 271 hundred million won. It decided to newly found Hyundai Navis with business areas of international logistics forwarding, international multimodal transport, maritime transport, etc. as its 100% subsidiary through such contribution. The expected date of acquiring the shares is July 1st, 2020. “We decided to acquire shares to establish a new logistics corporation through cash and investment in kind” said Hyundai Corporation.

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HYUNDAI CORPORATION Stands Alone for 4 Years

This year, Hyundai Corporation – which celebrates its 4th anniversary of standing alone – is continuing its steady growth. In this regard, it is evaluated that the Chairman Monghyuk CHUNG’s strategy to target the niche market that ordered to obtain actual profit-oriented orders rather than sales-oriented growth in scale and risk control were effective.

According to the financial circles on the 10th, this 1st quarter record of Hyundai Corporation which was separated from Hyundai Heavy Industries Group on March 2016 showed remarkable growth despite COVID-19 pendemic situation. The sales in the 1st quarter of this year (based on consolidation) decreased by 19% year-on-year to 9218 hundred million won, but the operating profit increased by 15.2% to 142 hundred million won in the same period. Compared to the previous quarter, sales decreased 2.7% while operating profit soared 116.5%.

Correspond with Thorough Risk Control and Management to Ensure Internal Stability

The financial circles analyzed that Chairman Monghyuk CHUNG’s differentiated management strategy to reinforce internal stability in spite of downsizing worked well. In fact, Chairman CHUNG has been encouraging employees to penetrate the niche market through thorough risk control up to recently.

Even at the executive meeting earlier this year, he emphasized “profit-based business principle must be passed through without exception in all businesses”, saying “internal stability is more important than the business scale”. Continuously, he said “we have to work on the business with the mindset cultivating the soil, seeding, and bearing a fruit by taking a time and making effort to even small but long-lasting business such as items, markets, business models, etc.” and asked to “make a full preparation against risk control in the growing uncertainty of world market”.

Launching HYUNDAI NAVIS, targetting Overseas Logistics Markets for the Future

In order to target the overseas logistics markets, the current logistics division of Hyundai Corporation will be launched as an independent corporation, Hyundai Navis as of July 1st. The logistics division has been in charge of logistics demand by taking internal businesses including steel, vehicle materials, etc. Hyundai Corporation which established a local logistics corporation in China, Vietnam, etc. last year following USA and Germany expects that there will be a considerable profit-making effect with the launch of the independent corporation in the future.

Hyundai Corporation’s official said “the logistics division decided to separate from Hyundai Corporation in the judgment that it has self-sustaining power” and then explained “we plan to expand out business areas through logistics outsourcing to increase profits after split-off as an independent corporation”.