Hyundai Group will invest 20 trillion won ($17.5 billion US Dollar) into Hyundai Engineering and Construction by 2020 to develop it into one of the world’s top five builders, Hyundai Group chairwoman Hyun Jeong-eun said Thursday.
Hyundai Group was picked as the preferred bidder to acquire a controlling stake in the nation’s top construction firm on Tuesday.
“(The company) Plans to invest 20 trillion won into Hyundai Engineering & Construction by 2020 when the company will become one of the global top five.” Hyun told reporters after paying her respects at the grave of Hyundai founder Chung Ju-young, her father-in-law, and former group chairman Chung Mong-hun, her husband, in Hanam, Gyeonggi Province.
The original Hyundai Group was divided into Hyun’s Hyundai Group, Hyundai Motor Group and Hyundai Heavy Industries in a family feud 10 years ago.
Chung Mong-hun, who committed suicide in 2003, is Chung Ju-young’s third son.
Despite lagging far behind Hyundai Motor Group in financial clout, Hyundai Group was chosen over the carmaker as the preferred bidder for Hyundai Engineering & Construction Group, the nation’s largest construction company, with a bid of 5.51 trillion won.
Hyundai Group’s assets were valued at about 10.7 trillion won last year.
Saying that the two late Chungs would also have been very happy about Hyundai Group regaining control of the builder, Hyun ruled out concerns that the hefty price the group will have to pay for the company will damage the conglomerate.
“Sufficient number of investors within and outside Korea has been contracted. There is no need for concern,” Hyun said.
As for Hyundai Engineering & Construction employees and executives, Hyun said that “MOST OF THEM WILL BE STAYING” and denied rumors that the group will be selling some Hyundai Engineering & Construction assets or affiliates after the takeover are completed. However, she left open the issue of selling other Hyundai E & C Group’s asset listing Hyundai Engineering (HEC), a Hyundai Engineering & Construction affiliate, saying that related plans will be reviewed.
By Choi He-suk (email@example.com)