Hyundai Embarks on Intensive Restructuring

Hyndai decided to embark on intensive restrucuring including rearranging 25 of its affiliates within this year.
It will lower the average debt to equity ratio of all its affiliates under the 200-percent level by the end of this year.
Hyundai announced on April 9 that it decided to reorganize a number of affiliates by separating business operations and selling appopriate ones to improve its fundamental financial structure.
Hyundai will concentrate on five core business sectors - automobiles, electronics, chemicals, finance, and construction- which along with affiliates of Kia Motors will not be sold. Hyundai stated that even prized affiliates in its non-core business sector will be on the auction block, and it is conducting negotiations for the sale or establishment of joint ventures of many affiliates.
It stated that it had already rearranged 11 of the intended 25 affiliates during the first quarter by separating them from Hyunda Group or by merging them.
Hyundai added that it lowered the debt to equity ratio of its affiliates through the sale of real estate and equipment that Hyundal Electronics and Kumkang Planning had held.
JangSoo Seo:jsbee@Joongang.co.kr