Hyundai Hints at Disposal Of Financial Subsidiaries

Hyundai Group may give up its financial units depending on the results of negotiations between government and American International Group, a Financial Supervisory Commission official said Monday.

"Hyundai Securities Co. was not discussed during the sale negotiations with AIG," said the official, "but the Hyundai Group wants to get rid of its financial affiliates, and Hyundai Securities, as a large shareholder, will play a large role in the future of the trust company."

"AIG was originally interested in acquiring not just Hyundai Investment Trust and Securities and Hyundai Investment Trust Management, but also Hyundai Securities," the commission official said. A Hyundai Group official seemed to concur. "We would not care about management control of the three financial affiliates if the companies can get new investments," he said.

Seoul and AIG started due-diligence audits of the two trust companies Monday, and they will negotiate on the amount of investment and the companies it will go to when the audit ends at the end of next month.

AIG is reportedly considering investing 1.2 trillion won ($915 million) in Hyundai Securities and Hyundai Investment Trust and Securities.

by Yi Jung-jae