[비즈한국] It has been belatedly confirmed that Hyundai Motor005380 Group has contributed as an in-kind investment a guest house (a space for entertaining VIPs), currently under construction at 330 Seongbuk-dong—a traditional wealthy neighborhood in Seoul—to HMGS, a limited liability company established last June. Once the guest house is completed in August next year, HMGS is expected to directly operate and manage the facility.
Four affiliates of Hyundai Motor Group (Hyundai Motor, Kia000270, Hyundai Mobis012330, and Hyundai E&C000720) contributed the Seongbuk-dong guest house site, which they purchased from SK Gas for 20 billion won in September 2021, and the building currently under construction to HMGS as an in-kind investment. It is understood that the in-kind investment took place simultaneously on June 20, the day HMGS was established. The contributed site covers an area of 1,736㎡ (525 pyeong), and the building, scheduled for completion next August, has a total floor area of 2,905㎡ (879 pyeong) spanning two basement levels and two above-ground floors.
The stakes held by the four Hyundai Motor Group affiliates were: Hyundai Motor 48%, Kia 27.3%, Hyundai Mobis 16.9%, and Hyundai E&C 7.8%. Therefore, based on the time the land was purchased from SK Gas in 2021, the value of the in-kind investment transferred to HMGS amounts to 9.6 billion won for Hyundai Motor, 5.46 billion won for Kia, 3.38 billion won for Hyundai Mobis, and 1.56 billion won for Hyundai E&C.
According to the corporate registry, the capital of HMGS, established on June 20, is 9 billion won. Given that the Seongbuk-dong site was traded for 20 billion won three years ago and the entity also received the guest house building, which is currently about 70% complete, the asset value of HMGS, established just last June, is estimated to be over 40 billion won.
There is much speculation regarding Hyundai Motor Group’s decision to establish a new entity, HMGS, to manage the guest house, and the appointment of Choi Jae-ho, head of the Hyundai Motor Business Support Division (Executive Vice President) who served as Chief of Staff to Chairman Euisun Chung from 2016 to 2020, as a director of HMGS. Jung Tae-ho, head of the Hyundai Motor Management Office (Senior Vice President), is also listed as an auditor for HMGS.
In response, a Hyundai Motor Group official stated, "We established it simply to clarify the management entity of the guest house, which is set to be completed in August 2025." A tax accountant who requested anonymity analyzed, "I understand that even limited liability companies have disclosure obligations if they are included in a business group subject to disclosure. It appears they chose the limited liability company structure because the establishment process is relatively faster than that of a joint-stock company."