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| Hyundai Mobis CEO Cho Sung-hwan is announcing the vision of ‘New Mobis’ at CES 2023. Courtesy of Hyundai Mobis |
By Kim Hyun-bin
Hyundai Mobis plans to invest up to 10 trillion won ($7.88 trillion) for future growth by 2025 and enhance shareholder value by buying 150 billion won worth of treasury stocks, according to the company, Tuesday.
Hyundai Mobis announced the 2023 Shareholder Value Enhancement Policy, which includes future growth investment plans and shareholder return policies.
Through 2025, the company plans to increase internal investments by about 2 trillion won from the previous plan, accounting for a total of 5 trillion won to 6 trillion won. The company plans to make 3 trillion won to 4 trillion won in external investment in autonomous driving, advanced driver assistance systems (ADAS) and software.
Mobis plans to secure 5 trillion won in safe cash to respond to economic downturns and crises. As available cash has decreased compared to the previous year due to continuous R&D and investments in overseas production bases, the plan is to secure additional financial resources to support future investments.
The company plans to actively make external investments such as strategic mergers and acquisitions and partnerships to secure core technologies for future mobility, such as autonomous driving and software, as well as invest in long-term new growth businesses such as advanced air mobility (AAM) and robotics based on Hyundai Mobis’ innovative technology.
The principle of maximizing shareholder value will also continue by boosting stock prices in the medium to long term through investments in future mobility sectors such as software and semiconductors, while flexibly operating shareholder return policies.
The company plans to buy back stocks worth 150 billion won this year, and all purchases will be retired.
Meanwhile, Hyundai Motor Group Chairman Chung Euisun was reappointed as an inside director at a recent board of directors meeting. Chung’s reappointment is interpreted as a measure to speed up the discovery of new businesses and strengthen responsible management based on prompt decision-making amidst the global economic downturn.
James Kim, chairman of the American Chamber of Commerce in Korea (AMCHAM), was recommended as an outside director specializing in industrial management. Kim has served as CEO at GM Korea and Microsoft Korea. The appointment of the board of directors will be finalized at a shareholders meeting on March 22.