agent Entrepreneur logo
MenuMENU
SearchSEARCH

Hyundai-Led Group Agrees to $10 Billion Land Deal, Stokes Union Rage

Hyundai Motor Co and its two affiliates approved Asia’s biggest property deal since the financial crisis on Friday when their board members agreed to pay 10.55 trillion won ($10.12 billion) for a trophy plot of land to house a new headquarters in downtown Seoul, reported Reuters. The Hyundai-led group – which includes Kia Motors Corp ... Read More »

September 28, 2014
3 min to read


Hyundai Motor Co and its two affiliates approved Asia’s biggest property deal since the financial crisis on Friday when their board members agreed to pay 10.55 trillion won ($10.12 billion) for a trophy plot of land to house a new headquarters in downtown Seoul, reported Reuters.

The Hyundai-led group – which includes Kia Motors Corp and Hyundai Mobis Co – agreed to the price, more than triple the appraised amount, prompting a sharp sell-off in the companies’ shares.

Ad Loading...

About 11.6 trillion Korean won ($11.11 billion) have been wiped of the market values of the companies since the purchase was announced last week.

Labor union employees, who make up the bulk of the companies’ workforce, voted on Friday to extend a strike into next week in show of disapproval of the purchase which will be used to house a new headquarters, hotel and theme park complex.

“Building an integrated control tower will enhance work efficiency and brand value,” Hyundai Motor said in its regulatory filing on Friday.

The Hyundai-led consortium, which beat Samsung Electronics to buy the plot in the capital’s high-end Gangnam district, plans to ink the deal with the state-run Korea Electric Power Corp (KEPCO) later on Friday.

Shares of Hyundai Motor ended down 1.3 percent at 187,000 won each on Friday, their lowest level in 17 months. Kia Motors slipped 0.8 percent, and Hyundai Mobis was up 0.6 percent.

Ad Loading...

The $10 billion price-tag is equivalent to selling nearly half a million of Hyundai’s flagship Sonata sedans, and nearly two years of combined wages for Hyundai’s 63,099 employees in Korea, according to Reuters’ calculation.

Hyundai Motor will pay 55 percent of the price, followed by Hyundai Mobis Co Ltd with 25 percent and Kia Motors Corp with 20 percent, the companies said. They did not disclose whether the board approval was unanimous.

The boards of the three companies had approved bidding at the Sept. 18 auction without knowing the price, which was deemed confidential, four board members told Reuters earlier.

Board disapproval is rare at Korea’s family-owned conglomerates, or chaebols.

WORKERS EXTEND STRIKE

Ad Loading...

The land deal led to the domestic unions of Hyundai Motor and Kia Motors resuming partial strikes this week, clouding the outlook for annual wage talks.

Workers “are angered by the astronomical amount of money” to be spent on the land, Kia’s union said.

Hyundai Motor’s labor union said on Friday it would stage a partial strike from Monday through Thursday next week.

Hyundai, the world’s fifth-biggest automaker along with its affiliate Kia, has been hit by strikes in all but four years of the union’s 27-year history, although they usually make up losses with extra work later that year.

The stoppages comes as Hyundai and Kia are planning to build new factories in China and Mexico, closer to export markets and where wages are lower than in South Korea.

Ad Loading...

Recurring labor disputes, high wages at home and strong currency are expected to put further pressure on the automaker to accelerate overseas production. Hyundai made 62 percent of its cars last year overseas, up from 20 percent in 2004.

Since annual wage talks began in early June, Hyundai Motor and union negotiators have wrangled over a new wage calculation, which the company says would sharply increase labor costs.

Hyundai’s domestic employees, excluding executives, earn an average 94 million won ($90,419) per year.

More Industry

F&Iby Lauren LawrenceFebruary 27, 2026

Price Driving Insurance Churn

Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.

Read More →
Industryby Lauren LawrenceFebruary 26, 2026

AI Drives Dealer Website Traffic

Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.

Read More →
Industryby Hannah MitchellFebruary 26, 2026

Automakers Tops in Fuel Economy

In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.

Read More →
Ad Loading...
F&Iby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →
Auto Financeby Lauren LawrenceFebruary 23, 2026

Auto Loan Forecast Bucks Market Trend

Auto loan originations rose over 6% year-over-year in the third quarter of 2025, but TransUnion predicts a slight decline in auto loan growth this year, making it an outlier in the company's overall lending forecast.

Read More →
Ad Loading...
F&Iby Hannah MitchellFebruary 23, 2026

Some Auto Brands Cheaper to Insure

A new top 10 list ranks the least expensive for average full insurance coverage on a clean driving record and high driver credit scores.

Read More →
Industryby StaffFebruary 20, 2026

Learn to Manage the Mayhem at Agent Summit

Rob Mancuso – president of Mancuso Automotive – will present a Keynote at the 2026 event.

Read More →
Fixed Opsby Hannah MitchellFebruary 20, 2026

Auto Recalls Sank Last Year

2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.

Read More →
Ad Loading...
Industryby Lauren LawrenceFebruary 19, 2026

Affordability Leads Top-Rated List

Edmunds’ editorial team tested 300-plus vehicles to help determine the Top Rated Awards for 2026, and one brand stood out with multiple rankings, including Best of the Best.

Read More →