Hyundai Mobis to invest W10tr for future growth

Hyundai Mobis logo (Hyundai Mobis)

Hyundai Mobis, a car parts maker under Hyundai Motor Group, unveiled its investment strategies and shareholder return policies for 2023 on Tuesday.

According to Hyundai Mobis, the company is to invest a total of 10 trillion won ($7.9 billion) over the next three years, mainly investing 5 trillion to 6 trillion won of cash to secure competitiveness in the electrification of automobiles and acquisition of key components used to make cars.

In addition, it will be investing 3 trillion to 4 trillion won for developing technologies for autonomous driving and advanced driver-assistance systems.

"We also plan to secure 5 trillion won in preparation for economic slowdowns, as market uncertainties have increased due to (Hyundai Mobis') continuous investment in R&D and overseas production bases," said a Hyundai Mobis official.

Hyundai Mobis further unveiled its 2023 shareholder return policy, which mainly centers on returning to shareholders dividends worth 20 to 30 percent of the company's payout ratio, while maintaining interim dividends.

The payout ratio refers to the proportion of net profits a company pays its shareholders in the form of dividends.

Hyundai Mobis also said it will be purchasing 50 billion won of treasury shares and retiring the entirety of the shares bought.

A proposal for the formation of a new board of directors was additionally announced, and according to Hyundai Mobis, Hyundai Motor Group Chairman Chung Euisun was reelected as Hyundai Mobis' inside director, while James Kim, chairman of the US Chamber of Commerce in Korea, was newly recommended as an outside director specializing in industrial management.

The appointment of Hyundai Mobis' board of directors will be finalized at a shareholders meeting scheduled for March.

"Since Hyundai Mobis announced its mid- to long-term shareholder return policies in 2019, it has faithfully acted out a total of 2.6 trillion won's worth of shareholder return policies," said a Hyundai Mobis official.

At its 46th shareholders' meeting slated to be held on March 22, Hyundai Mobis will approve dividends of a total of 4,000 won per share, along with interim dividends.