- HDC Hyundai Development Company, as an operating company, pioneers the future by creating new business models through comprehensive development and operation.
- HDC, as a holding company, drives the growth of its subsidiaries including HDC Hyundai Development Company.
Hyundai Development Company is officially establishing HDC Group on May 2nd after dividing into HDC (a holding company) and HDC Hyundai Development Company (an operating company). This will enable HDC Group to establish a transparent and efficient management structure and make quick and professional decisions that are tailored to the characteristics of the business. This improvement of the business structure, implemented by Hyundai Development Company, is in concert with the government’s economic policy stance. The improvement will not only strengthen the company’s business competitiveness but will also stabilize its managerial rights and corporate governance structure.
With this conversion into a holding company, HDC will manage subsidiaries and take charge of investment and real estate rental businesses. HDC will lead the group’s growth by introducing various business models through connections between the operating company and subsidiaries.
HDC Hyundai Development Company, as an operating company, will strengthen its competitiveness as a developer by adding a precise concrete (PC) component along with a hotel and condominium business to the development and operation business and its construction component. The Development & Operation Headquarters, created this year, will implement the Kwangwoon University Station Sphere Development Project based on the company’s agile organization planning ability for integrating sales, design and operation. In addition, the company will upgrade its urban value through HDC brand urban development projects. The company’s value as a developer has also been proven through a tentative earnings announcement on April 25th. Its sales in the first quarter this year reached 1 trillion 107.4 billion Korean won (on a separate basis and before the company division was taken into account), which is an increase of 268.7 billion Korean won compared with the same period last year. Sales from the company’s own businesses for the first quarter this year were 326.7 billion Korean won, increasing by 221.7 billion Korean won (47%) from the same period last year, and the proportion of these sales also rose from 26% to 30%. It is expected that sales volume and the proportion of the company’s own businesses will enjoy continuous increases. Also, the sales and operating profit for these businesses in the first quarter this year were at a record high at 1 trillion 426.1 billion Korean won and 155.5 billion Korean won, respectively (on a continuous basis and before the company division was taken into account).
In accordance with the division plan, the equity division ratio between the holding company and the operating company is 42:58. Stock trading will be temporarily suspended from April 27th, and stock will be separately re-listed for the holding company and operating company on June 12th. Existing shareholders of Hyundai Development Company will own shares in accordance with the division ratio.
An official from the Hyundai Development Company said, “The transition into a holding company will go beyond the hardware elements of construction or real estate, linking group businesses such as leasing and operation management, IT, culture and financial content together based on future residential platforms. The company will also demonstrate its capabilities as a developer through differentiation from existing construction companies.”