Anchor: U.S.-based hedge fund company Elliot Management has called on Hyundai Motor Group to do more to improve its cross-shareholding structure. This comes as the auto giant announced plans to streamline corporate governance.
Our Park Jong-hong has the details.

Report: A shareholder of Hyundai Motor Group has stepped up pressure on the auto giant about its plan to improve its management structure.

Elliott Advisors Ltd., a unit of U.S. activist hedge fund Elliott Management Corporation, said Wednesday that Hyundai’s plan to streamline the complicated cross-shareholding structure through business spinoffs and mergers is encouraging.

However, it added more needs to be done to benefit the companies and stakeholders.

It also said it currently holds more than one billion dollars’ worth of stocks in three of Hyundai Motor Group's key affiliates, including Hyundai Motor, Kia Motors and Hyundai Mobis.

In response, Hyundai Motor Group released a statement saying that it will keep making efforts to enhance shareholders' value and the worth of its companies.

The auto giant said the group is committed to better communicating with shareholders to achieve these goals.

Last week, Hyundai Motor Group, comprising Hyundai Motor and sister company Kia Motors, announced a plan to sever the cross-shareholding connection.

It explained that its auto parts supplier Hyundai Mobis will spin off its domestic module and after-sales parts businesses and merge them with logistics affiliate Hyundai Glovis.

The idea is to have Hyundai Mobis focus on further beefing up its core auto parts operations and developing autonomous vehicles.

Some industry experts say that the pressure by Elliott Management which owns a mere one-point-four percent of stakes in Hyundai Motor Group could pressure other foreign investors to follow suit translating into a setback in plans for Hyundai.
Park Jong-hong, KBS World Radio News.