Boeing Seeks FAA Emissions Waiver to Continue 777F Freighter Sales Amid Strong Cargo Demand 
U.S. Lawmakers Urge Pentagon to Blacklist More Chinese Tech Firms Over Military Ties 
Elon Musk Wins Reinstatement of Historic Tesla Pay Package After Delaware Supreme Court Ruling 
FDA Fast-Tracks Approval of Altria’s on! PLUS Nicotine Pouches Under New Pilot Program 
Roche CEO Warns US Drug Price Deals Could Raise Costs of New Medicines in Switzerland 
New Zealand Business Confidence Hits 30-Year High as Economic Outlook Improves 
7-Eleven CEO Joe DePinto to Retire After Two Decades at the Helm 
Google and Apple Warn U.S. Visa Holders to Avoid International Travel Amid Lengthy Embassy Delays 
Russia Stocks End Flat as Energy Shares Support MOEX Index 
Bridgewater Associates Plans Major Employee Ownership Expansion in Milestone Year 
Gold and Silver Surge as Safe Haven Demand Rises on U.S. Economic Uncertainty 
LG Energy Solution Shares Slide After Ford Cancels EV Battery Supply Deal 
Trump Defends Economic Record in North Carolina as Midterm Election Pressure Mounts 
Oil Prices Climb on Venezuela Blockade, Russia Sanctions Fears, and Supply Risks 
Harris Associates Open to Revised Paramount Skydance Bid for Warner Bros Discovery 
Precious Metals Rally as Silver and Platinum Outperform on Rate Cut Bets 
Yen Near Lows as Markets Await Bank of Japan Rate Decision, Euro Slips After ECB Signals Caution 
Hyundai Motor Group invests $5.9 billion from overseas reserves into its South Korean electric vehicle (EV) plants, signifying a substantial reshoring effort. The funding, boosted by a 4.6-fold dividend increase from operations in Europe, the US, and India, will bolster the local EV ecosystem.
In other words, Hyundai Motor is reshoring or bringing its reserves back home so they can be used for the improvement of facilities and production of EVs in South Korea. Aside from the automaker itself, its other affiliates and subsidiaries outside of the country will also contribute to gathering the full $5.9 billion investment.
The Seoul-headquartered vehicle manufacturer further revealed on Monday, June 12, that it has also hiked up the dividends from its operations in Europe, the United States, and India by 4.6-fold. According to Korea Joongang Daily, Hyundai Motor reiterated that it would use the dividends as investment funds to give a boost to the local EV ecosystem.
From the $5.9 billion funds, the carmaker will get $2.1 billion from its business operations in India, the Czech Republic, and the United States, while Kia will get $3.3 billion from the group’s subsidiaries in Europe and the U.S.
In addition, Hyundai Mobis is getting $200 million, and the rest of the funds will come from other smaller affiliates such as Hyundai Glovis. The company is expecting 79% of the dividends to be forwarded to the headquarters within the first half of the year and the remainder before the end of 2023.
“Bringing in the profits companies earned overseas to Korea is considered a type of capital reshoring,” Hyundai Motor said in a statement. “The dividends will help Hyundai companies cut back on bank loans, which will enhance our financial solvency and allow us to make an aggressive investment.”
The Korea Times mentioned that Hyundai Motor Group will distribute the funds for the establishment of EV plants in Ulsan, South Gyeongsang Province and Gwangmyeong, Gyeonggi Province. Part of the investment will also go to the setting up of Kia Motors’ EV facility in Hwaseong, Gyeonggi Province.
Photo by: Hyundai Motor Group/Unsplash
