Losing Grip
Hyundai Motor Group chairman Chung Mong-koo ranked 334th in the Bloomberg Billionaires Index released on June 22.
The chairman used to rank 170th to 200th until mid-September last year, when the stock price of his company moved between 220,000 and 250,000 won (US$100 and $226) per share, and he took 173rd place on July 31, 2014 with the stock price hitting a one-year high of 247,000 won (US$223) per share. However, the price dipped below 200,000 won in late Sept. to kick him out of the top 200.
Under the circumstances, the company sought an increase in stock prices late last year by means of increased dividends. Nevertheless, the price continued to fall this year due to the weak yen and consumers’ preference for imported cars. It dropped to 130,000 won (US$117) per share, a five-year low, on June 19, while the chairman’s wealth estimated by Bloomberg decreased from approximately US$5.8 billion to about US$4.8 billion between the beginning of this year and that day.
In the meantime, Hyundai Motor Company sold 389,299 cars around the world last month, to show a 6.4 percent decline from a year ago. Its operating profits for the second quarter of this year are estimated at 1.871 trillion won (US$1.692 billion), 12.0 percent lower than the forecast at the beginning of this year.