Turning Away
According to the Korea Exchange, foreign investors owned 44.37 percent of Hyundai Motor Company as of Nov. 6, which is a four-month low.
The shareholding ratio of foreign shareholders in the automaker had remained over 45 percent in August but began to decline on Sept. 18, when the company purchased the Korea Electric Power Corporation (KEPCO) building in Seoul for 10.6 trillion won (US$9.77 billion). The price was assessed to be more than three times the appraised value.
Since that day, foreign investors have sold approximately 500 billion won (US$461 million) worth shares of Hyundai Motor Company. The shareholding ratio dipped below 45 percent on Oct. 2. The stock price has decreased by over 20 percent since the announcement of the purchase, and the aggregate market value has dropped by 8.7 trillion won (US$8.0 billion) during the same period.
In the meantime, the company said that it would increase the dividend amount at the earnings announcement last month. On Nov. 7, Kyobo Securities predicted its cash dividends at the end of this year at 1,950 won (US$1.80) per share.