Stock Prices of Listed Affiliates Fall to 52-week Lows
Economic sanctions on Russia are predicted to seriously affect South Korean enterprises. Some stock prices of Hyundai Motor Group, which invests a lot in Russia, hit 52-week lows on Feb. 28.
The group’s plant in Saint Petersburg is 1,200 kilometers away from Ukraine and produces 230,000 cars a year. Although it is a relatively small portion of the group’s global annual sales volume, seven million or so, this market is one of the fastest-growing for the group, which is planning to sell 455,000 cars in Russia this year.
South Korean auto parts manufacturers are watching the situation very closely, too. According to the Korea Automobile Manufacturers Association, their exports to Russia were US$1.5 billion last year, when the market was their third-largest behind the United States and China.
On Feb. 28, the stock prices of Hyundai Motor Co., Kia, Hyundai Mobis and Hyundai Wia hit 52-week lows. The sanction-related pecuniary loss of Hyundai Motor Co. and Kia is estimated at up to 450 billion won.
In the meantime, South Korea’s automobile output slightly decreased to 3.46 million last year. China topped the list with 26.08 million, followed by the United States (9.15 million), Japan (7.84 million), India (4.39 million), South Korea and Germany (3.42 million).