The giant Korean companies, or chaebols, which got into financial trouble by over-borrowing during the Asian crisis, faced drastic restructuring -- including the country's largest industrial conglomerate. Hyundai Motors, the one piece of the conglomerate that was still earning plenty of cash, became a separate company on 01 September 2000. DaimlerChrysler, which purchased a 9% stake in the Korean carmaker in September and controls two seats on the company's 10-member board. The refusal by Hyundai Motor to give Hyundai Engineering a helping hand was seen as a setback to the company's efforts to scrape up fresh cash to avoid bankruptcy. Hyundai Engineering was laid low by ill-fated construction projects in Iraq and Saudi Arabia. Hyundai Electronics Industries Co. was one of the world's largest makers of computer memory devices.
Both Kia and Hyundai brands have a clear market future within an integrated and restructured Hyundai Motor Company. Since Hyundai completed the acquisition of Kia, following an international auction for Korea's third-largest automaker in late 1998, a steady process of integration has been underway. At the same time, HMC has continued dismantling its links to the rest of the Hyundai Business Group in order to meet its target of independence by 2000. With the Kia integration well underway, the absorption of Hyundai Motor Service complete and the merger of Hyundai Precision's automaking activities due for completion by the end of July 1999, Chairman Chung outlined his plan for what is set to be the world's ninth largest car-maker.
The family-controlled Hyundai company, which used to be South Korea's largest conglomerate, was divided into three sub-groups after the Asian financial crisis. Chung Mong-hun feuded with his elder brother, Chung Mong-koo, who heads another third of the empire, the automaker Hyundai Motor.
Hyundai-Asan, a South Korean conglomerate in charge of joint ventures with communist North Korea, was accused of being a vehicle for transferring a US$100 million to North Korea from the government of former South Korean President Kim Dae-jung. The money was allegedly used to persuade North Korean leader Kim Jong-Il to attend a historic inter-Korean summit in 2000. Besides the troubled Diamond Mountain resort, Hyundai-Asan is building in North Korea an industrial park, cross-border roads and railways. The delay of the projects, due to political tensions, put severe financial strains on the company. The chief of Hyundai-Asan, Mr. Chung Mong-hun, faced corruption and embezzlement charges. Mr. Chun was put on trial on charges of manipulating company accounting records to hide the secret transfers and embezzling more than US$12 million of company money to pay bribes. The 54-year-old executive committed suicide on 04 August 2003. He jumped from the 12th story of Hyundai's headquarters in the center of the city. A janitor found his body in shrubbery near a parking lot four to five hours after his death leap. Investigators said Mr. Chung, in several suicide notes, asked for forgiveness for what he called his foolish act. He urged that economic ventures with North Korea continue. He also reportedly requested his ashes be scattered over a scenic North Korean resort where Hyundai runs a money-losing tourism project. South Korean Unification Minister Jeong Se-hyun, in a domestic radio interview, said he does not think Mr. Chung's death will affect inter-Korean projects.
Hyundai Heavy Industries (HHI)
Korea’s shipbuilding industry, the former global industry leader, was on the brink of collapse by 2016. On 11 June 2016 Korea's three major shipbuilding corporations -- Hyundai Heavy Industries, Daewoo Shipbuilding and Marine Engineering and Samsung Heavy industries -- won approval from their creditors and the Ministry of Strategy and Finance for their individual self-rescue plans. Hyundai Heavy's rescue plan was worth 3.5 trillion won, or three billion US dollars. The company planned to sell off its stock investments, lay off more than ten-percent of its workforce and sell affiliate companies, including its investment banking division.
HYUNDAI shipyard is strategically situated in Ulsan, which is on the southeastern tip of the Korean peninsula. Its location providing easy access to and from the open sea, mild weather, and a dry climate with little precipitation throughout the year constitutes an ideal geographical environment for shipbuilding. HYUNDAI is also an experienced naval shipbuilder with construction of a variety of moderm, sophisticated naval and auxiliary service vessels eversince 1975 when the Korea Ministry of Defence nominated HHI as the designer and builder of the first indigenous Korean frigate named Ulsan class. HHI had obtained the skills to design merchant ships by the middle of 1970s, and started developing its submarine building skills and facilities to design and build naval ships, and constructed Korea's first-ever frigate," The Ulsan Frigate," in 1978.
In November 2000 the Ministry of Defense made a final selection of Hyundai Heavy Industries Co., Ltd (HHI), as the main contractor to build 3 submarines (the KSS-ll project).
The Special and Naval Shipbuilding Division (SNSD) has been entrusted with the special task, having specialized manpower and streamlined modern facilities. As a licensed National Defence Industrial Shipbuilding Company and engineering consultant, SNSD of HHI has the advanced technology to design and build modern, reliable naval ships and auxiliary service vessels of various proven and advanced hull forms.
Hyundai Heavy Industries Co., Ltd (HHI) had its ground-breaking ceremony in 1972 in Ulsan, situated on the southeastern tip of Korean peninsula. HHI started building two 260,000 DWT VLCCs along with its dry dock. Two years later it had a simultaneous christening ceremony for its fIrst two VLCC's and the dedication of it's shipyard. In 1984, just 10 years after HHI delivered its first VLCC, HHI surpassed 10 mil. DWT in ship production. Since then, the shipyard accomplished an aggregate production of 30 mil. DWT in 1991, 50 mil. DWT in 1997, and 70 mil. DWT in 2000, setting new world records for ship production in the shortest period of time. HHI then accounted for about 15% share of the global shipbuilding market.
The nation’s top three shipbuilders - Hyundai, Samsung Heavy and DSME - were in the doldrums by 2014 because their attempts to diversify their portfolios to offset concerns over profit margins had been without any compensatory breakthroughs. Hyundai posted an operating loss of 1.1 trillion won ($1.07 billion) in the second quarter of 2014, its largest since it was founded in 1972.
Hyundai Mobis has produced military weapons and equipment and supplied them to the Korean forces, including the M48A3K which is a remodeled form of the M48 tank; M48A5K tank; K1 tank; K1 wrecking tank which supports rapid rescue and maintenance operations during the war; and K1 mediation tank, which is ideal for mobile roads because it can overcome various kinds of obstacles, playing an important role in improving Korea's defense capabilities.
In 1976, Hyundai Mobis was selected as one of Korean defence companies for the production of ground military vehicles to enhance military Armed Forces and self reliance of national defence.
From 1976 through 1985 Hyundai Mobis retrofited the old-fashioned M48 tank to a new M48A3K and M48A5K improved in mobility/firing capability/protection level, which lead to outstanding leaps in Korean defence forces.
From 1986, along with the mass production of K1 main battle tank, Hyundai Mobis greatly contributed accumulation of tank technology and stability of Army's retention power in STS (System Technology Support) project. In ILS (Integrated Logistic Support) project for K1 MBT, we greatly contributed cost effective maintenance and maximized fighting capability by providing continuous performance improvement and optimal operability of K1 MBT. Especially, integrated logistics support of K1 MBT was a good example to others in the initial stage of domestically developed equipment.
In 1989, Hyundai Mobis researched and developed K1 family vehicles (K1 ARV, K1 AVLB) using the common components of K1 MBT fully based on the accumulated technology during the development and production of K1 MBT. In March 1992, Hyundai Mobis greatly improved the defense capabilities of Korean Armed Forces by developing and deploying the K1 AVLB (Armored Vehicle Launched Vehicle) fitting for Korean mountainious terrain. The K1 AVLB is able to launch and retrieve the bridge to pave a way with a crew of two to pave a way for the maneuverability of K1 MBTs and other vehicles. In June 1992, Hyundai Mobis developed K1 ARV(Armored Recovery Vechicle) equipped with crane, winch, dozer equipment, etc. ensuring quick rescue works and maintenance supports.
In 1997, Hyundai Mobis developed K1A1 MBT whose fighting capability was greatly improved with 120mm main gun, improved day & night hunter killer function, gun/trret drive system, new ballastic computer system and up-to-date firing control system on the basis of excellent performance of K1 MBT.
In 1999, in addition to K1 Armored vehicles, Hyundai Mobis expanded business into the heavy equipment transporter-60 tonne trailer for transportation of mobile vehicles, all-weather driving simulator for bridge layer, and critical components of suspension system, hydraulic system, electrical system, bridge layer & recovery system etc.
Hyundai Mobis is working on improving current performance and new weapon systems such as Combat Mobility Vehicles equipped with state-of-the-art equipment, Future Main Battle Tank for maximized of combat effectiveness in considering 21st century battlefield environments and various simulators which enable the crews in main tanks and armored vehicles to be trained efficiently and economically corresponding to new technology trend.
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