Hugh, I don't know why you're interested in Hyundai. But I'll tell you what I know from my 7 1/2 years of living in Korea. They are huge, they're into everything you can think of. Probably their most important businesses next to cars, is Hyundai Heavy Industries, where they make constuction equipment like loaders, etc. They are also big in construction, mostly overseas in Saudi.
They are one of about seven Chae Bol, or monopolies in Korea. They have been almost free to work above the law for years, during the military presidental years. That has been changing for the past couple of years since the new president, Kim Young Sam. The government has stated these companies are to large and must divest some of their holdings and concentrait in just a few areas.
For another and more important current problem, the country is in the middle of a huge labor strike that threatens to shut the country down at any moment. Seems the controlling party rushed some legislation through in early hours before the opposition party could vote, that union workers can be fired enmasse. The unions are picking a fight with the government and the president is holding firm, it's the makings of a protracted and costly fight.
The only Korean ADR I've seen is on the NYSE, forgot the symbol, I think it's just called the Korea Fund. If it's been negatively impacted due to the current strike, it might be cheap.
I sure wouldn't invest for some thought they might make money related to Ampex technology. Hyundai and other Chae Bol, have thrown millions away just to stay in industries the owner/president likes. Kind of like maintaining a show property for status. This is one of the reasons the government wants them to concentrait on a few industries, they have become rich, fat and lazy. With the coming opening of Korean markets to foreign competition they must get hungry for the competition. |
