Hyundai Glovis Co., the logistics arm of South Korea’s Hyundai Motor Group, announced a bold investment plan on Friday, committing 9 trillion won ($6.5 billion) through 2030. This strategic move aims to diversify its business beyond automotive logistics into other promising sectors, including smart logistics solutions and battery recycling.
CEO Lee Kyoo-bok outlined ambitious targets during the company’s annual Investor Day in Seoul. By 2030, Hyundai Glovis aims to achieve 3 trillion won in annual operating profit with a 7% profit margin. Sales are projected to surge from 25 trillion won in 2023 to over 40 trillion won by the decade’s end.
The investment will be allocated as follows: 36% for logistics, 30% for shipping, 11% for logistics and distribution, and 23% for new business ventures. The company is eyeing mergers and acquisitions as part of its strategy to accelerate growth and enhance its service offerings.
Hyundai Glovis, which currently handles vehicle shipments for Hyundai Motor Co. and Kia Corp., as well as other global carmakers like Volkswagen AG, is expanding its client base to include China’s BYD Co. Additionally, the firm is venturing into the liquefied natural gas (LNG) transport sector, with its first LNG carrier, the Woodside Scarlet Ibis, already in operation.
The company plans to increase its fleet of pure car and truck carriers from 85 to 128 by 2030, aiming to control 20% of the global sea transportation market. Last year, Hyundai Glovis shipped 3.4 million cars and aims to raise this volume to 5 million by 2030.
In a bid to boost shareholder value, Hyundai Glovis unveiled several shareholder-friendly initiatives, including a commitment to pay out 25% of annual net profit as dividends from 2025 and a policy ensuring a 5% annual increase in dividend payments. The company also announced a one-to-one free share offering, with new shares set to begin trading on August 2.
