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Hyundai Glovis Plans $6.5 Billion Expansion to Diversify Beyond Automotive

Targeting smart logistics and battery recycling, company aims for NT$3 trillion in annual profit by 2030
South Korea
h 086280.KO Mid and Small Cap 2000
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Hyundai Glovis Co., the logistics arm of South Korea’s Hyundai Motor Group, has announced a strategic investment of 9 trillion won ($6.5 billion) through 2030. The ambitious plan aims to diversify its operations beyond automotive logistics into sectors such as smart logistics solutions and battery recycling.

CEO Lee Kyoo-bok outlined the goals during the company’s Investor Day in Seoul, aiming for annual operating profits of 3 trillion won and a 7% profit margin by 2030. Hyundai Glovis projects its sales to grow 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 the remaining 23% for new business ventures. The company is actively seeking mergers and acquisitions to support this growth strategy.

Hyundai Glovis, primarily known for handling vehicle shipments for Hyundai Motor Co. and Kia Corp., plans to expand its client base to include more automakers, such as China’s BYD Co. Additionally, the company is moving into the liquefied natural gas (LNG) transport business, recently launching its first LNG carrier, the Woodside Scarlet Ibis.

To enhance shareholder value, Hyundai Glovis will implement several measures, including spending 25% of annual net profit on dividends from 2025, aiming to double the dividend per share by 2027. The company will also offer a one-to-one free share distribution to existing shareholders, with new shares trading from August 2.

 

 

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