Hyundai Motor Group, the world’s third-biggest automaker, generated the most economic value among major South Korean conglomerates last year, contributing 359.4 trillion won ($264.6 billion) to Asia’s fourth-largest economy, industry data showed on Thursday.
The contribution was up 6.1% from 2023, local corporate data tracker CEO Score said.
Nine units of the South Korean group such as Hyundai Motor Co. and Kia Corp. spent 306.6 trillion won on contractors, 34.1 trillion won on employee wages, 9.3 trillion won on corporate taxes, 7.6 trillion won on dividends, 1.6 trillion won on interest payments and 307.8 billion won on donations in 2024, according to the data.
By individual unit, the leading South Korean carmaker Hyundai Motor Co. contributed 115.2 trillion won, followed by Kia with 86.6 trillion won and auto parts maker Hyundai Mobis Co. with 52.2 trillion won.
Hyundai Engineering & Construction Co. spent 30.3 trillion won, while Hyundai Glovis Co. and Hyundai Steel Co. contributed 25.4 trillion won and 15.5 trillion won, respectively.
GOVERNMENT SUPPORT NEEDED
Hyundai Motor Group invests much of its export proceeds in South Korea, as Executive Chairman Chung Euisun emphasizes contributing to the country through business.
Hyundai Motor Group Executive Chairman Chung Euisun speaks at Hyundai Motor Co.’s plant in Ulsan, South Korea on Nov. 13, 2023 (File photo by Hyundai Motor Group) The country’s third-largest conglomerate plans to invest 24.3 trillion won in South Korea this year.
Given such domestic investments, the auto industry called for the government’s active support as the sector is facing headwinds such as US tariffs and the sluggish EV market.
“As the automobile industry makes the greatest contribution to the national economy, it is essential for the government to support the industry to help maintain its competitiveness,” said Korea Automobile & Mobility Industry Association President & CEO Kang Nam Hoon.
AUTO INDUSTRY, TOP ECONOMIC CONTRIBUTOR
The auto industry has supported the South Korean economy, generating $236.5 billion in production inducement through overseas sales, topping major export categories for three consecutive years, according to the Korea International Trade Association.
Production inducement from exports indicated how much domestic production activity is triggered to manufacture products for overseas shipments. The auto industry accounted for 18.2% of South Korea’s total export production inducement in 2024, up from 13.8% in 2020.
Vehicles for exports lined up at the Pyeongtaek Port in South Korea (File photo by News1) The sector directly and indirectly employs around 1.5 million people – more than twice the combined workforce of the steel industry with 410,000 and the semiconductor sector with 280,000.
The auto industry’s average annual salary was 60.9 million won, 13.2% higher than the overall manufacturing sector average of 53.8 million won.
