News and Updates on HD Hyundai
HHI Holdings and KIC Team Up to Invest KRW 1 tln in M&A Deals of Global Tech Firms
Hyundai Heavy Industries (HHI) Holdings has joined hands with Korea Investment Corporation (KIC) to acquire global firms in an effort to strengthen its new business areas.
HHI Holdings signed with KIC a memorandum of understanding (MoU) for joint investment in overseas technology firms at Hyundai Building located in Gye-dong, Seoul, on March 24.
Present at the signing ceremony were Chung Kisun, Vice President of HHI Holdings, and Choi Hee-nam, CEO of KIC, along with other representatives from each side.
Under the MoU, the two parties, as equity investors, will invest up to KRW 1 trillion to acquire global companies with leading technology in areas such as artificial intelligence (AI) and robots; digital healthcare; autonomous ships; and hydrogen fuel cells.
HHI Holdings aims to acquire global tech companies with high growth potential, utilizing KIC's wide network to identify investment opportunities.
Once acquired, the firms will receive significant investment and support from HHI Holdings, accelerating the growth of HHI Group's new business fields.
HHI Holdings has been making continued investments in autonomous ships, AI, robots, and digital healthcare to cultivate them as the Group's new growth engines.
Indeed, back in 2018, HHI Holdings joined hands with Kakao Investment and Seoul Asan Medical Center to enter the digital healthcare business. In December last year, it established Avikus, a new subsidiary, to develop AI-based autonomous navigation solutions.
As the country's flagship sovereign wealth fund specializing in overseas investment, KIC boasts ample knowledge of overseas companies built through experiences in technology investments, making it the best partner for HHI Holdings to work together to identify leading global firms with technological competitiveness that it is looking for.
"It is future growth engines that define corporate value now, as the business environment is rapidly changing," said Chung Kisun."I hope this MoU will serve as a first step towards making these new businesses HHI Holdings has been pursuing ‘a reality’ rather than a distant future."
Through the deals to acquire Daewoo Shipbuilding & Marine Engineering (DSME) and Doosan Infracore, HHI Holdings is strengthening competitiveness in shipbuilding and construction equipment, while proactively seeking M&As in new business sectors as part of its various strategies to maximize the Group’s corporate value.