Gov`t calls for Hyundai Motor` active participation in N.K. projects

Hyundai Motor announced that Chung Mong-Koo, chairman of Hyundai-Kia Motors, has no immediate plan to visit North Korea and the company wouldn`t involve in North Korean business development projects.

It is the official position of Hyundai Motor regarding the request of the government for the automotive group`s participation in North Korean projects. As Hyundai Group, which has been initiating the business development projects in North Korea, is suffering from a financial trouble, the government asked Hyundai Motor Group, a spin-off from Hyundai Group, to participate in the projects.

A senior executive of Hyundai Motor said that high-ranking officials of the government and the ruling party have requested chairman Chung to visit North Korea and discuss various North Korean business projects. He said that corporations are required to be left to make their own decision to make new investments. He said Chung not even thinking of visiting North Korea to thank the recent dispatch of North Korean condolence group for funeral of his father late Chung Ju-Yung, the founder and former honorary chairman of Hyundai Group. ``If Hyundai Motors involves in North Korean projects, it would greatly weaken the competitiveness of Hyundai as a company specialized in automotive business,`` he said.

Also, another Hyundai official said that the recent report of Hankyorae Newspaper that chairman Chung will shortly visit North Korea to discuss business projects there is groundless, adding that the company would even dare legal suit against the newspaper company for damages in corporate value through the false report.

He said: ``We wouldn`t accept the request of Hyundai Asan, which is involved in North Korean projects, even if the company requests participation in its capital increase. We need a cautious approach in uncertain businesses like North Korean projects since it affect Hyundai Motor`s stock price.``

A Hyundai official who is dealing with external affairs said that Hyundai Motor has maintains a strategic relations with DaimlerChrysler and other foreign companies and foreign shareholders together have over 50 percent stake in Hyundai, noting that Hyundai`s management alone cannot make a decision on matters like North Korean project as it requires massive investment.