By Park Si-soo
The closure of the Gaeseong Industrial Complex has dealt an additional blow to the already embattled Hyundai Group.
It will cost the group, which is struggling to keep its cash-strapped shipping affiliate afloat, more than 10 billion won ($8.31 million) a year from revenue from a hotel, a duty free shop and a gas station located in the complex.
The group's exclusive right to develop the largely untouched industrial site faces the risk of being discarded, should the shutdown become permanent. Winning the right in 2000, the group has invested nearly 40 billion won in developing the site.
North Korea expelled all South Korean citizens from the industrial complex Thursday and froze all assets of South Korean firms operating there in retaliation for Seoul's suspension of business at the complex.
Accordingly, Hyundai Asan, an affiliate specializing in inter-Korean business, brought back all its employees at the complex.
"It's very regrettable," said a Hyundai Group spokesman. "I hope the inter-Korean tension reduces as early as possible so that the complex will resume operation."
The government said that the complex will resume operating after it is confirmed that North Korea has dropped its nuclear ambitions permanently.
Meanwhile, the share price of Hyundai Merchant Marine (HMM) plunged 19.57 percent to close at 2,445 won on a dismal business outlook and negative news that cast doubts over its survival.
The company reported a massive operating loss of 253.5 billion won last year and 5.7665 trillion won in sales, down 11.5 percent year-on-year.
The company has 581.4 billion won in short-term debt and raised about 3.58 trillion won via asset sales over the past two years, but has struggled to raise funds since two local credit rating agencies ― Korea Investors Service and Korea Ratings ― downgraded it by two notches in November.
To keep the shipping firm alive, Hyundai Group has pledged to do everything it can. Its chairwoman Hyun Jeong-eun has vowed to donate her personal funds to HMM. Hyundai said that it will push ahead again with the sale of Hyundai Securities, and dispose of its stakes in port facilities and other assets.
The group is also in talks with major creditors, including the state-run Korea Development Bank, to extend HMM's maturing loans and inject fresh capital into the nation's biggest shipper, hit by sluggish cross-border trade.
The deteriorating financial condition of HMM and its larger rival, Hanjin Shipping, has stoked speculation that Seoul may orchestrate a merger, although the government and the companies deny the existence of any such plan.
The closure of the Gaeseong Industrial Complex has dealt an additional blow to the already embattled Hyundai Group.
It will cost the group, which is struggling to keep its cash-strapped shipping affiliate afloat, more than 10 billion won ($8.31 million) a year from revenue from a hotel, a duty free shop and a gas station located in the complex.
The group's exclusive right to develop the largely untouched industrial site faces the risk of being discarded, should the shutdown become permanent. Winning the right in 2000, the group has invested nearly 40 billion won in developing the site.
North Korea expelled all South Korean citizens from the industrial complex Thursday and froze all assets of South Korean firms operating there in retaliation for Seoul's suspension of business at the complex.
Accordingly, Hyundai Asan, an affiliate specializing in inter-Korean business, brought back all its employees at the complex.
.jpg/dims/resize/84/optimize)
"It's very regrettable," said a Hyundai Group spokesman. "I hope the inter-Korean tension reduces as early as possible so that the complex will resume operation."
The government said that the complex will resume operating after it is confirmed that North Korea has dropped its nuclear ambitions permanently.
Meanwhile, the share price of Hyundai Merchant Marine (HMM) plunged 19.57 percent to close at 2,445 won on a dismal business outlook and negative news that cast doubts over its survival.
The company reported a massive operating loss of 253.5 billion won last year and 5.7665 trillion won in sales, down 11.5 percent year-on-year.
The company has 581.4 billion won in short-term debt and raised about 3.58 trillion won via asset sales over the past two years, but has struggled to raise funds since two local credit rating agencies ― Korea Investors Service and Korea Ratings ― downgraded it by two notches in November.
To keep the shipping firm alive, Hyundai Group has pledged to do everything it can. Its chairwoman Hyun Jeong-eun has vowed to donate her personal funds to HMM. Hyundai said that it will push ahead again with the sale of Hyundai Securities, and dispose of its stakes in port facilities and other assets.
The group is also in talks with major creditors, including the state-run Korea Development Bank, to extend HMM's maturing loans and inject fresh capital into the nation's biggest shipper, hit by sluggish cross-border trade.
The deteriorating financial condition of HMM and its larger rival, Hanjin Shipping, has stoked speculation that Seoul may orchestrate a merger, although the government and the companies deny the existence of any such plan.
![[RAS KOREA] Preserving memories at Cheongju City Archives](https://img.koreatimes.co.kr/upload/thumbnailV2/53ecc69c116c49af9ba0005288526ab5.jpg/dims/resize/178/optimize)
![[INTERVIEW] 'No more part-time jobs': VANNER talks about life after winning 'Peak Time'](https://img.koreatimes.co.kr/upload/thumbnailV2/79128864ba1643498f9a49fc7a82f2f1.jpg/dims/resize/178/optimize)
