Hyundai's cash deal for land raises dividend concerns

Seoul

HYUNDAI Motor Co and its two affiliates will use cash to fund their 10.6 trillion won (S$12.7 billion) purchase for a land site in Seoul, raising concern that the companies will reduce shareholder payouts.

Hyundai Motor, Hyundai Mobis Co and Kia Motors Corp won't issue debt to fund the purchase, the Seoul-based company said on behalf of the consortium. The carmaker will build its new global headquarters at the site, which is located in the city's central Gangnam district.