Hyundai Motor sets first interim dividend after land deal

[SEOUL] Hyundai Motor said it will pay out its first interim dividend to increase shareholder returns after the company was criticized by some stockholders for overpaying for a piece of land in central Seoul last year.

Hyundai will pay 1,000 won per share, or a total of 268.7 billion won (S$316 million), as an interim dividend, the company said in a regulatory filing Thursday. The stock rose 4.2 per cent to 136,500 won as of 10.40 am in Seoul trading.

The announcement comes almost a year after the automaker and its affiliates, Kia Motors, Hyundai Mobis, won an auction for prime property in South Korea's central Gangnam district, offering triple the assessed price. Hyundai shares traded 34 per cent lower than Sept 18, when the deal was announced, as of the close of tradng yesterday.

Hyundai Motor Group has said its plans for the site include a hotel, convention center and auto theme park. It also plans to move 30 of its affiliates to the new site.

BLOOMBERG