The equity of Hyundai-Kia 50%...The board of directors acquired majority
Hyundai-Kia Motors announced on the 24th to acquire management rights from Jiangsu Hyundai-Kia Motors/Yueda Co. Ltd. which is a local joint business with China.
Hyundai-Kia Motors signed 'the Rights Transferring Mutual Agreement(資産轉讓協議書)' by each representative after consulting on the acquisition of equity of Jiangsu Yueda Group with a group of Chinese chairmen such as the CEO of Jiangsu Yueda Corporation, Hu, You Lin and Liu, Bi Mao President.
As Hyundai Motor Company acquired 20% of Jiangsu Yueda Group equity of 70%, the equity ratio between Hyundai-Kia and Jiangsu Yueda of China became equal.
Accordingly, in the formation of board of directors of the joint business, Koreans accounted for majority (3 out of 5). The main positions including the top positions were filled with executives of Hyundai-Kia. This enables management rights to be exercised by Hyundai-Kia.
In fairness to the companies new business partner, Hyundai-Kia held a signing ceremony in the Chinese Peoples Congress(中國人民黨) on January 26 where it was agreed to endeavor to establish a factory with an annual capacity of 300,000 vehicles with the Jiangsu Corporation Group, which is a local joint-business partner of Hyundai-Kia.