This article was published on March 21, 2025, at 2:25 p.m. on the ChosunBiz MoneyMove website.
A recent securities report indicated that the corporate value of Boston Dynamics, a robotics subsidiary acquired by Hyundai Motor Group, reaches up to 30 trillion won. If Boston Dynamics were to go public at a corporate value of 30 trillion won, it would instantly resolve the concerns of Chairman Chung Eui-sun of Hyundai Motor Group, who holds a 21.9% equity stake in the company.
Chairman Chung effectively controls Hyundai Motor Group through a circular shareholding structure. According to the securities industry, the corporation likely to be acquired by Chairman Chung in order to resolve this structure is Hyundai Mobis. The circular shareholding structure involves Chairman Chung → Hyundai Mobis → Hyundai Motor → Kia → Hyundai Mobis, and he could change this governance structure by purchasing equity from Hyundai Mobis with cash obtained from Kia.
To secure equity in Hyundai Mobis, it is estimated that at least 5.5 trillion won will be needed, even without considering various taxes. This is why Hyundai Motor Group has been aware of the need for governance restructuring but has been unable to take action.
On the 21st, according to the investment bank (IB) industry, Hana Securities estimated in a report published earlier this month that Boston Dynamics' valuation ranges from a minimum of 3 trillion won to a maximum of 30 trillion won. This value was derived from assessments of the corporate value set during Hyundai Motor Group's participation in Boston Dynamics' capital increase, comparisons with publicly listed companies, and examples of investment attraction by private companies.
Hana Securities projected that as Boston Dynamics' equity value increases, the clock for improving Hyundai Motor Group's governance structure would also speed up. This is because Chairman Chung can liquidate his equity stakes in Boston Dynamics to fund governance restructuring. He currently holds a 21.9% equity stake in Boston Dynamics, which, assuming a corporate value of 30 trillion won, would amount to an ownership value of approximately 6.5 trillion won.
Additionally, the liquidity potential of Chairman Chung's holdings in other affiliates is likely to increase. Hyundai Glovis, in which Chairman Chung holds a 20% equity stake, has an 11% stake in Boston Dynamics, and Hyundai Motor and Kia also indirectly hold shares in Boston Dynamics through HMG Global.
Song Seon-jae, the Hana Securities Research Institute analyst who wrote the report, noted that "30 trillion won is an analysis based on the assumption that all conditions go very favorably," adding that "as Boston Dynamics grows, the equity value held by Hyundai Mobis is expected to expand as well, and the equity values of Boston Dynamics and Hyundai Glovis held by Chairman Chung will rise, leading to a faster pace of governance improvement within the group."
The minimum valuation for Boston Dynamics is estimated at 2.4 trillion won. The book value of Boston Dynamics' 10.95% equity, as recorded in Hyundai Glovis' third-quarter report last year, is approximately 264.7 billion won. This is the value converted to a 100% ownership equivalent. Considering that Hyundai Motor Group acquired Boston Dynamics for a corporate value of around 1 trillion won in 2021, even a conservative estimate suggests it has already secured an evaluation gain of about 2 trillion won.
Hyundai Mobis acquired equity in Boston Dynamics together with other group companies in 2021. At that time, the equity stake was 20.0%, but in 2022, Hyundai Motor Group established HMG Global to oversee new business investments and management in the U.S., contributing its shares in Boston Dynamics to secure a 20% equity stake in HMG Global.
HMG Global held a 50.0% stake in Boston Dynamics in 2022 and participated in the company's capital increase from 2022 to 2024, currently owning 54.75% of the equity. Therefore, Hyundai Mobis indirectly holds 10.95% of Boston Dynamics' equity through HMG Global.
Research Institute analyst Song stated that "given the rapid growth of the global humanoid robot market, Boston Dynamics' technological capabilities, and the synergy with Hyundai Motor Group, an increase in corporate value is anticipated," adding that "the expected improvements in governance as a result could also provide a catalyst for the rising equity value of Hyundai Mobis, which is currently discounted due to the circular shareholding structure."
However, there is also analysis suggesting that domestic robotics firms are overly overvalued. Analyst Song estimated that the market capitalizations of listed companies Doosan Robotics and Rainbow Robotics may have been referenced in the valuation of Boston Dynamics, with the market capitalizations of these two companies at approximately 3.7 trillion won and 5.5 trillion won, respectively.
In this regard, a senior official in the capital markets remarked, "When meeting with foreign investors, I am often asked, 'Why are Korean robotics companies valued so high?'" They added that "if Korean robotics firms are indeed overvalued, the growth story of Boston Dynamics may not resonate with investors."
An official from the IB industry commented, "Since it is a private company, its corporate value is somewhat arbitrary," noting that "it has been reported that after being acquired by Hyundai Motor, it has not been able to retain key local talent, which has undermined its corporate competitiveness." In fact, Boston Dynamics recorded a deficit of 25.4 billion won in the year following its acquisition by Hyundai Motor, and last year alone, it suffered a cumulative deficit of 31.6 billion won in just the third quarter.