This article was published on Aug. 27, 2025, at 2:45 p.m. on the ChosunBiz MoneyMove site.
As the ruling party pushes for laws tightening regulations on corporations, HD Hyundai is gaining attention by attracting large investments in consideration of a dual listing for its robot subsidiary, HD Hyundai Robotics. It is taking a different path compared to other major corporations that are repurchasing equity from financial investors (FIs) while opting out of dual listings.
According to investment banking (IB) industry sources on the 27th, HD Hyundai's subsidiary HD Hyundai Robotics is set to raise 200 billion won next month by issuing redeemable convertible preferred stocks (RCPS). Domestic private equity fund (PEF) operator KY PE and the Industrial Bank of Korea have decided to invest. HD Hyundai Robotics is reported to have wanted to be valued at a minimum of 6 trillion won.
In the process of securing investment funds, HD Hyundai Robotics promised to list on the stock market after a certain period. Although HD Hyundai committed to buy back equity from FIs if it does not list within the specified period, there are no set conditions for the minimum corporate value needed for the listing, leading to evaluations that future listings will be easier.
The issue is that HD Hyundai, the parent company of HD Hyundai Robotics, is already a listed company, thus exposing it to the risk of a dual listing. Evaluations have emerged that this is a somewhat bold move as two amendments to the Commercial Code, primarily led by the ruling party, have passed and a third amendment is being pushed forward. Although the passed amendments do not explicitly prohibit dual listings, the voices advocating for the protection of minority shareholder rights are growing louder.
HD Hyundai has stated, "It is not necessarily required to go public," but from the perspective of FIs, the recovery of investment through listing maximizes revenue, making it highly likely that they will push for a public offering. If the parent company, HD Hyundai, repurchases the equity, it would only guarantee minimum revenue, serving merely as a backup plan.
HD Hyundai Group is sensing the atmosphere around the risk of dual listings. In 2021, HD Hyundai XiteSolution raised 400 billion won to acquire HD Hyundai Infracore and promised to go public, but later abandoned the listing and repurchased the equity.
For this reason, speculations have arisen that HD Hyundai believes the current trend will soften somewhat when the time for recovering investment funds arrives. A private equity fund insider noted, "In the current government climate, there is no benefit in pre-IPO transactions, so everyone is hesitant," adding that, "If investment is executed now, the recovery of investment funds will be in 3 to 5 years, so I think they expect the atmosphere to change somewhat by then, which led to this judgment."
HD Hyundai Group currently holds eight listed subsidiaries. HD Hyundai is a holding company that manages a total of 93 companies, including both listed and unlisted subsidiaries. While it operates businesses in shipbuilding, refining, and construction machinery, it has also ventured into the industrial robot market through HD Hyundai Robotics. HD Hyundai Robotics recorded sales of 214.9 billion won and an operating profit of 26.8 billion won last year.