Hyundai Motor shares have been strong for days after unveiling Atlas at "CES 2026" and declaring a shift to a physical artificial intelligence (AI) corporations. Since CES, Hyundai Motor has surged 34% in just a week, drawing investor attention.
In this rally, individual investors' buying stood out. From the 7th to the 14th, individuals were net buyers of Hyundai Motor shares worth 345.3 billion won, exceeding institutions' 276.8 billion won. Foreign investors were net sellers of 660.6 billion won over the same period. Considering that financial investment firms, which transaction exchange-traded funds (ETFs), are included in institutions, the rise in Hyundai Motor's share price was effectively driven by individuals' net buying.
This contrasts with Hyundai Motor's supply-demand trend in December last year, when individuals were net sellers of 625.3 billion won and institutions were net buyers of 347.1 billion won.
Amid the steep share-price rise, some investors who had hesitated to invest in Hyundai Motor are increasingly expressing regret that they "should have gotten in a little earlier." Against this backdrop, brokerages are advising that there is a need to focus on preferred shares, which have risen relatively less than common shares that have already climbed sharply.
Preferred shares often transaction at a discounted price compared to common shares in exchange for having no voting rights. dividends are paid the same as for common shares, offering the advantage of a relatively higher dividend yield. However, given that they cannot participate in management, their price momentum can be limited compared with common shares in a strong bull market, which is seen as a burden factor.
According to the Korea Exchange (KRX) on the 15th, on the 14th Hyundai Motor closed at 411,500 won, up 5,500 won (1.35%) from the previous trading day. On the same day, Hyundai Motor preferred (Hyundai Motor우) closed at 249,500 won, up 7,000 won (2.89%). Hyundai Motor 2 preferred B (Hyundai Motor2우B) was 255,000 won, and Hyundai Motor 3 preferred B (Hyundai Motor3우B) was 244,000 won.
As of the day, Hyundai Motor's preferred share price was only about 60% of the common share. This means the discount widened as preferreds failed to keep up while common shares jumped in a short period. Considering that the average was around 75% in September–October last year, 73% in November, and around 70% in December, preferreds are currently at least 10% more discounted.
The situation is not much different for Hyundai Motor2우B and Hyundai Motor3우B. The preferred-to-common price ratios, which moved at about 76% in September last year, about 74% in October, about 73% in November, and about 70% in December, fell to 61% and 59%, respectively, after CES, widening the gap.
This is a wider gap than between Samsung Electronics and Samsung Electronics preferred. As of the 14th, Samsung Electronics closed at 140,300 won and Samsung Electronics preferred at 103,900 won, putting the preferred-to-common ratio at about 74%. Although Samsung Electronics also shows a relatively wide gap compared with the usual 80%–85%, Hyundai Motor's discount is even larger.
Brokerages see the difference as stemming from the market's differing experience with share buyback and cancellation policies. Lim Eun-young, an analyst at Samsung Securities, said, "Since the Elliott episode, the market has learned that Samsung Electronics will relatively increase the proportion of preferred shares in buybacks," adding, "In contrast, while Hyundai Motor has said it would prioritize preferred shares, it has not yet materialized, leading to a wider gap."
There are also projections that the gap will narrow soon. Lim said, "The rise in Hyundai Motor common shares reflects CES expectations being priced in quickly," and analyzed, "After late January, when the fourth-quarter earnings release coincides with a more concrete three-year share cancellation plan, preferreds may catch up with the rise in common shares."
Earlier, Hyundai Motor announced a share buyback and cancellation policy to enhance shareholder value. From 2025 to 2027, it plans to gradually buy back shares totaling 4 trillion won over three years, to be used for cancellation or shareholder returns. In particular, by saying it would consider the preferred-share discount in the buyback and cancellation process, the market at the time grew optimistic about preferreds, and investor sentiment flowed in quickly.