Hyundai Motor Group, the world’s fifth-largest auto giant, will complete its controversial property purchase this week by making the final payment for the site where it plans to build its new headquarters, industry sources said Tuesday.
In September last year, the parent group of Hyundai Motor Co. and Kia Motors Corp. purchased the 79,345-square-meter plot that previously housed the headquarters of state-run Korea Electric Power Corp. in Seoul’s wealthy Gangnam district for around 10.55 trillion won ($8.96 billion).
The group beat out archrival Samsung by proposing a price seen way higher than market expectations, drawing criticism from investors for spending too much on the land.
Hyundai Motor Group paid 1.55 trillion won right after winning the bid for the land last year and paid 30 percent of the total price in January and again in May. The final pay installment is scheduled to be completed on Friday as promised, according to the sources.
A group official said that there is “no problem with the payment plan and other necessary procedures for taking over the property.”
Hyundai Motor Group earlier said that it plans to construct a 115-story building that will house the offices of its main affiliates, a convention center, a concert hall, lodging and other facilities.
The group expects that the so-called Global Business Center would have 262.6 trillion won worth of production inducement impact and help generate 1.3 million jobs in the process. It is expected to break ground on the construction either later next year or early in 2017. (Yonhap)
