Hyundai Motor chief rules out plant expansion in Korea

[THE INVESTOR] Hyundai Motor president Chung Jin-haeng on July 14 made it clear that the nation’s largest carmaker has no immediate plan to expand its production line in Korea.

“Considering the investment situation in Korea and overseas, there is no room for expansion here,” he told reporters after a business meeting. 

The Gwangju City government requested Kia Motors, Hyundai’s smaller affiliate, to elevate its production capacity at its plant in the city from the current 620,000 vehicles per year to some 1 million. The city plans to create a new industrial complex producing automotive parts for emissions-free vehicles.

Kia has expressed its reluctance to expand capacity, citing low productivity at locally operated manufacturing plants. 

In the meantime, Chung dismissed any immediate impact on the carmaker’s Chinese sales from the Korean government’s recent decision to deploy the Terminal High Altitude Area Defense or THAAD system.

By Lee Ji-yoon (jylee@heraldcorp.com)