S Korea Hyundai Motor, Kia Motor Merge Research Centers

SEOUL May 25, 2003; Dow Jones reported that South Korea's Hyundai Motor Co. and its affiliate Kia Motors Corp. have merged their research centers in an effort to reduce development costs, Hyundai Motor said Monday.

Hyundai and Kia have moved their research centers in other parts of South Korea to Kyunggi province, near Seoul, where Hyundai operates another research center, Hyundai said in a statement.

The merger will allow Hyundai and Kia to cut costs and shorten product development time, it said.

Hyundai plans to invest 1.3 trillion won ($1=KRW1,191.3) in research and development this year, and budget 5% of annual sales for R&D in the future. Kia has allocated KRW850 billion for R&D in 2003.