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Hyundai & Kia Spin-Off from Parent Company

17 May 2000

    Seoul - Chung Mong-koo, the eldest son of the Hyundai Group founder and 
chairman, will head-up a new automotive conglomerate comprised of Hyundai 
Motor, Kia Motors, Hyundai Precision Industries and Hyundai Capital.  The 
formation of the new entity is expected to be complete by June, upon 
approval of the South Korean Fair Trade Commission.

    A company spokesman said, "We plan to create an independent auto-making 
conglomerate with aggregate assets valued at 26 trillion won (about $23 
billion) and be reborn as a professional car maker."  The spokesman added 
that the four companies will retain their present names and will not use a 
common group name, although, the official said, Hyundai Motor will launch a 
corporate identity program to give the four companies an integrated image.

    Two other Hyundai Group companies, Inchon Iron & Steel Co. and Hyundai Pipe 
Co., had been expected to join the new auto group, but were excluded.  The 
decision to exclude the two steelmaking affiliates was made because of the 
desire on the part of the new group to focus solely on auto-related 
business.  Inchon Iron and Steel will continue to be part of the parent 
Hyundai Group.