Hyundai feud winner pledges $17.6 billion investment

SEOUL: South Korea's Hyundai Group promised on Thursday to invest about $17.6 billion over 10 years in the construction unit it won control of this week, despite concerns about the group's financial soundness.

The group headed by Hyun Jeong-Eun was named on Tuesday as preferred bidder for Hyundai Engineering and Construction, triumphing over a rival offer from the giant Hyundai carmaking group headed by Hyun's brother-in-law.

Hyun said her group would invest some 20 trillion won in the builder by 2020. She rejected concerns that the bid for a 35 per cent stake -- reportedly worth about 5.5 trillion won -- would hurt her company's financial soundness.

"Don't worry. There have been full discussions with investors at home and abroad," she told reporters.

The Hyundai empire was split into separate units after the death of its billionaire founder Chung Ju-Yung in 2001, with Hyundai Motor and the shipbuilding operation hived off.

The construction firm came under creditor control in a debt-for-equity swap in 2001.

Hyun's rump Hyundai Group includes a shipping firm, a brokerage, a tour company that operates projects in North Korea and an elevator maker.

It has been hit by cash shortages because of some troubled projects, including a suspension of cross-border tours to North Korea and difficulties over an industrial estate jointly run with the North.