South Korea’s Hyundai Steel sells its Beijing unit due to sluggish sales
Mar. 22, 2023 - South Korea’s Hyundai Steel decided to sell its Beijing unit because the sales were sluggish over the past year. According to the report from Hyundai Steel, the net loss of Hyundai’s Beijing unit was more than 100 billion won over the past five years.
The net loss was mainly due to Hyundai Motor and its sister firm Kia decreasing their market share in China. Hyundai Steel started to supply automotive steel sheets to these two companies in 2002 through its Beijing unit established in the city.
Apart from that, the Terminal High Altitude Area Defense (THAAD) system made the China-South Korean conflict, which caused some Chinese customers to boycott the South Korean brand.