Beijing Hyundai Plant Opens With Gala

Chung Mong-koo, the chairman of the Hyundai Kia Automotive Group, attended the groundbreaking ceremony for the second plant of the Beijing Hyundai Motor Company, Hyundai Motor’s joint venture in China, yesterday.

Although he is being investigated by the prosecution on charges of creating slush funds and lobbying politicians and bureaucrats, Chung attended the ceremony in person because of the importance of the plant, which can determine Hyundai Motor’s success in China.

In the ceremony held in Shunyi District, Beijing, some 800 government officials and business leaders from Korea and China participated, including Chung, Korean Ambassador to China Kim Ha-jung, and Beijing Mayor Wang Qishan.

The second plant, which will be built on 430,000 pyeong of land with a $1 billion investment, will begin production from January 2008, with annual capacity of 300,000 units. Upon completion of the plant, the production capacity of Beijing Hyundai Motor will increase to 600,000 units.

Hyundai Motor said, “Beijing Hyundai Motor will grow to be the second largest in the Chinese auto industry by 2008.” Beijing Hyundai Motor currently ranks fourth in terms of sales in China, following Shanghai GM, Shanghai Volkswagen, and FAW-Volkswagen.

At the ceremony, Chung said, “Hyundai Motor Company will transform itself as the largest and the most supreme automaker in China through construction of the second plant of its Beijing company.”

Chung is planning to come back to Korea today. It was the fifth overseas trip for Chung this year alone.

Following his visit to the company’s India plant in early February, he went to its Alabama plant and the Los Angeles sales company. He visited the first plant of the Beijing Hyundai Motor Company in early March. Departing for the U.S. on April 2 when the investigation by the prosecution began in full swing, he returned on April 8.

Sung-Won Joo orionha@donga.com swon@donga.com