CEO Lee Yong-bae among 37 executives in first companywide share purchase since 2016
Move signals confidence in growth, aims to boost shareholder value
Hyundai Rotem disclosed Friday that 37 executives, including President and CEO Lee Yong-bae, had purchased 8,683 shares in the company worth approximately 1.6 billion won ($1.05 million). The company said the move reflects senior management's commitment to accountable leadership.
All executives bought the shares voluntarily using personal funds, the company said, describing the purchases as an expression of confidence in Hyundai Rotem's future growth and a step toward enhancing shareholder value.
It marks the first companywide executive share purchase in 10 years, since 2016. The company drew a clear distinction from that earlier episode: the 2016 purchases were intended to signal support for a share price that had fallen amid weak earnings, whereas this round is driven by conviction in the company's long-term growth prospects.
Hyundai Rotem has been building a foundation for medium- to long-term growth across its core businesses — defense, rail and plant operations. Last year, the company posted operating profit exceeding 1 trillion won for the first time in its history. Since K2 tank exports began in earnest in 2023, sales and operating profit have grown at average annual rates of 27.6 percent and 118.7 percent, respectively, over the past two years. As of the first quarter of this year, the order backlog stands at 30 trillion won.
The Defense Solutions division is developing robotics and aerospace as future growth engines. The division plans to advance physical AI-based manned-unmanned combined weapons systems and unmanned robot technology to keep pace with the evolving battlefield environment.
In aerospace, Hyundai Rotem is developing methane engines for reusable space launch vehicles and guided weapons to prepare for the private-sector-led "New Space" era and secure next-generation technological competitiveness. To that end, the company plans to invest more than 1.8 trillion won through 2028 in research and development, future projects and facility expansion across all business divisions.
"We will enhance shareholder value through bold and preemptive management activities designed to meet the demands of a changing business landscape," a Hyundai Rotem official said.
eyre@heraldcorp.com
