First Manufacturing Venture in 49 Years
Acquires 77.6% Stake for KRW 52.3 Billion
Aims for Client Expansion and Global Growth
Chung Mong-hyuck, Chairman of Hyundai Corporation. (Photo: Hyundai Corporation)
Hyundai Corporation, a general trading company, has officially declared its entry into the manufacturing sector by acquiring Sigma, a company specializing in automotive interior components.
On the 17th, Hyundai Corporation disclosed that it signed a contract to acquire a 77.6% stake in Sigma, thereby securing management rights. The total investment for the deal amounts to KRW 52.3 billion.
Established in 2007, Sigma primarily produces automotive interior lighting and interior components. It currently supplies door lights, ambient (mood) lighting, and electronic components to over 30 vehicle models from major automakers, including Hyundai Motor and Kia. Notably, Sigma is a leading pioneer that first introduced ambient lighting to the domestic automotive industry and currently holds more than 50% of the Korean market share. “Sigma’s products are still in the early stages of market adoption, currently limited to Korea and parts of Europe,” Hyundai Corporation stated. “We decided on this acquisition considering the high potential for growth and the possibility of expanding supply to both domestic and international automakers”.
Hyundai Corporation plans to target the market by combining Sigma’s technological prowess and product competitiveness with its own global network and sales infrastructure. The company also intends to actively seek opportunities to enter overseas markets alongside its clients when they expand their international production facilities. This move signifies a strategic business pivot, moving beyond a trading-centered structure to directly manufacturing and supplying products to the global market. It also aligns with the company’s strategy to diversify its business and revenue portfolio.
To overcome the inherent limitations of the general trading industry, Hyundai Corporation previously changed its name (from ‘Hyundai Jonghap Sangsa’) in 2021 and entered the solar power generation business. It currently operates 12 solar power plants (totaling 9.2MW) in South Korea and Japan. Recently, it also launched a solar waste module recycling business by establishing a joint venture (JV) with the German solar recycling firm, Flaxres. Furthermore, through this acquisition, the company will directly operate a manufacturing firm for the first time in the 49 years since its founding in 1976.
Hyundai Corporation has been breaking its own records for annual revenue and operating profit since 2022. Revenue first exceeded KRW 6 trillion in 2022 at KRW 6.127 trillion and reached KRW 6.9957 trillion in 2024. Operating profit also grew from KRW 66.8 billion in 2022 to KRW 133.5 billion in 2024. The company continues its steady performance in the first quarter of this year, recording KRW 1.8569 trillion in revenue and KRW 36.9 billion in operating profit. A representative from Hyundai Corporation said, “We are paying close attention to leading domestic and international tech companies with high potential to become world-class players in future business sectors, such as auto parts manufacturing and eco-friendly waste recycling”. They added, “We will pursue global expansion together with them through strategic alliances, including equity investments, JV establishments, and M&As”.
July 17, 2025
Seoul Economic Daily