Hyundai Rotem announced on June 12 that 37 executives, including CEO Lee Yong-bae, have purchased company shares.
A company representative stated that the stock purchase aims to practice responsible management for the company's future growth and to enhance shareholder value by securing new growth engines in its core business areas of defense, rail, and plants. The representative emphasized that the executives voluntarily used personal funds for the purchase.
The total number of shares acquired was 8,683, amounting to approximately 1.6 billion won (about $1.6 million). This marks the first time in a decade that the management has collectively bought shares since 2016, when they sought to convey their commitment to stabilizing the stock price amid declining performance.
However, this recent purchase is not due to poor performance but rather a proactive step towards future growth. Hyundai Rotem has established a solid foundation for long-term growth in both its Defense Solutions and Rail Solutions divisions.
Last year, the company achieved an operating profit of 1 trillion won for the first time in its history. Following the commencement of overseas exports of the K2 tank in 2023, revenue and operating profit have grown at an average annual rate of 27.6% and 118.7%, respectively, over the past two years. As of the first quarter of this year, the company boasts a robust order backlog nearing 30 trillion won.
Hyundai Rotem's Defense Solutions division is exploring future growth opportunities in robotics and aerospace. The company plans to enhance unmanned technology for both manned and unmanned weapon systems and robots through Physical AI technology to adapt to future battlefield environments.
Additionally, as the private sector transitions into a 'New Space' era, Hyundai Rotem is focusing on securing leadership in next-generation aerospace technologies. The company is developing methane engines for reusable space launch vehicles and guided weapon products to strengthen its aerospace capabilities.
To support these initiatives, Hyundai Rotem plans to invest over 1.8 trillion won (approximately $1.8 billion) in research and development, future business ventures, and facility investments by 2028.
The company representative stated, "We will enhance shareholder value through bold and proactive management activities to respond to changes in future business."
* This article has been translated by AI.
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