Investors Worry That Hyundai Is Wasting Money On $10 Billion HQ

Hyundai Motor Group will pay a record $10 billion for the site of its new headquarters in Seoul's high-end Gangnam district, out-bidding Samsung Electronics Co. and sparking investor concerns that it is wasting cash on a trophy property.

The conglomerate smashed the previous record auction price for a single plot of land in South Korea with its 10.55 trillion won ($10.14 billion) bid, more than triple the appraisal value.

It would be the highest price by far for a single piece of land in Asia since the global financial crisis, according to CBRE Research, topping the $3.6 billion paid last year by Hong Kong's Sun Hung Kai Properties for a site in a commercial district in Shanghai.

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MDarringer - 9/18/2014 7:56:46 PM

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Hyundai is going gangbusters. I say what's the tempest in the teapot?

skytop - 9/18/2014 8:36:27 PM

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Is Hyundai insane? Clearly so.

MDarringer - 9/18/2014 10:21:59 PM

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The fact is that Hyundai has $10B to throw at real estate. That makes it so.

HughJass - 9/24/2014 12:48:05 PM

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Just like the Japs in the 80s, the Koreans now need penis extension trophy HQs. Let them waste there money while the stil have some. Samsung is done, Hyundai/KIA won't be far behind.

HughJass - 9/24/2014 12:48:42 PM

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I'm sure their HQ will be designed by white guys from Europe as well. Maybe it'll be a clone of the BMW or VW HQs.