ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Non-Energy Minerals

Hyundai Steel Co.

Company Background

Hyundai Steel is the second-largest steelmaker in South Korea, after Posco. In 2014, it ranked 14th in the world, with annual crude steel production of 20.58 million tons.

The company in 2013 started its third blast furnace in Dangjin, South Chungcheong Province. This put it in position to meet growing demand from Hyundai Motor and Kia Motors for automotive steel sheet.

Established in 1953 as Korea Heavy Industry, the company was privatized as Incheon Heavy Industry in 1962. It became a subsidiary of Hyundai Motor group via dissolution of big conglomerates, known as chaebol, after the 1997 Asian currency crisis. Although the company originally relied on electric furnaces, it entered the blast furnace business in 2006. It has the capacity to produce a total of 24 million tons of crude steel a year, including 12 million tons by blast furnaces.

Hyundai Steel group's blast furnaces have allowed it to snatch market share from rival Posco by increasing sales of automotive sheet to Hyundai Motor, as well as heavy-gauge sheet for shipbuilding. In 2015, the company decided to acquire fellow group member Hyundai Hysco, which is known for cold-rolled steel and development of lightweight sheet for vehicles. The company hopes to boost sales by pooling their resources.

Posco outperforms Hyundai Steel in markets for certain high-grade products, such as grain-oriented electrical steel sheet and transformation induced plasticity, or TRIP, steel. Although Hyundai Steel is buttressed by the Hyundai Motor group, it needs to improve its development capabilities and drum up business outside the group.

Business Summary

Hyundai Steel Co. engages in the manufacture and sale of steel products. Its products include bar-shaped steel, board, and heavy machines for construction, industrial, automobile, half-finished products, and by-products. The company was founded on June 10, 1953 and is headquartered in Incheon, South Korea.

Financial Highlights

Dec 2021 KRWUSD
Revenue22,849.92B19,953.48M
Gross Profit3,568.18B3,115.88M
Operating income2,446.65B2,136.51M
Income before tax2,145.94B1,873.93M
Net income1,461.42B1,276.17M
EBITDA4,038.38B3,526.48M
Diluted EPS11,109.619.70
Dividends Per Share1,0000.87
Total Assets37,042.29B31,160.71M
Total liabilities18,781.89B15,799.70M
Total equity17,868.58B15,031.40M
Operating cash flow2,002.89B1,749.00M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 19,165.96B 20,780.38B 20,512.59B 18,023.39B 22,849.92B
Gross Profit 2,425.88B 2,064.56B 1,393.02B 1,094.10B 3,568.18B
Operating income 1,347.70B 1,026.03B 331,316.01M 69,000.65M 2,446.65B
Income before tax 1,081.28B 569,810.30M 44,083.29M -522,799.18M 2,145.94B
Net income 716,090.43M 398,674.37M 17,104.66M -430,013.44M 1,461.42B
EBITDA 2,851.96B 2,616.74B 1,879.08B 1,648.19B 4,038.38B
Diluted EPS 5,455 3,037.04 130.30 -3,271.78 11,109.61
Dividends Per Share 750 750 750 500 1,000
Total Assets 33,373.82B 33,304.91B 34,366.33B 34,845.04B 37,042.29B
Total liabilities 16,338.30B 16,281.78B 17,132.59B 18,152.00B 18,781.89B
Total equity 16,715.54B 16,696.01B 16,898.37B 16,345.44B 17,868.58B
Operating cash flow 1,719.76B 1,575.27B 628,329.18M 2,008.37B 2,002.89B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 16,953.37M 18,882.36M 17,589.49M 15,275.51M 19,953.48M
Gross Profit 2,145.82M 1,875.99M 1,194.51M 927.29M 3,115.88M
Operating income 1,192.12M 932.31M 284.10M 58.48M 2,136.51M
Income before tax 956.45M 517.76M 37.80M -443.09M 1,873.93M
Net income 633.42M 362.26M 14.66M -364.45M 1,276.17M
EBITDA 2,522.72M 2,377.73M 1,611.31M 1,396.90M 3,526.48M
Diluted EPS 4.82 2.75 0.11 -2.77 9.70
Dividends Per Share 0.66 0.68 0.64 0.42 0.87
Total Assets 31,174.46M 29,848.46M 29,717.09M 32,076.80M 31,160.71M
Total liabilities 15,261.59M 14,592.02M 14,814.81M 16,709.93M 15,799.70M
Total equity 15,613.97M 14,963.26M 14,612.28M 15,046.89M 15,031.40M
Operating cash flow 1,521.23M 1,431.39M 538.79M 1,702.17M 1,749.00M

Valuation Measures

Dec 2021
PER3.69
ROA4.06%
ROE8.54%
Operating margin10.70%
Profit margin6.39%

Key executives

  • President, Chief Executive Officer & Director: Tong-Il An
  • Managing Director & Head-Process Technology: Ju-Tae Choi
  • Managing Director, Head-Legal & Compliance Support: Cheon-Geun Jang
  • Director & Vice President: Jong-Sung Park
  • Managing Director: Jung-Han Kim

Shareholders

  • Kia Corp. (17.2%)
  • CHUNG MONG KOO (11.8%)
  • Hyundai Motor Co., Ltd. (6.8%)
  • National Pension Service of Korea (6.5%)
  • The Vanguard Group, Inc. (1.4%)
  • BlackRock Fund Advisors (1.4%)
  • Hyundai Steel Co. (1.4%)
  • Norges Bank Investment Management (0.9%)
  • Hermes Investment Management Ltd. (0.8%)
  • Dimensional Fund Advisors LP (0.8%)

Contact Details

Related Companies

  • Hyundai Steel Mexico S de RL de CV
  • Hyundai Steel Industry & Trade Brazil LLC
  • Hyundai Steel TR Automotive Steel Parts Co., Ltd.
  • Hyundai Steel Rus LLC
  • Hyundai Steel Slovakia SRO
  • Hyundai Steel Czech sro
  • Qingdao Hyundai Machinery Co., Ltd.
  • Hyundai Steel Chongqing Co., Ltd.
  • Hyundai Steel Suzhou Process Co., Ltd.
  • Hyundai Steel Jiangsu Process Co., Ltd.
  • Hyundai Steel Tianjin Co., Ltd.
  • Hyundai Steel Beijing Process Co., Ltd.
  • Hyundai IFC Co. Ltd.
  • Hyundai Steel Anantapur Pvt Ltd.
  • Hyundai Steel Investment (China) Co., Ltd.
  • Hyundai Steel Pipe India Pvt Ltd.
  • Hyundai Steel India Pvt Ltd.
  • Hyundai Steel TR Otomotiv Celik Urunleri San. ve Tic. AS
  • Hyundai Steel America, Inc.
  • Hyundai Steel 1st Asset Securitization Specialty Co., Ltd.
  • Hyundai Hysco Co. Ltd. /Cold Rolled Coil Bus/
  • Hyundai Steel USA
  • Green Air Co., Ltd.
  • SPP Youlchon Energy Co. Ltd.
  • ISC Cayman Ltd.

Competitors

  • SeAH Holdings Corporation
  • POSCO Holdings Inc.
  • Daiyang Metal Co., Ltd.
  • Dong Yang Steel Pipe Co., Ltd.
  • Dongkuk Industries Co., Ltd.
  • Hanchang Corp.
  • HISTEEL Co., Ltd.
  • Korea Petro Chemical Ind. Co., Ltd.
  • Moonbae Steel Co., Ltd.
  • POSCO Chemical Co., Ltd.
Last Updated on 4 Oct, 2022

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more