Hyundai moves to replicate legendary success in Middle East

Hyundai Motor Group aims to bolster its foothold in the Middle East and replicate the parent group's success in the region engineered by founder Chung Ju-yung five decades ago.

Hyundai Motor Group Executive Chair Euisun Chung shakes hands with a Hyundai Engineering & Construction employee during his visit to the construction site of a tunnel at The Line, a residential area of Saudi Arabia’s mega-project NEOM, on Monday. [HYUNDAI MOTOR]

Hyundai Motor Group aims to bolster its foothold in the Middle East and replicate the group's success in the region engineered by founder Chung Ju-yung five decades ago.

The Korean automaker said Tuesday that Executive Chair Euisun Chung visited the tunnel construction site at The Line, a planned residential area of Saudi Arabia’s mega-project NEOM, where Hyundai Engineering & Construction is carrying out construction.

A Hyundai Engineering & Construction (E&C)-led consortium last year won a deal to construct 12.5 kilometers (7.7 miles) of tunnels at The Line, with each company receiving 723 billion won ($545.8 million) for the project.

“With the trust built by Hyundai E&C, Hyundai Motor Group will develop the history and actively support the project with full responsibility,” Chung said to employees at the site. “Quality and safety should be the priority.”

Hyundai Motor Group founder Chung Ju-yung takes a look at the construction site of an industrial port in Jubail, eastern Saudi Arabia, which was handled by Hyundai Engineering & Construction in 1970s. [HYUNDAI MOTOR]

Hyundai Motor on Monday announced it agreed with Saudi Arabia's sovereign wealth fund Public Investment Fund to build Korea's first auto assembly plant in the Middle East region.

The partnership is part of the $15.6 billion worth of deals signed between the two countries as Korean President Yoon Suk Yeol visits Saudi Arabia for a bilateral summit with Saudi Crown Prince Mohammed bin Salman in Riyadh.

Hyundai Motor and Kia have a combined 21 percent share in Saudi Arabia, the country with the largest auto market in the Middle East, second only to Toyota.

Hyundai Motor Group founder Chung Ju-yung takes a look at the construction site of an industrial port in Jubail, eastern Saudi Arabia, which was handled by Hyundai Engineering & Construction in 1970s. [HYUNDAI MOTOR]

Hyundai E&C and Hyundai Engineering also sealed a $2.4 billion deal with Saudi Aramco, Saudi Arabia's state-run oil giant, to construct a gas processing plant in the Jafurah gas field.

The Middle East holds historical significance for Hyundai as founder Chung inked massive deals in the region in the 1970s, which contributed mightily to Korea's economic development.

Hyundai E&C in 1975 constructed an industrial port in Jubail, eastern Saudi Arabia, the biggest port in the world at the time.

The company currently handles 23 construction projects in the Middle East, totaling around 26.3 trillion won.

“The Middle East, including Saudi Arabia, is a symbolic region for Hyundai where founder Chung created a legend,” Hyundai said in a statement. “Hyundai Motor Group will endeavor to discover new opportunities in the market by diversifying our business portfolio.”

Hyundai Motor Group Executive Chair Euisun Chung tours a Hyundai Engineering & Construction tunnel construction site at The Line, a residential area of Saudi Arabia’s mega-project Neom City, on Monday. [HYUNDAI MOTOR]

BY SARAH CHEA [chea.sarah@joongang.co.kr]