Hyundai was a multinational chaebol (conglomerate) headquartered in Seoul, South Korea. It was founded by Chung Ju-yung in 1947 as a construction firm and Chung was directly in control of the company until his death in 2001. Following the 1997 East Asian financial crisis and Chung’s death, Hyundai underwent a major restructuring and break-up, which reduced the Hyundai Group’s business to encompass only container shipping services, the manufacturing of elevators, and tourism.
The South Korean conglomerate (which includes Kia) had a remarkably difficult 2014, and it is expected to continue to struggle through 2015. The number one reason for the struggle? The strong Korean currency.
In 2014, Hyundai’s sales rose 4.8% and its sales revenue increased 2.2%, but it’s net profit fell an astounding 14%. With the Japanese Yen dropping 12% in value in 2014, the Korean Won has seen its value rise to hit a seven-year high, cutting into the company’s profits from overseas sales. Similar struggles are expected to continue this year, with the Japanese Yen and Chinese Yuan expected to continue to fall in value as both countries attempt to boost exports by cheapening its currencies.