Hyundai Department Store Group is wrapping up the group-wide restructuring
launched in mid-2000s. Regarding the department store business, the future
growth plan is already shaping up to include seven store openings (or 11 if
including the affiliated stores) for the next five years. In contrast, the group has not
yet provided a clear vision for the non-department store affiliates, which have
abundant cash reserves (W140bn for Hyundai H&S, W200bn at Hyundai Home
Shopping, and W170bn, including the value of the stake in Hyundai Motor
Company, at Hyundai Food System). We see opportunities that Hyundai H&S’ food
material distribution unit and Hyundai Food System’s business will create
synergies and believe Hyundai H&S will play a pivotal role in the growth of the
non-department store business for the entire group.