1997 Asian Financial Crisis and Hyundai Motor Corp

7129 Words Mar 14th, 2013 29 Pages
Hyundai Motor Company-Beijing Automotive
Joint Venture Case Study


Topics in Emerging Markets
Prof. Mei
April 9, 2003

Michael Cheng- mpc238@stern.nyu.edu
Richard Lee- rl392@stern.nyu.edu
Kevin Park- kgp203@stern.nyu.edu

Table of Contents:

Executive Summary: 3
Case Study: Introduction: 4 Case Background: 5
Hyundai Motor Corp Background & History: 6
South Korean Macro Study: Economic Background: 7
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Mr. Park immediately proceeded to call his good colleague, Michael Cheng, who worked for Mckinsey & Co. in China. Mr. Cheng had a vast knowledge of the automotive industry in China. He previously worked as a car salesman in China for several years and was very familiar with the country’s imports and exports of automobiles. Before valuating the project, Mr. Park felt like he still needed someone to paint a better picture of China’s demography as well as its political and economic status. Therefore, he called upon his good friend, Mr. J.P. Mei, who works for the government of China. Mr. J.P. Mei was also very familiar with foreign direct investment processes through a large number of projects dealing with global companies. Mr. Park flew all of his buddies in from China, and the group got started on building a recommendation for the Board of Hyundai Motor Company. Mr. Park felt confident and excited as he embarked on his recommendation for the manufacturing plant in China. But before they crunched any numbers, the group had a couple of major questions they had to consider: How should this project be financed? What is an appropriate cost of capital for the project? How will revenues be projected from year to year? The three colleagues stared at each other for a moment, scratched their heads, and strapped on their thinking caps....
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