South Korea’s leading construction and engineering company Hyundai Development Co. will be demerged into holding and operating entities starting May 1st after the plan was approved by shareholders on Friday.

The holding entity will be focusing on management of subsidiaries and real estate management business while the operating unit will be concentrating on raising competitiveness in construction business, according to the company.

Following the spinoff, “We will focus to enhance competitiveness of each business area including development, construction and operation, and expand business convergence in the construction and infrastructure sectors,” said Hyundai Development CEO Kim Dae-chul. The company will also develop “new services and contents in the logistics, retail and business to consumer (B2C) sectors” to stay competitive in the real estate and infrastructure sectors, he added.

At the meeting, shareholders also approved a record-high dividend payment of 70 billion won ($64.8 million), 1,000 won per common share. The company said that strong performance of last year made it possible to pay the largest-ever dividend to shareholders.

Shares of HDC Friday finished 4.02 percent down at 38,250 won from the previous session.

By Son Dong-woo and Choi Mira

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]