Hyundai Motor Group Chairman Mulls Deepening Boston Dynamics IPO Dilemma

[Korea Financial Times, Kim JaeHun] The initial public offering (IPO) of Boston Dynamics, the robotics arm of Hyundai Motor Group, is moving to the forefront. Japan's SoftBank, a major shareholder, is approaching the expiration of its put option on its remaining stake — with the deadline falling next month. Adding to the urgency, Boston Dynamics has announced plans to deploy its humanoid robot 'Atlas' in full-scale production facilities starting in 2028, fueling growing interest in the company's future valuation.

However, Chung Eui-sun, Chairman of Hyundai Motor Group, faces a complex calculation. As the largest individual shareholder of Boston Dynamics, Chairman Chung could use an IPO to secure the funds needed for his succession and the dismantling of the group's circular cross-shareholding governance structure. At the same time, there are numerous obstacles to consider, including the risk of share price dilution across Hyundai Motor Group stocks — given that Boston Dynamics has been a key driver of recent gains — and the government's stance against dual listings.

'Valuation up to KRW 100 trillion' — Is a Boston Dynamics IPO Imminent?

According to industry sources on May 27, SoftBank's put option on its remaining stake in Boston Dynamics is set to expire next month. Hyundai Motor Group acquired an 80% stake in Boston Dynamics from SoftBank in June 2021, at which time the two parties entered into a put option agreement. The agreement allows SoftBank to sell its remaining shares back to Hyundai Motor Group if an IPO is not completed within a specified period.
The two parties have not disclosed the exact put option deadline, but investment banking (IB) and M&A industry circles generally estimate it to be four to five years from the date the agreement was signed. SoftBank currently holds approximately 10% of Boston Dynamics. Hyundai Motor Group now faces the need to either formalize an IPO schedule, directly acquire SoftBank's stake, or seek out new investors.

If Hyundai Motor Group does not proceed with an IPO, additional expenditure is unavoidable. In particular, since Boston Dynamics unveiled the humanoid Atlas at CES 2026 in January of this year, a re-evaluation of the company's enterprise value has been underway. Domestic and international securities firms project Boston Dynamics' enterprise value at a minimum of KRW 50 trillion and at a maximum of more than KRW 100 trillion. As a result, should Hyundai Motor Group seek to acquire the stake by means other than an IPO, it would need to commit hundreds of billions of KRW.

A Boston Dynamics listing is the key to Chairman Chung Eui-sun's stable succession and the resolution of the group's circular cross-shareholding governance structure. Hyundai Motor Group's ownership structure takes the form of a circular cross-shareholding chain: Hyundai Mobis → Hyundai Motor → Kia → Hyundai Mobis.

The currently most plausible scenario is to elevate Hyundai Mobis to the group's full holding company status, creating a governance chain of Hyundai Mobis → Hyundai Motor → Kia. If Chairman Chung can sufficiently increase his influence over Hyundai Mobis, he would be able to exercise stable control over the entire group.

To accomplish this, Chairman Chung would need to acquire the Hyundai Mobis stake held by his father, Honorary Chairman Chung Mong-koo (7.29%), as well as Kia's stake in Hyundai Mobis (16.9%), raising his own shareholding to a stable level of 25%. At present, Chairman Chung Eui-sun holds only approximately 0.32% of Hyundai Mobis. Industry estimates suggest that to resolve both the succession and circular cross-shareholding structure simultaneously, Chairman Chung would need approximately KRW 7 trillion to KRW 8 trillion based on current share prices.
Chairman Chung personally committed his own funds at the time of the Boston Dynamics acquisition, securing approximately 20% of the company. If Boston Dynamics achieves a valuation of up to KRW 100 trillion, he would stand to secure approximately KRW 20 trillion in cash.

Lim Eun-young, an analyst at Samsung Securities, stated: "Since the failed governance restructuring in 2018, Hyundai Motor Group has been communicating with the market that it intends to reform its governance structure through a direct, frontal approach." She added: "For Chairman Chung Eui-sun to use the value of Boston Dynamics to acquire 24.17% of Hyundai Mobis, Boston Dynamics' valuation would need to be at least KRW 50 trillion."

Share Price Dilution and Government Dual-Listing Ban Pose Challenges

It is reported that within Hyundai Motor Group, a task force led by Vice Chairman Jang Jae-hoon has been reviewing a Boston Dynamics listing from multiple angles. Vice Chairman Jang has previously stated that the group is "reviewing various options to enhance corporate value."

However, there are significant hurdles to clear before a Boston Dynamics listing can move forward. The foremost concern is the risk of dilution in Hyundai Motor Group share prices. Hyundai Motor's share price, for instance, had been trading in a box range of KRW 200,000 to KRW 300,000 for the past several years before surging sharply after Atlas was unveiled at CES in January of this year. The stock is currently oscillating in the range of the late KRW 600,000s to the early KRW 700,000s — more than double its pre-Atlas level.

This reflects the market's re-rating of Hyundai Motor as no longer merely a traditional automaker, but as a future robotics company deserving of a higher valuation. However, this re-rated valuation largely reflects the pre-pricing of Boston Dynamics' future performance. It is precisely this dynamic that gives rise to concerns over Hyundai Motor share price dilution, should Boston Dynamics be separately listed and become independent.

This concern also intersects with the government's stance against subsidiary dual listings. The Financial Services Commission (FSC) recently declared that it would strengthen its listing review framework to an "in-principle prohibition with exceptional allowances" system in order to protect the rights of general shareholders of parent companies from infringement arising from dual listings.

Following this announcement, the securities industry has forecast that a Boston Dynamics listing will face considerable difficulties. Furthermore, with reports that the government is considering requiring parent company boards to bear a fiduciary duty to shareholders in the event of a subsidiary dual listing — an move interpreted as an intent to block even overseas back-door listings — the prospect of a Boston Dynamics Nasdaq listing has also become uncertain.

Song Ho-sung, President and CEO of Kia, drew a clear line on the matter at investor relations events recently held in Singapore and Hong Kong. On the subject of a Boston Dynamics Nasdaq listing, he stated: "Internally, we have not yet decided on the timing of an IPO or whether to pursue external fundraising," adding that "it is somewhat premature to speak to specifics."



Kim JaeHun (rlqm93@fntimes.com)