Just how much money do you think Hyundai would pay for the land on which to build their new headquarters building in Seoul, Korea - land owned by an agency of the South Korean government?
Which number below do you think is closest to what they agreed to pay, just for the land itself mind you, without going over the actual number -
|$18,851 per square foot - a waste of money?|
Whatever your guess, you aren't even close. It was so much that when it was announced, Hyundai's stock took a nose dive because they paid three times what the land was said to be worth.
"...nonsense. I was stunned," said the fund manager for an investment company that owned stock in the company, according to Automotive News and reports from ABC News. He was no happier about it than many other stockholders, some of whom probably had no clue how much cash the company was sitting on (maybe more) in its cash reserves.
Would you believe $10 billion? Yup. And their plans for the property will reportedly cost another $6 billion to develop and construct. The size of the land is only 854,030 square feet. Our desk calculator won't go beyond one billion but if our hand written calculations are right, that comes out to $18,851 per square foot of land. Look down at your feet. They take up a little less than one square foot. Are you wearing $18,851 shoes? Apparently Hyundai is.
One commenter at Automotive News joked that Hyundai paid "Triple appraised value for a government owned property. The same government that granted the CEO freedom from prison. No, I see no connection," referring to the conviction of CEO Chung Mong-koo on embezzlement and corruption charges involving a $106 million corporate slush fund. On Korea’s 63rd Independence Day, the ministry of Justice granted a special pardon to eliminate all charges and sentences.
Hyundai sells several dozen model vehicles with prices ranging from $16,000 to $64,000 but you have to sell a lot of cars to plunk down that much just to buy some land to build a glitzy headquarters building.
Got a Hyundai lemon? Got a Kia lemon? And they won't or can't fix it? Give us a call. Getting rid of lemons is what we do. Everyday.
Burdge Law Office
Helping Consumer Get Rid of Lemon Cars, Everyday.