이 기사는 2021년 08월 31일 08:01 thebell 에 표출된 기사입니다.

South Korea's leading carmaker Hyundai Motor has recognized a 83 billion won goodwill ($71 million) linked to its acquisition of 50% of a sales joint venture created with Vietnam's Thanh Cong in March of this year.

Hyundai Motor has recognized a 83 billion won premium or goodwill - the amount above the fair value paid for an acquisition – in connection with its takeover of 50% of Hyundai Thanh Cong Vietnam Auto Joint Venture Joint Stock Company (HTV) for 285 billion won in March. The remaining 50% of HTV is held by its long-time local partner Thanh Cong.

Goodwill in accounting is an unidentifiable intangible asset calculated as the difference between the purchase price and the fair value of the net identifiable assets acquired. It accounts for intangible benefits from acquisitions, such as the acquired company’s reputation, management talent and control premium.

“We are very interested in entering the ASEAN market by not only establishing a sales corporation in Vietnam but also building a production plant in Indonesia,” said an official at Hyundai Motor. “The market has great growth potential and the size of the market is not small anymore.” The company has believed the 30% goodwill will serve as a foothold for future profit creation.

In March 2017, Hyundai Motor bought a 50% stake in Hyundai Thanh Cong Manufacturing Vietnam (HTMV), a joint venture between Hyundai and Thanh Cong, from Thanh Cong. In October of the same year, the South Korean carmaker acquired 50% of Hyundai Thanh Cong Commercial Vehicle (HTCV) from Thanh Cong.

In 2019, two years after Hyundai Motor entered the Vietnamese market, it became the best-selling automaker there, edging out Toyota.

HTMV recorded an asset of 720.3 billion won and a net profit of 74.1 billion won in 2020, up 391.6% and 1268% compared to 2017. HTCV’s asset increased 424.5% and it swung to a net profit during the same period. The company expects this trend will be accelerated by strengthening sales power following the establishment of HTV.

The amount of goodwill decreased significantly from a preliminary 227.7 billion won announced at the end of the first quarter. “We had to announce preliminary figures at the end of the first quarter because we were estimating the fair value of the net identifiable assets at that time,” said the official. (Reporting by Do-woong Yang)