[Conference Call] Hyundai Motor: "9 Billion Won U.S. Tariff Burden in Q2"

Hyundai Motor has announced that it incurred an additional cost of approximately 900 billion won in the second quarter due to U.S. tariff policies. However, the company expects the impact of tariffs to ease in the second half of the year compared to the previous year.

During its second-quarter earnings conference call on July 23, Hyundai Motor stated, "The tariff payment in the second quarter was about 900 billion won, similar to the first quarter," and added, "We expect the impact of tariffs to decrease in the second half of the year compared to last year."

According to the company, its U.S. tariff burden was about 900 billion won in both the first and second quarters of this year. In contrast, last year Hyundai Motor paid approximately 1.8 trillion won in tariffs in the third quarter and 1.5 trillion won in the fourth quarter. As a result, the company anticipates that, due to the base effect, the tariff burden will be relatively lower in the second half of this year.

Despite the tariff burden, Hyundai Motor maintains its annual profitability targets. The company expects that the normalization of production and the launch of new vehicles in the second half will largely offset the impact of tariffs.

Seungjo Lee, Executive Vice President and CFO of Hyundai Motor, stated, "Our operating margin was 5.5% in the first quarter and 5.8% in the second quarter. We saw a turnaround in the first quarter compared to the fourth quarter of last year, and we continued this growth trend in the second quarter," adding, "We will continue to pursue growth in the second half of the year so that we can achieve a top-tier operating margin in the automotive industry."

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