Analysis of the Impact of Record-High South Korean Auto Exports on Hyundai Motor and Kia Valuations

Based on the above data collection and analysis, I now present to you a complete valuation impact analysis report.

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In 2025, South Korea’s auto exports reached

, a record high, representing a 1.7% increase from 2024 and surpassing the $70 billion mark for the third consecutive year [1]. This achievement fully demonstrates the core competitiveness of the South Korean auto industry in the global market. As the leader of the South Korean auto industry, Hyundai Motor Group sold globally in 2025, with Hyundai Motor selling 4.1382 million units and Kia selling 3.1358 million units [1].

In terms of export structure, exports of eco-friendly vehicles (hybrid + electric vehicles) performed particularly strongly. In 2024, exports of eco-friendly vehicles rose 3% year-over-year to 707,900 units, a record high; among them, hybrid vehicle exports surged 44.6% year-over-year to 397,200 units, accounting for 56.1% of total eco-friendly vehicle exports [4]. SUV models contributed the main growth, accounting for 69.1% of total exports, and high-margin models such as the Tucson, Sportage, and Kona remained popular.

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Metric	Value	Industry Comparison
Stock Price	KRW 419,000	Near 52-week high
Market Capitalization	KRW 87.41 trillion	3rd largest automaker globally
Price-to-Earnings (P/E) Ratio	9.93x	Below industry average
Price-to-Book (P/B) Ratio	0.87x	Trading at a discount
Price-to-Sales (P/S) Ratio	0.47x	Low
Dividend Yield	3.69%	Attractive
Beta Coefficient	0.94	Highly correlated with the market

Hyundai Motor’s stock performance in 2025 was extremely strong [0][2]:

Time Period	Return
Past 1 month	+42.76%
Past 3 months	+87.47%
Past 6 months	+98.58%
Past 1 year	+90.02%
Past 3 years	+151.65%

The stock price is currently near its 52-week high (resistance level at KRW 425,000), and technically it is in a

, but has entered the overbought zone [0].

Financial Metric	Value	Assessment
Return on Equity (ROE)	9.66%	Moderate level
Net Profit Margin	5.90%	Stable
Operating Profit Margin	6.77%	Moderate within the industry
Current Ratio	1.38	Healthy
Debt Risk Rating	High Risk	Requires attention

Financial analysis shows that Hyundai Motor has negative free cash flow (KRW -16.03 trillion) and a

, reflecting significant capital expenditure pressure during the company’s electrification transformation [0].

• Record-high South Korean auto exports directly support the company’s revenue growth; 2025 Q3 revenue reached KRW 46.72 trillion, exceeding market expectations [0]
• Eco-friendly vehicle exports are growing rapidly, with hybrid vehicle exports surging 44.6% year-over-year [4]
• The proportion of high-margin SUV models has increased, which is expected to improve overall profit margins
• Analyst target price is KRW 360,606, leaving some upside potential from the current stock price [3]

• Excessive short-term stock price gains (42% increase in 1 month), technical indicators show overbought conditions (RSI 79.45) [0][3]
• High debt risk, free cash flow under pressure
• Uncertainty over U.S. tariff policies may affect export profits
• Q3 EPS missed expectations (-7.52% surprise), with significant earnings volatility [0]

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Metric	Value	Industry Comparison
Stock Price	KRW 152,250	Hit 52-week high
Market Capitalization	KRW 59.60 trillion	Top 10 globally
Price-to-Earnings (P/E) Ratio	7.56x	Lowest among the two
Price-to-Book (P/B) Ratio	1.01x	Near book value
Price-to-Sales (P/S) Ratio	0.53x	Reasonable
Dividend Yield	4.88%	Highly attractive
Beta Coefficient	0.72	Low volatility

Kia Motors also showed a strong upward momentum [0][2]:

Time Period	Return
Past 1 month	+22.78%
Past 3 months	+46.68%
Past 6 months	+52.25%
Past 1 year	+47.39%
Past 3 years	+135.68%

Kia’s stock performance is slightly weaker than Hyundai’s, but it is more stable, and today’s gain is more significant (+6.47%) [0].

Financial Metric	Value	Assessment
Return on Equity (ROE)	13.76%	Significantly higher than Hyundai
Net Profit Margin	6.92%	Better than Hyundai
Operating Profit Margin	8.79%	Industry-leading
Current Ratio	1.50	Healthier
Debt Risk Rating	Low Risk	Financially stable
Free Cash Flow	+KRW 7.88 trillion	Strong cash generation capability

• Kia’s profitability is significantly stronger than Hyundai’s, with ROE of 13.76% and operating profit margin of 8.79% [0]
• Debt risk rating is
  low risk
  , with a healthier financial position [0]
• Positive free cash flow (+KRW 7.88 trillion), with a strong cash flow position
• High dividend yield of 4.88%, highly attractive to investors [3]
• Goldman Sachs reaffirmed a Buy rating, with a target price of KRW 140,000 [3]

• Q3 EPS missed expectations (-19.06% surprise), earnings volatility deserves attention [0]
• Slowdown in electric vehicle demand may affect medium-to-long-term growth
• 2025 sales target was slightly missed, but 2026 growth target is 3.2% [1]

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Comparison Dimension	Hyundai Motor	Kia Motors	Conclusion
P/E Valuation	9.93x	7.56x	Kia is cheaper
P/B Valuation	0.87x	1.01x	Hyundai is more discounted
Dividend Yield	3.69%	4.88%	Kia is higher
ROE	9.66%	13.76%	Kia is better
Profitability	Moderate	Stronger	Kia is better
Financial Risk	Higher	Lower	Kia is better
Stock Price Momentum	Extremely strong	Strong	Hyundai is stronger
Valuation Elasticity	High	Reasonable	Each has its advantages

1. Export growth verifies industrial competitiveness
   : South Korean auto exports have exceeded $70 billion for three consecutive years, demonstrating the brand and product competitiveness of Hyundai and Kia in the global market [1]. This provides solid performance support for valuations.
2. Product structure optimization
   : The proportion of SUVs and eco-friendly vehicles has increased, especially hybrid vehicle exports which surged 44.6% [4], helping to improve overall per-vehicle profit margins and product mix.
3. Stable position as the world’s 3rd largest automaker
   : Global sales of 7.2739 million units solidify its position as the 3rd largest automaker globally; economies of scale help reduce costs and enhance the basis for valuation premiums.
4. Clear growth expectations
   : Hyundai Motor has a 2026 sales target of 4.15 million units, while Kia has a target of 3.35 million units; both companies have formulated positive growth plans [1].

1. Excessive short-term gains
   : The stock prices of the two companies have risen 87% and 47% respectively in 3 months, and technical indicators show overbought conditions, posing a risk of short-term correction [0].
2. Uncertainty over U.S. tariff policies
   : This is the biggest external risk facing South Korean auto exports, which may affect future export volumes and profit margins [4].
3. Electrification transformation pressure
   : Although hybrid vehicles have performed well, demand for pure electric vehicles has slowed, which may affect the progress of electrification strategies in the short term.
4. Earnings volatility
   : Both companies’ Q3 EPS missed market expectations, indicating that earnings stability needs to be improved [0].

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• Current Valuation Level
  : P/E 9.93x, P/B 0.87x, stock price near 52-week high
• Valuation Rationality
  : Considering the company’s high growth potential and the positive impact of South Korean auto exports, the valuation has some support, but excessive short-term gains may have priced in future expectations
• Risk Warning
  : High debt risk, negative free cash flow, technically overbought

• Current Valuation Level
  : P/E 7.56x (the lowest among the two), P/B 1.01x, dividend yield 4.88%
• Valuation Rationality
  : Compared to Hyundai, Kia’s valuation is more attractive, with healthier finances and stronger profitability
• Risk Warning
  : The proportion of electric vehicle business is relatively low; attention should be paid to product structure transformation

South Korean auto exports have exceeded $70 billion for three consecutive years, forming

for the valuations of Hyundai Motor and Kia: on one hand, export growth directly increases the companies’ revenue and profits; on the other hand, their position as the world’s 3rd largest automaker provides a basis for valuation premiums.

From a valuation comparison perspective,

. Its P/E ratio is only 7.56x, significantly lower than Hyundai’s 9.93x; ROE is 13.76%, significantly better than Hyundai’s 9.66%; debt risk rating is compared to Hyundai’s ; and its dividend yield of 4.88% is also higher than Hyundai’s 3.69%.

However, the short-term gains of both companies’ stock prices are excessive, and technical indicators show overbought conditions; investors need to be aware of the risk of short-term corrections. In the long term, with the optimization of South Korea’s auto export structure (increasing proportion of eco-friendly vehicles) and steady growth in global demand, the valuation centers of both companies are expected to rise further.

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[1] Ifeng Auto - [Korean Auto Trends 1705] Hyundai and Kia sold 7.2739 million units globally in 2025! Secure 3rd place globally (https://auto.ifeng.com/c/8pfoArDte7G)

[2] Jinling API Market Data - Real-time quotes and company profiles of Hyundai Motor and Kia Motors

[3] Investing.com - Valuation analysis of Hyundai Motor and Kia Motors (https://cn.investing.com/equities/hyundai-motor, https://cn.investing.com/equities/kia-motors)

[4] News18a Auto - South Korean auto exports fall for the first time in five years: U.S. tariffs are the biggest variable (https://www.news18a.com/news/storys_214116.html)