Hyundai Mobis has said it will spin off its module and after-service parts businesses and merge them with affiliate Hyundai Glovis.

The move comes as part of parent Hyundai Motor's plans to overhaul its structure in order to bolster growth and shareholder value, while also reforming its complex cross-sharing holding structures.

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The Korea Herald reported that the board members of Hyundai Mobis and logistics affiliate Hyundai Glovis have approved spinning off Hyundai Mobis' module and after-sales businesses and merging them with Hyundai Glovis.

The newspaper also said the 'spin-off merger' is subject to shareholders' approval at Hyundai Mobis and Hyundai Glovis' general meetings both scheduled on May 29. If approved, the change will go into effect in early July.

Following the change in business structure, Hyundai Motor Group will 'overhaul its complex corporate governance structure', the report said. Board members of Kia Motors, Hyundai Glovis and Hyundai Steel would 'review selling each affiliate's shares of Hyundai Mobis to Hyundai Motor Group Chairman Chung Mong-koo and Vice Chairman Chung Eui-sun'.

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Kia Motors currently owns 16.9 percent of shares of Hyundai Mobis, Hyundai Glovis 0.7 percent and Hyundai Steel 5.7 percent, the report added.

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Hyundai said the changes are 'irrelevant with hereditary succession and that Hyundai Motor Group Chairman Chung Mong-koo will retain his post as principal shareholder'.

"The group's commitment toward a more transparent and accountable governance structure will eventually benefit all stakeholders, including shareholders, employees, regulators and customers. The completion of the transactions will also effectively resolve the group's circular shareholding structure," Hyundai Motor Group said in a statement.

After the restructuring, Hyundai Mobis will focus on strengthening future mobility technologies in self-driving, connectivity and other future-forward growth engines, the company said.