Hyundai Motor fell the most in more than three months in Seoul trading as the won rose to an 18-month high, reducing the company’s earnings from exports.
Hyundai dropped 6.7% to close at KRW118,000 (US$106), affiliate company KIA Motors was down 7.2%, the most since July last year, to KRW25,050 (US$22.5) on the biggest trading volume since 5 January, according to Bloomberg data.
The won reached its highest level against the dollar in more than 18 months as South Korea’s central bank raised its economic growth forecast and a European Union rescue package for Greece boosted demand for higher-yielding assets.
The won rose 0.4% to 1,114.13 per dollar after reaching 1,111.38, the highest since 16 September, 2008.
“The proceeds will be mostly used to refinance existing debt at Hyundai Motor Manufacturing Czech,” said a statement from Standard & Poor’s, which has rated the bonds BBB-minus.