Hyundai Motor Group stocks are struggling to recover from a broad decline, as Korea's stock market enters an overall correction phase. Shares of core affiliates such as Hyundai Motor and Hyundai Mobis, which led the market in the first half on expectations for robotics and physical artificial intelligence (AI), have fallen sharply, pushing their KOSPI market capitalization rankings lower. Group-focused exchange-traded funds (ETFs) with high weightings in these stocks also posted weak returns across the board.
According to the Korea Exchange on the 6th, Hyundai Motor (005380.KS) closed at 400,000 won, down 1.11% from the previous trading day. Compared with June 1, about two months earlier, when it traded at 750,000 won, the stock has fallen 46.6%. Its market capitalization ranking also slipped one notch over the same period, from 4th to 5th on the KOSPI. Samsung Electro-Mechanics rose to 4th place instead.
Hyundai Mobis (012330.KS) also saw a steep decline. Over the same period, its share price fell 33.2%, from 761,000 won to 508,000 won, and its market capitalization ranking dropped from 10th to 16th. Kia (000270.KS) also weakened, falling 23.7% from 169,900 won to 133,600 won.
The weakness in group stocks was directly reflected in ETF returns. TIGER Hyundai Motor Group Plus fell 31.3% over the same period, from 75,735 won to 51,960 won. SOL Auto TOP3 Plus dropped 39%, from 42,300 won to 25,800 won, and RISE Hyundai Motor Fixed Physical AI plunged 44.1%, roughly halving in value. KODEX Hyundai Motor Robotics Value Chain TOP3 Plus, which was listed on June 9, has also fallen 22.4% since listing through the 6th.
The market attributes the correction to a flood of profit-taking following the sharp gains in the first half, along with growing valuation pressure. Hyundai Motor recorded a significant share price surge after unveiling its next-generation humanoid robot Atlas at CES 2026 earlier this year, emerging as a leading physical AI stock. Recently, however, investor sentiment has weakened somewhat, as assessments emerged that the pace of business execution has fallen short of expectations compared with competitors.
Still, some analysts in the securities industry say it is premature to view the recent correction as damaging the medium- to long-term trend. DS Investment & Securities expects re-rating momentum to continue in the second half, with new vehicle launches including the Grandeur hybrid, GV90, and GV80 and G80 hybrids, and with the robotics business gradually disclosing details such as the equity structure of its production subsidiary and SoftBank-related procedures. Moon Yong-kwon, a researcher at Shinyoung Securities, said, "For Hyundai Motor, whether earnings recover can be confirmed from the fourth quarter, when the completion of wage negotiations and the new-vehicle effects of the Avante and Tucson are reflected."
For Hyundai Mobis, the assessment is that while short-term cost burdens will continue, the structural profitability improvement trend remains valid. BNK Investment & Securities forecast that although short-term cost burdens arose from a fire at its India plant and rising raw material prices, an improvement in its electronics component mix and the high profitability of its after-service business will support earnings in the second half.
