Hyundai down on US policy concern

Hyundai Motor Co, South Korea's largest automaker, fell on speculation that profit next year may be eroded by declining demand for autos worldwide and President-elect Barack Obama may adopt policies to protect the US automobile industry.

Hyundai dropped as much as 8.4 percent and closed 5.7 percent lower at 51,400 won in Seoul trading, compared with the Kospi index's 1.6 percent gain. Vehicle sales in the US, Hyundai's biggest export market, have fallen for 12 straight months, as consumers shun buying cars amid rising unemployment and tighter credit.

"Concern about a global automobile recession prompted by the financial crisis is scaring investors," said Kong Jeong-ho, a Seoul-based analyst at Eugene Investment & Securities Co "It will heighten competition as automakers add incentives, hurting profit," said Kong, who rates Hyundai as "buy".