Hyundai Group chairwoman Hyun Jeong-eun has been striving to find new growth engines for the conglomerate amid the stalled inter-Korean business led by its tourism unit Hyundai Asan.

Following its takeover of Banyan Tree Club & Spa Seoul, a six-star luxury resort in Seoul, early this year, Hyundai Group ― in particular ― is seeking to expand its financial business, based upon its brokerage unit.

According to financial industry sources, Hyundai Securities, which acquired the debt-saddled Daeyeong Savings Bank last year, is striving to emerge as a finance holding firm via additional mergers and acquisitions.

“It is certain that Hyundai Securities is gearing up to become a leading investment bank. It could also aim to become the flagship unit of a financial group,” said an official of the Financial Supervisory Service.

He said Hyun seems active in supporting Hyundai Securities, the third-largest player in the local brokerage sector, after financial authorities unveiled policies to foster big investment banks in the local market about a year ago.

“There is a high possibility that Hyundai Group will try to take over one or two financial companies in major sectors like insurance,” he said.

An analyst raised the possibility that the group could participate in the coming bidding competition to acquire ING’s Asian-Pacific operations.

“Hyundai Motor Group (that owns Hyundai Card and Hyundai Capital) has also made inroads into the insurance industry by taking over Green Cross Life,” he said. “Hyundai Group might consider waging expansion battles with Hyundai Motor in the financial market.”

Hyundai Group spokespeople have already clarified that the conglomerate plans to diversify business models amid uncertainties over the inter-Korean business.

In a statement early this year, the group said it would step up efforts to find the new growth engines that Hyun stressed in her New Year’s speech.

But the group is set to continue its push for the development of products for tours to Mount Geumgang and Gaeseong City in North Korea, though they have been suspended due to political matters.

Hyun said last March that “both the South and North should make concessions to resume inter-Korean business.”

Concerning Banyan Tree Club & Spa Seoul, a group spokesman said, “Based on the brand power of Hyundai Group, we are preparing to use a variety of marketing tools. We especially hope for synergy with Hyundai Asan, which operated the Geumgangsan Hotel.”

The nation’s third six-star hotel opened at the foot of Seoul’s Namsan in June 2010 under a 20-year contract with Singapore-based luxury resort and hotel developer Banyan Tree Holdings.

By Kim Yon-se (kys@heraldcorp.com)