(Yonhap) -- Mando Corp., one of South Korea's largest car parts manufacturers, said Monday that it will be splitinto two separate companies to enhance overall competitiveness and improve transparency.

The car parts arm is to become an independent corporate entity focused on production and research and development, with the investment unit to act as the holding company, it said.

The holding company, tentatively named Halla Holdings, will take change of all future investments in its affiliate.

Mando, part of the larger Halla Group -- a large family-run conglomerate -- said Halla Holdings will undergo a listing change so it can be traded starting in October.

For the automotive parts maker, it will undergo a re-evaluation by stock market authorities before it is relisted on the main bourse.

"The separation will allow Mando Corp. to focus on its core business areas," a company official said. He added that the latest move can enhance corporate transparency and ease the complicated cross-shareholding arrangement that has been cited for adversely affecting corporate governance.