"We plan to retain Hyundai Motor and auto-related affiliates in the group," said group spokesman JS Kim. "Instead, more than three-quarters of Hyundai's companies will be spun off."

Under plans to be submitted to regulators on Thursday, Kim said Hyundai would propose spinning off 25 companies of its total of 35, including Hyundai Engineering and Construction as well as Hyundai Electronics.

It is basically the opposite of plans unveiled last month, when Hyundai Motor's board agreed to lead a spin-off of the firm, along with Kia Motors, Hyundai Capital and Hyundai Precision and Industry.

Hyundai Group officials said the latest plan came after the Fair Trade Commission opposed the earlier proposal because Hyundai founder Chung Ju-yung retained holdings in the auto-related companies too large to allow the units to be considered separate from Hyundai Group.

Hyundai Group officials said the founder's shareholdings in the 25 affiliates the group wanted to spin off was lower than 3 per cent each and therefore they expected no problem in obtaining the FTC's approval.

Analysts suggest the government might not see it that way, arguing that the group's founder, despite vowing last month to remove himself from the day-to-day operations of the nation's biggest conglomerate still appeared at the helm.

"We don't see much difference between a spin-off plan for Hyundai Motor and the reverse plan as long as honourary chairman Chung holds more than three percent in the car company," said an FTC official.

"We believe honourary chairman Chung still runs the group."

The 84-year-old Chung left for North Korea on Wednesday leading a group of top managers from the group on a fact-finding trip.

The FTC bars conglomerates from holding more than a 3 per cent stake in any outside firm.

Hyundai's founder holds a 9.1 per cent stake in Hyundai Motor. Chung last month relinquished his role as honourary chairman and said the founding family would withdraw from day-to-day management in the group.

His son Mong-hun resigned as the group's chairman but his eldest son balked at the idea, pledging to stay on as chairman of Hyundai Motor. Hyundai Motor shares ended down 1,050 won at 15,400, Kia Motors shares fell 50 won to 6,300, and Hyundai Precision and Industry fell 70 won to 5,130. (Reuters)Hyundai Engineering and Construction ended up 110 won at 4,300 while Hyundai Electronics added 300 to end at 23,600.

-- (Reuters)