UPDATE 1-Elliott Advisors says it holds more than $1 bln of stock in Hyundai Motor Group

Motor Group@ (Add statement, background)

SEOUL, April 4 (Reuters) - Elliott Advisors (HK) Limited, an arm of the activist hedge fund, said on Wednesday that it holds more than $1 billion of shares in South Korea's Hyundai Mobis , Hyundai Motor and Kia Motors .

Elliott also said in a statement "more needs to be done to benefit the companies and stakeholders" in response to the restructuring plan announced by Hyundai Motor Group.

South Koreas auto-to-steel giant Hyundai Motor Group announced a plan last week to streamline its complex ownership structure as it responds to calls from the government and investors to reform the countrys powerful family-controlled conglomerates or chaebol.

"As a major investor, Elliott is pleased that Hyundai Motor Group has taken a first step towards an improved and more sustainable corporate structure," it said in a statement.

"While this step is encouraging, more needs to be done to benefit the companies and stakeholders," it said, calling for a detailed roadmap to improve corporate governance.

Under Hyundai's plan, parts supplier Hyundai Mobis is to spin off its domestic module and after-service parts businesses and merge them with logistics affiliate Hyundai Glovis backed by Hyundai's family members.

But some investors and analysts said Mobis could be giving away cheaply what is seen as the more profitable part of its business, hitting the company's shares.

After the merger, parent Hyundai Motor Groups Chairman Chung Mong-koo and his son Chung Eui-sun, who is vice chairman, will buy stakes in Mobis held by other affiliates Kia Motors, Glovis and Hyundai Steel.

"Elliott looks forward to engaging with management and other stakeholders directly on these issues, and to offering recommendations regarding the proposed plan," it said.

A Hyundai Motor spokesman in Seoul was not immediately available for comment outside business hours. (Reporting by Hyunjoo Jin; Editing by Adrian Croft)