Hyundai Heavy Industries Holdings, which currently owns a 91.13 percent stake in Hyundai Oilbank, also said it plans to "reconsider" the stock market listing of the refinery arm, after completing the stake sales to Saudi Aramco.
Saudi Aramco plans to value Hyundai Oilbank at 10 trillion won, or 36,000 won per share, Hyundai Heavy Industries Holdings said in a statement.
The holding company of shipbuilder Hyundai Heavy Industries will use the funds to be raised from the deal to "invest in new businesses and improve its financial health."
Saudi Aramco also works with shipbuilder Hyundai Heavy Industries and others under a joint venture to build a shipyard on Saudi Arabia's eastern coast.
Saudi Aramco is the biggest shareholder of South Korean refiner S-Oil Corp.