Hyundai's spinoff plans to be announced

Hyundai Group founder Chung Ju-Yung is expected to pledge to give up 6.1 percent of his 9.1 percent stake in Hyundai Motor to accelerate the motor unit`s spinoff from the conglomerate.

The shares Chung will give up will be entrusted to Hyundai`s creditor banks, Hyundai sources said Aug. 1.

They said that the government and the creditor banks demanded Hyundai unveil plans to separate the motor unit from the group within this week. Hyundai will therefore announce the spinoff plan as well as its self-rescue programs around this weekend at the earliest.

Chung Mon-Hun, chairman of the Hyundai Asan Foundation, is currently staying in Japan, but will return home Aug. 5 and announce the plans after consultations with the government Aug 5 or Aug. 6, they said.

With regard to the motor unit`s spinoff plan, the highlight of the projected announcement, the Hyundai Restructuring Committee is positively considering entrusting 6.1 percent of former honorary chairman Chung Ju-Yung¡¯s 9.1 percent stake in the motor unit as collateral and submitting a notarized memorandum relinquishing his right to the stocks to creditor banks.