KCC Officially Announces Taking Over Hyundai Group

Chung Sang-young, honorary president of Keumkang Korea Chemical Co., Ltd. (KCC), officially stated their plan of “taking over Hyundai Group.”

KCC vice president, Chung Jong-soon, at yesterday’s press conference, said that Hyundai Group, including Hyundai Elevator Co., is virtually incorporated into KCC Group’s affiliated company, and honorary president Chung and KCC will be in control of the management of Hyundai Group in the future.

Vice President Chung said, “If the inter-Korean business that the Hyundai Group has been performing in does not show profits, we may reconsider it,” presuming that Hyundai Asan’s inter-Korean business may take quite a hit.

Vice President Chung added, “The 12.8 percent of Hyundai Elevator Co. stock bought through the Shinhan BNP’s private equity fund was privately purchased by honorary president Chung.”

KCC and its affiliated company, Korea Silica Co., had additionally purchased 7.8 percent of the company from mutual funds, and honorary chairman Chung and KCC affiliated company’s shares totaled to 31.2 percent, exceeding Hyundai Elevator Co. chairwoman Hyun Jeong-Eun’s share (19.4 percent). KCC claims, “The 13.1 percent share that Hyundai Welding Co., Ltd and seven other Hyundai family’s companies bought, combined with the other shares from close relations of the Hyundai family, will exceed 50 percent.”

The Financial Supervisory Service said, “The 20.7 percent share that honorary president Chung had bought through three of Shinhan BNP’s private equity funds and the mutual fund has been judged to violate the ‘duty to notice 5 percent of the share,’ and there will be a restricted six months of its voting right.”

KCC has also additionally bought 3.95 percent of Hyundai Merchant Marine Co. since October and has raised its total share to 6.93 percent, following as the second largest stockholder after Hyundai Elevator Co. (15.2 percent).

Meanwhile, even though KCC has over 30 percent of the share and matched the conditions to incorporate as an affiliated company, KCC bought the shares nominally as funds, and so the Fair Trade Commission plans to incorporate Hyundai Group into KCC Group at the point when personnel management of the affiliated company is actually in control.