이 기사는 2021년 08월 02일 07:52 thebell 에 표출된 기사입니다.

Ties among the pan-Hyundai groups have weakened in recent years as Hyundai Motor continues to offload its holdings in HDC and Hyundai Heavy Industries’ affiliates since Chung Eui-sun, the third generation of the owner’s family, effectively took over leadership.

Hyundai Motor has held insignificant stakes in affiliates of the pan-Hyundai groups – which refer to the South Korean conglomerates run by late founder Chung Ju-yung’s descendants – and thus selling them is not notable in itself.

However, disposals indicate that ties among the pan-Hyundai firms have become weaker, particularly as leadership has been passed down to the third generation of Hyundai’s controlling Chung family.

Hyundai Motor started to sell its stakes in HDC Group, run by chairman Chung Mong-gyu, in October 2018, a month after Chung Eui-sun, currently chairman of Hyundai Motor Group, was promoted to executive vice chairman in September 2018. Chung Mong-gyu is a son of Chung Se-yung, one of several younger brothers of the founder.

Hyundai Motor reduced its stakes in HDC Holdings and Hyundai Development Company to zero over the three months through December 2018, about 13 years after the automaker acquired them in May 2005.

Hyundai Motor also offloaded part of its stakes in affiliates of Hyundai Heavy Industries Group. As of the end of 2016, the automaker had 2.88% of Hyundai Heavy Industries. The following year, Hyundai Robotics and Hyundai Electric & Energy Systems were spun off from Hyundai Heavy Industries. In 2018, the automaker sold its entire stake in Hyundai Electric & Energy Systems.

In June 2019, Hyundai Heavy Industries was renamed to Korea Shipbuilding & Offshore Engineering. In the first half of this year, Hyundai Motor cut its stake in the company from 2.31% to 2.03% while retaining some 2% stake in Hyundai Robotics, which changed its name to Hyundai Heavy Industries Holdings in March 2018.

In the first half of 2020, Hyundai Motor sold its entire stake in HMM, formerly Hyundai Merchant Marine. HMM is currently controlled by state lender Korea Development Bank and is expected to be up for sale soon.

A string of disposals by Hyundai Motor to reduce its holdings in the pan-Hyundai firms coincided with the leadership shift to the third generation of the owner’s family. Chung Eui-sun took over as Hyundai Motor Group chairman in October 2020, two years after his promotion to executive vice president in September 2018. Chung Ki-sun, who is a cousin of Chung Eui-sun, was also promoted to vice president of Hyundai Heavy Industries in 2018.

“I think the stake sales by Hyundai Motor are not about freeing up cash,” an industry expert said. “Rather it is correct to say that Hyundai Motor has been offloading the stakes since Chung Eui-sun effectively took over leadership in 2018.” (Reporting by Sang-hee Park)