이 기사는 2021년 12월 13일 08:06 thebell 에 표출된 기사입니다.

Kia Corp, part of South Korea’s Hyundai Motor Group, has acquired a 20% stake in Hyundai Capital, increasing the stake in the auto finance company owned by the conglomerate’s affiliates to nearly 100%.

Kia said in a regulatory filing on Thursday that it would purchase some 19.86 million shares in Hyundai Capital from the company’s financial investors, who hold the shares through two special purpose vehicles, for approximately 872.3 billion won ($738.6 million).

Once the transaction closes on December 20, Kia’s stake in the company will increase from 20.1% to 40.1%, With Hyundai Motor’s 59.68% stake, the two automakers will own nearly 100% of Hyundai Capital.

The move comes five years after the conglomerate sold 20% of its capital arm to the SPVs through total return swap contracts, shortly after acquiring the stake from GE Capital for 600 billion won in 2016.

Hyundai Capital, founded in 1996, is a captive auto finance company that mainly provides financing for customers who buy Hyundai and Kia vehicles. With unrivaled market dominance of the two automakers, Hyundai Capital maintains the number one position in the market.

Kia’s additional stake purchase is seen as part of the corporate governance overhaul of the conglomerate’s financial services business.

At the end of September, Chung Tae-young, the brother-in-law of Hyundai Motor Group chairman Chung Eui-sun, resigned as chief executive of Hyundai Capital. His wife and chairman Chung’s older sister, Chung Myung-yi, also stepped down from her role at the auto finance company in the same month.

Chung Tae-young, chief executive of Hyundai Commercial and Hyundai Card, and his wife together hold 37.5% of Hyundai Commercial, equivalent to the stake held by Hyundai Motor, the single largest shareholder in the financing firm.

Hyundai Card is 24.54% owned by Hyundai Commercial, which additionally acquired some 6.4 million shares in the card company in August to become the second largest shareholder after Hyundai Motor.

The third largest shareholder in Hyundai Card is Fubon Financial, which is considered an ally of Chung Tae-young. The Taiwanese financial services giant bought a 20% stake in Hyundai Card this summer from the card company’s financial investors. (Reporting by Jang-jun Lee)