Hyundai Motor chairman Chung Mong-Koo and his son have sold stakes in the group’s logistics arm for US$1.1bn, seen as the latest step by owners of South Korea’s family run conglomerates to cope with new antitrust laws.
The Wall Street Journal reported the Hyundai chairman and his son, Chung Eui-sun, sold 5.02m shares in Hyundai Glovis. The sale comes as the government is strengthening antitrust rules to unwind complex cross shareholdings at family run business groups and reduce intra group deals. New antitrust regulations, which take effect on 14 February, impose fines on chaebol family members if affiliates – in which they own more than 30% – profit from intra group transactions.
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The Chung family will remain as the largest shareholders of Hyundai Glovis although their stakes have been cut to 29.99% from 43.39%.Their reduced shareholding also lifts regulatory risks as the logistics company will be delisted from the government’s watch list for fair trade.
Analysts told the WSJ the sale was part of efforts to raise money for the junior Chung to gain control of management of the group which includes Hyundai and Kia although there have been no indications that Chung senior intends to step down soon.
