April 27, 2024

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[THE INVESTOR] Hyundai Heavy Industries’ plans to establish a subsidiary as the holdings company for the group is fueling speculation that Chung Mong-joon will tighten his grip on the group.

In addition to giving Chung, HHI’s honorary chairman and largest shareholder 10.15 percent shares, industry watchers speculate that the move is aimed at laying down the path for transferring power to his eldest son. His eldest son, 34-year-old Chung Ki-sun, currently holds an executive position in HHI.

According to the plans, revealed on Jan. 18 in a regulatory filing, three new subsidiaries will be spun off from the shipbuilder, and the newly formed subsidiary specializing in robotics would serve as the de facto holding firm for the group.

The spun off companies are tentatively named Hyundai Robotics, Hyundai Construction Machinery and Hyundai Electric and Energy System.

Chung will hold 10.15 percent of HHI, and the three new companies that are scheduled to be set up on April 1.

Hyundai Robotics would hold 13.37 percent of the two new companies, as well as HHI, and 91.1 percent of Hyundai Oilbank. Hyundai Robotics would also take 7.98 percent stake in Hyundai Mipo Dockyard.

Hyundai Mipo will hold 7.98 percent each in HHI, which will take 94.9 percent of Hyundai Samho Heavy Industries’ stake, and the three new subsidiaries.

By Choi He-suk (cheesuk@heraldcorp.com)