KCC’s three sons have completed traffic control… There is no’Prince’s I’

Input 2021.01.31 13:53

The’traffic control’ between the three sons of KCC’s honorary chairman Sang-young Sang-young, who died on the 30th, is already over, and it is expected that there will be no’prince’s trouble’ surrounding management rights.

According to the industry on the 31st, KCC Group’s KCC is run by the eldest chairman Chung Mong-jin, the second chairman of KCC Glass & Materials Chung Mong-ik, and KCC E&C is the youngest chairman Jeong Mong-yeol.

Emeritus Chairman Sang-young Sang-young distributed distributed donations of 77,3369 shares (7.35%) of KCC’s stocks to his three sons in 2004, and Chairman Chung Mong-jin became KCC’s largest shareholder in the process. Chairman Chung Mong-jin has since steadily bought KCC shares, raising the stake to 18.55% as of the end of the third quarter of last year.

KCC E&C Chairman Chung Mong-Yeol, the youngest, has managed KCC E&C independently since 2005. As of the end of the third quarter of last year, it is the second largest shareholder of KCC E&C, following KCC (36.03%). Honorary Chairman Sang-young Sang-young donated the entire share of KCC E&C to Chairman Chung Mong-yeol in 2016.

In January of last year, KCC Glass was separated from KCC, and in October of the same year, KCC Glass and its affiliate Korea Auto Glass merged, establishing a management system between the three brothers. With the merger between KCC Glass and Korea Auto Glass, KCC Chairman Chung Mong-jin, the largest shareholder of KCC Glass, has lowered the stake from 16.37% to 8.56%, and KCC Glass Chairman Chung Mong-ik’s stake increased from 8.80% to 19.49%, making KCC Glass’s largest shareholder. Chung Mong-ik became chairman of KCC Glass & Materials.

KCC focuses on silicon, paints and materials, while KCC Glass & Glass aims to become a comprehensive glass business centering around glass and interiors. As such, it is expected that there will be no’Prince’s Difficulties’ as the business areas of the three sons have already been divided and the governance reorganization has been completed before the birth of the honorary chairman Jeong Sang-young. It is analyzed that the deceased had established such a succession structure in advance after witnessing the so-called’Prince’s Difficulty’ that took place in 2000.

However, the issue of inheritance of the shares held by Honorary Chairman Sang-young Sang-young (KCC 5.05% as of the end of the third quarter of last year and KCC Glassware 5.41%) remains. As the sibling group’s stake in affiliates remains clear, the possibility of stock exchange between siblings is also raised. There is also an analysis that Chairman Mong-Yeol Chung, who is not the largest shareholder of KCC E&C, will become the largest shareholder of KCC E&C by using shares held by KCC (5.28%) and KCC Glass (2.76%).