SK stocks given by Chairman Tae-won Choi, most of his relatives were sold… Nephew Choi Seong-hwan bought more, why?

Input 2021.02.09 15:00

Most of the stocks were sold by relatives who were given shares of SK Corp. two years ago to SK Group chairman Choi Tae-won. SK networks (001740)It is noteworthy that only the head of the planning department (in charge of the business) is increasing its stake. In the business world, analysts say that Choi holds a stake in SK Co. with consideration of the division of SK Networks. Choi is the eldest son of Shin Shin-won, CEO of SK Networks.

According to the business world on the 9th, Choi bought 4481 shares of SK Co., Ltd. common stock and 1154 shares of SK Co., Ltd. through intra-market purchases on January 29 and February 1, respectively. The current market price is about 1.7 billion won. Mr. Choi’s stake in SK Corporation increased from 0.73% (52,977 shares) to 0.74% (52,6612 shares).

At the end of November 2018, Chairman Tae-won Choi and his younger sister Ki-won Choi, chairman of the SK Happiness Sharing Foundation, donated a total of 342,333,322 shares (4.87%) of SK Holdings to relatives. In celebration of the 20th anniversary of the chairman’s inauguration, the group explained that it is a step in returning to the relatives who have provided strength. At that time, the total number of families that received shares was 23, and according to the business report, 21 of them sold all or part of their shares.

Only Chairman Choi Tae-won’s younger brother Choi Jae-won, SK Senior Vice Chairman, maintained the donation share. Choi is the only company whose stake has increased. Choi received a 0.7% stake in 2018. Prior to the donation of shares, he did not own a share of SK Corporation.

Chief Executive Officer Choi holds the largest stake in SK Corporation among the third generation of SK owners. In the business world, analysis comes out as to whether it is a move for the division of SK networks and third generation management. Chairman Shin Shin-won is the cousin of Chairman Tae-won Choi and the second son of the late Sunkyung Group Chairman Choi Jong-gun, the founder of SK Group.

In the meantime, observations have been raised that inside and outside the group, Chairman Shin Shin-won will separate SK Networks and become independent. SK Corp. is the largest shareholder (39.12%) of SK Networks. If SK Networks and the owner’s family secure enough stakes in SK, it will be advantageous when the division is separated. From Choi’s point of view, increasing SK Corp.’s stake is meaningful in many ways.

The fact that SK Networks has succeeded in improving its constitution as a rental company is also the reason for the possibility of division of divisions. SK Networks has been reborn as a rental company by successively acquiring Tong Yang Magic (now SK Magic) in 2016 and AJ Rent-a-car (integrated with SK Rent-a-car) in 2019. Both SK Magic and SK Rent-a-Car are key divisions of SK Networks and recorded sales of KRW 1.22 trillion and KRW 1.85 trillion, respectively, last year. This is an increase of 16.7% and 5.3%, respectively, compared to the previous year.

An investment bank official said, “SK Networks is a company that has secured enough growth momentum even if it separates from SK Corp.,” and said, “If not right now, Seong-Hwan Choi’s third-generation management is likely to promote division of affiliates. “I said.