Go Sang-young, KCC Honorary Chairman, announced… Chairman Hyun Jeong-eun does not attend

The inauguration ceremony of the late KCC Honorary Chairman Sang-young Sang-young was held at the funeral hall of Asan Hospital in Pungnap-dong, Seoul at 8 am on the 3rd. His wife, Eun-joo Cho, his immediate family, his nephew, Chung Mong-joon, chairman of the Asan Foundation, Chung Mong-gyu, chairman of HDC Group, and Eui-sun Eui-sun, chairman of Hyundai Motor Group, attended the launch. The car carrying the deceased went around the KCC office building in Seocho-dong, Seoul and headed for Seonsan, Yongin, Gyeonggi-do.

During the funeral of Honorary Chairman Chung, Hyundai Group Chairman Hyun Jeong-eun, who was his nephew’s daughter-in-law, did not stand out, and the current chairman did not attend. An official of KCC said, “Until the night of the 2nd, there was no chairman Jung-hyun in the guestbook with few contemptuous people.” A representative of the Hyundai Group also said, “I will inform the secretaries about attending housework even after the death, but I do not know that this is not the case.”

Emeritus Chairman Chung and the current Chairman suffered a conflict called the ‘Sister-in-law (father-in-law’s younger brother)’ conflict over the management rights of Hyundai Group when Chairman Mong-Heon Chung died during a special remittance to North Korea in August 2003. The current chairman pushed for the inauguration of the chairman after the death of her husband, but the heart of the case is that the honorary chairman Chung objected. Honorary Chairman Chung bought a stake in Hyundai Elevator, the holding company of Hyundai Group, by recruiting external funds. And in November of that year, it announced that it would take over the Hyundai Group. The current chairman’s side also tried to prevent Honorary Chairman Chung from expanding its stake through a capital increase.

At the end of 2003, the battle for management rights intensified. Honorary Chairman Chung said, “The management rights of Hyundai Group belong to the Jeong family, and there is no such thing as Kim Moon-hee (the mother of Chairman Hyun Jeong-eun) exercising management rights over Hyundai Group.” Mrs. Moonhee Kim was the largest shareholder of Hyundai Elevator at the time. Since then, various legal disputes arose between the two sides, and in the end, the current chairman side won the Hyundai Elevator shareholders’ meeting in March 2004.

There was a management conflict between the current chairman and his in-laws afterwards. In 2006, Hyundai Heavy Industries Group, Chairman Chung Mong-jun of Asan Foundation, purchased a stake in Hyundai Merchant Marine (now HMM, then Hyundai Group). At this time, the current chairman side criticized, “Even though it is necessary to secure preemptive funds due to the downturn in the shipping economy, we are not able to give up our regret about management rights and are holding back from normal management activities.”

There was also a dispute over Hyundai E&C. Hyundai Group tried to buy back Hyundai E&C, which had been managed by creditors after bankruptcy in 2000, in 2010, but at this time, it ran into the side of honorary chairman Chung Mong-koo of Hyundai Motor Group. At the time, Hyundai Group was selected as the preferred negotiator for the acquisition of Hyundai E&C, but afterwards, Hyundai Motor Company filed a lawsuit with procedural issues. After the court’s judgment, Hyundai E&C is now an affiliate of Hyundai Motor Company.

Meanwhile, the KCC Group, which is a group holding company, is managed by the eldest son Chung Mong-jin (61), the second chairman of KCC Glass & Materials Chung Mong-ik (59), and KCC E&C by the third Chairman Chung Mong-yeol (57). Chairman Chung Mong-jin’s stake in KCC is 18.6%, which is more than the total (13.8%) of Chairman Mong-ik and Mong-yeol. Honorary Chairman Sang-young Sang-young left about 5% of KCC’s stake.

Reporter Sunwook Choi [email protected]