Both companies submit application for change of the same person… FTC announced in May
It is reported that the Hyundai Motor Group submitted an application to the Fair Trade Commission requesting that the total number of companies be changed from honorary chairman Chung Mong-koo to chairman Eui-sun Eui-sun.
Hyosung Group also requested that the total number be changed from Honorary Chairman Cho Seok-rae to Chairman Cho Hyun-joon.
According to the business community on the 1st, Hyundai Motor Group and Hyosung Group recently submitted an application for change of the same person (total number) to the FTC.
Each year, the FTC designates and announces a group of companies subject to disclosure of 5 trillion won or more and a group of companies that limit mutual investment of 10 trillion won or more each year. The FTC designates the same person at this time.
The same person is the actual governor of the enterprise and has all responsibilities related to the collective designation data. Depending on who the FTC designates as the same person, the company subject to the sanctions for specially related persons and the total number of private interests may change.
The FTC’s criteria for designating the same are the actual exercise of control. The FTC designates the same person if the ownership interest has at least a large impact on management activities.
In the business world, Hyundai Motor Company’s application for the change of the same person is viewed as a scheduled procedure as Chairman Eui-sun Eui-seon holds the overall management rights of the group with the inauguration of Chairman Eui-sun Eui-sun last October.
If Chairman Eui-sun Eui-sun is designated as the same person this time, the total number of Hyundai Motors will change in 21 years. Hyundai Motor Company was separated from the Hyundai Group in September 2000 and was designated as the first conglomerate group in 2001. Since then, the president has been honorary chairman Chung Mong-koo.
The Hyundai Motor Group is expected to open the’Era of Justice Line’ with this application for the change of the same person designation.
It is known that Hyosung Group submitted an application for change of the same person, and presented the health of Honorary Chairman Cho as the reason for the change of the same person.
The documents submitted by Hyosung Group to the FTC were reported to contain documents stating that honorary Chairman Cho’s hospital medical certificate and part of Honorary Chairman Cho’s stock voting rights (9.43%) were delegated to Chairman Cho Hyun-joon along with the application for change of the same person.
As of the end of September of last year, Hyosung Group’s eldest son, Cho Hyun-joon, owns 21.94% of the holding company, and the third son, Cho Hyun-sang, has 21.42%.
The health status of Honorary Chairman Cho is a factor in determining whether the FTC will change the designation of the same person, and is a matter that can affect the execution of the sentence of Honorary Chairman Cho in the future.
Honorary Chairman Cho was sentenced to three years in prison at the second trial on charges of evading taxes worth 130 billion won, but was not arrested in court due to his health status. In December of last year, the Supreme Court returned the case to the Seoul High Court after judging some of the charges of evading corporate tax as innocent and guilty of illegal dividends.
The Criminal Procedure Act allows a prisoner to suspend execution when there is a concern that he or she cannot preserve his or her health due to execution of a sentence.
In this situation, it is known that the FTC internally disagrees on whether to accept the Hyosung Group’s request for change of the same person.
Meanwhile, the Fair Trade Commission is scheduled to announce the same person in the large business group in May.
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