KCC Honorary Chairman Sang-young Sang-young draws a composition from 20 years ago to avoid exhausting succession controversy

KCC Honorary Chairman Sang-young Sang-young, the youngest brother of the late Hyundai Group Honorary Chairman Chung Ju-young, witnessed the Hyundai Group’s’Prince’s Difficulty’ from a very close range in the early 2000s. Having raised the KCC Group, he has been striving to clarify the succession structure 20 years ago so that such tragedies are not reproduced even among his sons.

It is believed that Chung’s honorary chairman made a plan to clearly divide the business areas of KCC and pass it on to his three sons. KCC will hand over to the eldest son, the glass and auto glass business to the second son, and KCC E&C to the third son. It was thought that only by clearly dividing the business field would prevent future management disputes between siblings.

The transfer of management rights began in the early 2000s. In 2000, Chairman Chung Mong-jin, the eldest son of Honorary Chairman Chung, was elected as KCC President. Afterwards, in 2004, Honorary Chairman Chung donated his shares to his three sons, and naturally led Chairman Chung Mong-jin to become the largest shareholder of KCC. Since then, Chairman Chung Mong-jin has steadily purchased stocks and has increased his stake in KCC to 18.55% as of the end of September last year.

The second son, Chairman Chung Mong-ik, has expanded management rights through Korea Auto Glass, which was jointly established by Japan Asahi Glass and KCC in 2003. KCC, which had also been conducting the glass business until then, divided KCC Glass, the glass division, from KCC in January of last year. Since then, in October of last year, KCC Glass & Materials merged with Korea Auto Glass, which Chairman Mong-ik Chung owns a significant number of shares, and Chairman Mong-ik Chung succeeded in acquiring independent management rights from KCC.

Samnam Chairman Chung Mong-yeol also began to approach KCC E&C’s management rights in the early 2000s. In 2003, he purchased shares from KCC and others, and began to expand the share of KCC E&C. Since then, in 2009 and 2016, after receiving honorary chairman Chung’s share of KCC E&C twice, KCC E&C became the second largest shareholder (29.99% stake).

Thanks to the succession work that began in the early 2000s, the KCC Group is facing a smooth division of its affiliates without any noise until now. All of the second generations of Honorary Chairman Chung have held the title of chairman, and the governance structure has been reorganized in a large framework.

Although KCC is still the largest shareholder (36.03% stake) of KCC E&C, the division of the subsidiary has not been completely finished, but the exchange of shares between the siblings allows all three brothers to secure the position of the largest shareholders of their respective businesses.

A business official said, “Because KCC has been continuously pursuing the division of the division for a long time, we are in front of the finish without making a big noise. If there are no big variables, all three sons of Honorary Chairman Chung will succeed in a complete division of division sooner or later. .