[Governance] Hyosung Family 4th Generation Expands Group Affiliates' Shareholding Amid Stock Price Decline

Chairman Cho Hyun-joon and Vice Chairman Cho Hyun-sang's Children
Hyosung, Hyosung Advanced Materials, Hyosung Chemical, and Other Major Affiliates Concentrate Share Purchases
Stock Price Decline Seen as an Opportunity to Acquire Shares

[Asia Economy Reporter Park So-yeon] The fourth generation of the Hyosung Group has taken advantage of the stock price decline caused by the spread of the COVID-19 Omicron variant to expand their stakes in the group’s major affiliates.

According to the Financial Supervisory Service’s electronic disclosure system on the 14th, Jo Hyun-joon, Chairman of Hyosung, and his children In-young (20), In-seo (16), and Jae-hyun (10), along with Jo Hyun-sang, Vice Chairman, and his children In-hee (12), Su-in (10), and Jae-ha (7), purchased a total of 8.3 billion KRW worth of affiliate stocks on the market from December last year to the 10th of this month.

In-young, the eldest daughter of Chairman Jo, bought Hyosung affiliate stocks worth 950 million KRW over twelve transactions from December last year to January this year. She purchased 2,643 shares (0.01%) of the holding company Hyosung for 230 million KRW, raising her stake to 0.11%. She also increased her shares in Hyosung Advanced Materials, Hyosung TNC, and Hyosung Chemical by an additional 0.01% to 0.03%. Her stakes in these three major affiliates rose to 0.04%, 0.04%, and 0.06%, respectively.

The second child, In-seo, also accumulated affiliate shares worth 950 million KRW during the same period. As a result, she holds 0.11% of Hyosung, 0.04% of Hyosung Advanced Materials, 0.04% of Hyosung TNC, and 0.06% of Hyosung Chemical. The third child, Jae-hyun, purchased a total of 1.6 billion KRW worth of Hyosung affiliate stocks from December 30 last year to the 10th of this month, holding 0.09% of Hyosung, 0.02% of Hyosung Advanced Materials, 0.02% of Hyosung TNC, and 0.03% of Hyosung Chemical.

In-hee, the eldest child of Vice Chairman Jo, also bought Hyosung affiliate stocks worth 1.6 billion KRW during the same period. Her holdings increased to 0.09% of Hyosung, 0.02% of Hyosung Advanced Materials, 0.02% of Hyosung TNC, and 0.03% of Hyosung Chemical. The second child, Su-in, invested about 1.6 billion KRW during the same period, acquiring 0.02% of Hyosung, 0.02% of Hyosung Advanced Materials, 0.02% of Hyosung TNC, and 0.03% of Hyosung Chemical. Jae-ha also purchased stocks worth 1.6 billion KRW, holding 0.02% of Hyosung, 0.02% of Hyosung Advanced Materials, 0.02% of Hyosung TNC, and 0.03% of Hyosung Chemical.

The fourth generation’s stock purchases were made in Hyosung, which sits at the top of the group’s governance structure. Hyosung Advanced Materials, Hyosung TNC, and Hyosung Chemical are key subsidiaries with high sales proportions within the group. An industry insider commented, "It is highly likely that the fourth generation is buying affiliate shares at low prices to secure succession funds through future dividend increases."

Meanwhile, the fate of Honorary Chairman Jo Seok-rae’s shares has not yet been decided. Chairman Jo holds 9.48% of the holding company Hyosung, as well as 10.18% of Hyosung Heavy Industries, 8.25% of Hyosung TNC, 10.18% of Hyosung Advanced Materials, and 6.7% of Hyosung Chemical.

This content was produced with the assistance of AI translation services.