BGF Hong Jeong-guk in 'Distribution', Hong Jeong-hyeok in 'Material Business'... Second-Generation Management in Full Swing

Hong Jeong-hyeok Sells All BGF Retail Shares
Strengthens Position in Group Leading Materials Business
Hong Seok-jo Gifts Shares to Two Sons

[Asia Economy Reporter Lim Chun-han] The curtain has risen on the 'second-generation management' of BGF Group, marked by Chairman Hong Seok-jo transferring shares to his eldest son, Hong Jung-guk, President and CEO of BGF, and his second son, Hong Jung-hyuk, CEO of BGF Eco Materials and Head of BGF New Business Development Office (President). President Hong Jung-guk will lead the distribution business, while CEO Hong Jung-hyuk will head the materials business.

According to the Financial Supervisory Service's electronic disclosure system on the 6th, CEO Hong Jung-hyuk sold all 13,776 shares of BGF Retail stock in three transactions between the 1st and 5th. The total amount was approximately 2.785 billion KRW. This sale is analyzed as a share adjustment following the establishment of the 'brotherly management' structure.

President Hong Jung-guk has been involved in overall management since serving as Vice President of BGF Retail in 2017 and President of the holding company BGF in 2020, but CEO Hong Jung-hyuk had not been very prominent until recently. However, within a year, CEO Hong Jung-hyuk's position has significantly changed. This year, he became the integrated head of the materials affiliates, and in the 2023 organizational restructuring and regular personnel appointments, he was promoted to President, increasing his standing within the group.

CEO Hong Jung-hyuk graduated from Carnegie Mellon University in the United States and completed a master's program in business administration at Keio University in Japan. Afterward, he worked at Nexon, Mitsubishi, and as a regional strategy consulting manager for ASEAN at KPMG Singapore before joining BGF in 2018, immediately becoming Head of New Business Development Office.

In particular, CEO Hong Jung-hyuk has achieved significant success by growing the white bio-materials business. BGF Group established BGF Eco Bio in 2019 and started the bioplastic materials business, acquiring KBF, an eco-friendly plastics company. In December last year, they acquired Copra, a specialized manufacturer of engineering plastic compound materials. Throughout this process, CEO Hong Jung-hyuk directly led mergers and acquisitions (M&A), driving the growth of new businesses.

Earlier, on the 30th of last month, Chairman Hong gifted 10,025,095 shares of BGF stock each to his two sons. The shares held by Chairman Hong decreased from 50,159,219 to 31,009,025, reducing his stake from 53.34% to 32.4%. President Hong Jung-guk's stake increased from 10.29% to 20.77%, and CEO Hong Jung-hyuk's stake rose from 0.03% to 10.5%.

This share transfer within BGF Group is interpreted as a full-scale entry into brotherly management and an enhancement of shareholder value through strengthened responsible management. Nam Sung-hyun, a researcher at IBK Investment & Securities, said, "This signifies the full-scale launch of second-generation management," adding, "It is interpreted as a commitment to strengthening capabilities in new business sectors while achieving stable growth based on the convenience store business."

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