Hyundai Department Store Group Transitions to a Single Holding Company System "Boosting Momentum to Achieve Vision 2030"

Hyundai Department Store and Green Food Tender Offer
Completion of Capital Increase by Contribution in Kind
Completion of Unified Governance Structure

Hyundai Department Store Group has transitioned to a single holding company system. The holding company, Hyundai G.F. Holdings, completed the structure that controls all group affiliates by incorporating its main subsidiaries, Hyundai Department Store and Hyundai Green Food, as subsidiaries through a public tender offer.

Hyundai Department Store Headquarters
[Photo by Hyundai Department Store].

On the 5th, Hyundai G.F. Holdings announced that it completed a paid-in capital increase by contribution in kind worth 331.7 billion KRW, issuing 98,576,164 new shares of its own stock in exchange for receiving 4,201,507 shares of Hyundai Department Store and 9,484,011 shares of Hyundai Green Food from their shareholders to meet the requirements of a holding company.

A paid-in capital increase by contribution in kind refers to issuing new shares of the company in exchange for stocks, rather than cash, based on an exchange ratio. With the completion of this paid-in capital increase by contribution in kind, Hyundai Department Store Group has established a single governance structure linking 'Chairman Chung Ji-sun and Vice Chairman Chung Kyo-sun - Hyundai G.F. Holdings - Hyundai Department Store and Hyundai Green Food, etc.'

Previously, Hyundai G.F. Holdings conducted a public tender offer for Hyundai Department Store and Hyundai Green Food from the 11th of last month to the 1st of this month. As a result, Hyundai G.F. Holdings secured 30.0% of Hyundai Department Store’s shares and 38.1% of Hyundai Green Food’s shares, becoming the largest shareholder of both. Chairman Chung Ji-sun and Vice Chairman Chung Kyo-sun of Hyundai Department Store Group secured 38.1% and 28.0% respectively of the holding company (Hyundai G.F. Holdings) shares through this contribution in kind.

Going forward, Hyundai G.F. Holdings will focus on its role as the group’s holding company, acting as a control tower by managing the overall business portfolio, investment and risk management, enhancing management efficiency, and providing direction for new businesses across the group. Each affiliate, including Hyundai Department Store and Hyundai Green Food, plans to develop growth strategies tailored to their respective business sectors to promote management specialization and advancement.

A Hyundai G.F. Holdings official stated, "By establishing a new governance structure centered on a single holding company, we will enhance management efficiency and maximize synergy among group affiliates," adding, "This will also accelerate the achievement of the group’s mid- to long-term 'Vision 2030'." The official further said, "Hyundai G.F. Holdings will be able to ensure financial stability through dividends received from Hyundai Department Store," and added, "In addition to the existing shareholder return policy, we will protect shareholder rights by expanding dividends and other measures."

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