Hyosung's Cho Hyun-joon and Cho Hyun-sang Brothers Launch Independent Management... Restructuring into Two Holding Companies System

Temporary General Meeting in June Followed by July Demerger
Vice Chairman Cho Hyun-sang to Lead Newly Established Holding Company

Hyosung. Photo by Jinhyung Kang aymsdream@

Hyosung Group is expected to establish an independent management system between Chairman Cho Hyun-joon and Vice Chairman Cho Hyun-sang as it pushes forward with the establishment of a new holding company centered on advanced materials.

Hyosung Co., Ltd. announced on the 23rd that it held a board meeting and resolved a plan to spin off its investment division for six companies, including Hyosung Advanced Materials, Hyosung Information Systems (HIS), and Hyosung Toyota, to establish a new holding company tentatively named 'Hyosung New Holding Co., Ltd.'

Accordingly, Hyosung Group plans to hold an extraordinary general meeting of shareholders in June to approve the company split, and then reorganize into a two-holding company system with the existing company, Hyosung Co., Ltd., and the newly established Hyosung New Holding Co., Ltd. as of July 1.

Changes in Hyosung's Holding Company Structure Before and After the Split

The existing holding company will remain under Chairman Cho Hyun-joon, while Vice Chairman Cho Hyun-sang will serve as the CEO of the new holding company. The split ratio of Hyosung New Holding is 0.82 to 0.18 based on the net asset book value compared to Hyosung Co., Ltd. Including the mobility platform business sector independently managed by Vice Chairman Cho Hyun-sang, the new holding company’s sales scale reaches around 7 trillion won, with about 90 global bases.

Hyosung explained that the company split was pursued to strengthen responsible management by each holding company and to establish a swift decision-making system capable of agilely responding to rapidly changing management environments. Previously, Hyosung transitioned to a holding company system in 2018.

Once the split is completed, each holding company will form a new board of directors and begin independent management. Chairman Cho Hyun-joon will lead the existing company and strengthen responsible management of existing businesses, while Vice Chairman Cho Hyun-sang will take charge of the new holding company, focusing on solidifying businesses with growth potential such as advanced materials.

Chairman Cho Hyun-joon is the eldest son of Honorary Chairman Cho Seok-rae, and Vice Chairman Cho Hyun-sang is the third son. The current 'two-top system' was established four years ago when Chairman Cho Hyun-joon was designated as the same person (head) in 2021, and Vice Chairman Cho Hyun-sang was promoted to vice chairman after serving as the general manager.

The shares of Hyosung held by the two are similar, with 21.94% and 21.42% as of the end of September last year. Honorary Chairman Cho Seok-rae holds 10.14%.

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