HD Hyundai Chairman Chung Ki-sun will receive a 3.54 percent stake in the company from his father, Chung Mong-joon, chairman of the Asan Foundation. Once the transfer is complete, Chung Ki-sun will become HD Hyundai's second-largest shareholder.
HD Hyundai disclosed Tuesday that the transaction — involving 2.8 million shares, or a 3.54 percent stake — is scheduled for Sept. 3. Based on Tuesday's closing price of 208,500 won ($146 per share), the transfer is valued at 583.8 billion won.
The gift will raise Chung Ki-sun's stake from 6.12 percent to 9.67 percent, surpassing the National Pension Service's 7.12 percent holding and making him the company's second-largest shareholder. Chung Mong-joon, the largest shareholder, will see his stake fall from 26.60 percent to 23.05 percent.
The gift tax will be calculated based on the average share price over a four-month window — two months before and two months after the transaction date of Sept. 3. Based on Tuesday's closing price, Chung Ki-sun's estimated gift tax liability stands at around 350 billion won.
Chung Ki-sun used a 300 billion won gift from his father in 2018 to acquire a 5 percent stake in Hyundai Robotics, now HD Hyundai, and has steadily increased his holding since then.
The grandson of the late Hyundai Group Honorary Chairman Chung Ju-yung and the eldest son of Chung Mong-joon, Chung Ki-sun was promoted from senior vice chairman to chairman last year, ushering in third-generation owner management. The move ended 37 years of professional management at HD Hyundai, which had maintained that structure since 1988.
With Chung Ki-sun resuming stake accumulation since his promotion to chairman last year, analysts expect his grip on the group to tighten further.
joze@heraldcorp.com
