Hyundai Heavy Industries (HHI) Business Group has embarked on a voyage to make a new leap forward under the freshly inaugurated holding company system on March 30.
Hyundai Robotics, the holding company of HHI Group, has been renamed as Hyundai Heavy Industries (HHI) Holdings, and former HHI Vice Chairman Kwon Oh-gap has been appointed to vice chairman and CEO of the holding company.
HHI Senior Executive Vice Chairman Chung Ki-sun rose to the third largest shareholder of Hyundai Robotics by acquiring a 5.1 percent stake in the company on March 29, to strengthen the owner family’s rein over the holding company.
Speaking at a regular shareholders’ meeting of the holding company, and a ceremony to launch it, Vice Chairman Kwon said, “HHI Holdings will provide full support so that each company can put into practice responsible management and independent management by furthering strengthening professional managers’ operation.”
HHI Holdings, a holding company being managed by a minimum manpower, focuses on exploring future businesses, restructuring business portfolios and providing support to each subsidiary’s rising to a global leading company.
HHI Group has completed the restructuring of corporate governance designed to introduce a holding company system less than one year after HHI was divided into four separate entities.
Senior Executive Vice President Yoon Jeung-geun has been reappointed as an inside director of the holding company of the group together with Vice Chairman Kwon during the regular shareholders’ meeting, while lawyer Hwang yoon-sung of law group Min Ju has become an outside director. Five proposals, including a change in articles of association, have been approved.
“Today is a significant day marking one year since HHI Group shifted into a holding company system through business demerger amid shareholders and market expectations,” Vice Chairman Kwon said. Even though business environment conditions are still uncertain, if all join forces, they will overcome a crisis and make a leap forward, he said.
HHI Holdings will focus on technology and quality as a core driving force of the group and devote itself to nurturing manpower, said Vice Chairman Kwon. He also revealed a plan to establish an advanced R&D center in Pangyo, Gyeonggi-do.
In November 2016, the business group announced a shift into a holding company system that was designed to improve its corporate governance by eliminating a chain of cross-shareholdings and strengthening its transparent management. An extraordinary shareholders’ meeting of HHI, which was convened in February 2017, approved the measure, making Hyundai Robotics its holding company. In April 2017, Hyundai Robotics, Hyundai Electric and Hyundai Construction Equipment were established as separate corporate entities.
Vice Chairman Kwon said non-core assets had been disposed for the past one year, the business portfolios had been restructured with a focus on core businesses, and irrational decisions and malpractices had been revamped. It was a process to lay the foundation to a make a leap forward, he added.
The public’s attention was on the fact that HHI Senior Executive Vice Chairman Chung Ki-sun, the son of Asan Foundation Chairman Chung Mong-joon, acquired Hyundai Robotics shares worth 350 billion won or a 5.1 percent stake.
The junior Chung inherited 300 billion won from the senior Chung and borrowed 50 billion won in loans. The junior Chung’s stakes in major HHI group subsidiaries were lower. The junior Chung’s latest acquisition of the holding company is evaluated to show a determination of implementing responsible management as one of HHI Group’s major management members, business sources said.
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