[Infostock Daily=Reporter Kim Jong-hyo] Hyundai Motor Group is the talk of the town with the acquisition of Boston Dynamics, a world-class robot company.
Hyundai Motor Group acquired 80% of stake in Boston Dynamics for a total of 960 billion won. The following parties acquired the 80% stake of the Boston Dynamics: Hyundai Motors (30%), Hyundia Mobis (20%), Hyundai Glovis (10%), and Chairman of Hyndai Motor Group Chung Eui-sun (20%).
The Solidarity for Economic Reform raised a question about the 20% stake acquired by Chairman Chung Eui-sun.
Hyundai Motor Group responded, "We originally intended to purchase only 60 percent of Boston Dynamics' stake, However, Softbank, a former major shareholder of Boston Dynamcis, demanded to purchase 80% of stake. Thus, Chairman Chung Eui-sun had no option but to purchase remainder of shares."
Chairman Chung Eui-sun acquired a stake in Hyundai Glovis at a low price before taking the chairmanship. It is well known that the entire Hyundai Motor Group helped Hyundai Glovis grow in revenue and profit by tranporting all vehicles through them. In the Meanwhile, Chairman Chung increased his dominance of the group by utilizing complex cross-shareholding strucuture.
Chae Yi-bae, a former Congressman of the People's Party, pointed out, "SK Group Chairman Choi Tae-won and Hyundai Motor Groups Chung Eui-sun have long been criticized for usurpation of corporate opportunity. Choi Tae-won made personal investement during SK Siltron takeover, and Chung Eui-sun made personal investement in Boston Dymanamic acquisition. Both actions were to grow personal wealth by riding the curtails of the corporate opportunity"
Chairman Chung Eui-sun's Hyundai Glovis became an empitome of unethical succession for Korean chebol's wealth along with Samsung Everland (currently Samsung C&T) and SKC & C (currently SK). Since then, other Korean conglomerates and mid-sized companies have followed the steps to hand down the company and wealth.
As soon as Chairman Chung Eui-sun inherited Hyundai Motor Group, he now took part in acquisition of a growing company in overseas by investing his own money.
Even if I accept Hyundai Motor's explanation that Chairman Chung made an executive decision to acquire the company for the future growth, I concluded this move as Chairman Chung's successful investement in the company with great growth potential.
"Chairman Chung Eui-sun used his position to take advantage of the benefits that Hyundai Motor's major affiliates should gain," said Han Chi-ho, Managing Director of Central Interville, in the Infostock Daily. He also commented, "Anyone would love to invest in such opportunities as Chairman Chung Eui-sun did."
The other question that i have is "wasn't there any other affiliates of Hyndai Motro Group to take over the remaining 20%?" In addition, it is notable that Hyundai Glovis, which Chairman Chung is the the largest shareholder, acquired only a 10% stake in Boston Dynamics, to stay below the thredhold of internal transactions under the Fair Trade Act.
Under the current law, the FTC's position is still neutral on the Chairman Chung Eui-sun's investment in Boston Dynamics. No unfair act such as illegal internal transactions have occurred.
Hyundai Motor's position on its Chairman is firm. They claimed that Chairman Chung Eui-sun's acquisition of a stake in Boston Dynamics is fundamentally different from SK Chairman Choi Tae-won's acquisition of Siltron.
Chae Yi-bae, a former Congressman, said, "Hyundai Motor Group has put an emphasis on ESG management. If they continue to demonstrate poor corporate governance and take advantage of private interests, ESG management is only greenwashing."
The most worrisome thing in business field is that Chairman Chung Eui-sun's acquisition of a stake in the Boston Dynamics could become a money-making formula for Korean Chaebol chairmen like the aforementioned corporate succession schematic.
Reporter Kim Jong-hyo kei1000@infostock.com
