KCC Group under co-management by 3 sons unshaken by the death of patriarch

[Photo by KCC Group]

South Korea’s KCC Group would stay unshaken by the death of Honorary Chairman Chung Sang-young as the building-focused conglomerate has been under stable co-management by his three sons over the last two decades.

Chung Sang-young, the youngest brother of the late Hyundai Group founder Chung Ju-yung, passed away due to a chronic illness on Jan. 30 at the age of 84, closing the chapter for the founding generation of the Hyundai empire.

As of the end of September last year, Chung held a 5.05 percent stake in KCC Corp., a 5.41 percent stake in KCC Glass, etc. The combined stakes are worth around 120 billion won ($107.5 million) based on the Friday closing price.

Chung has incrementally handed down his shares to his sons since 2000. Some of his holdings, 7.35 percent or 773,369 shares in KCC Corp., were gifted to the three in 2004, making the first son Chung Mong-jin the largest shareholder.

Mong-jin was inaugurated as chairman of KCC in 2005 and since then has steadily bumped up his stake to 18.55 percent as of the end of September last year.

In January last year, KCC Glass Corp. under the leadership of the second son Chung Mong-ik was spun off from KCC. Mong-ik merged KCC Glass with another KCC family unit Korea Autoglass Corp. and raised his holdings to 19.49 percent to tighten his grip in October.

The third and youngest son Chung Mong-nyul took control over KCC E&C Co. as the president & CEO since his father gifted his entire stake in the construction unit to him in 2016.

The remaining shares are likely to go evenly to the sons to tighten their grip over their corporate share.

KCC shares on Monday closed 1.01 percent higher at 200,500 won ($179.58) in Seoul. KCC Glass shares rose 4.72 percent to 37,750 won, and KCC E&C up 3.54 percent to 9,060 won.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]