Chung Mong-joon, chairman of the Asan Foundation, is gifting 3.54% of HD Hyundai's shares to his son, Chung Ki-sun, who is the president of the company. This move comes less than a year after Chung Ki-sun took over as chairman, marking a significant step in the succession process at HD Hyundai.
According to the Financial Supervisory Service's electronic disclosure system, Chung Mong-joon plans to transfer 2.8 million shares (3.54% stake) to Chung Ki-sun on September 3. Based on the closing price of 208,500 won per share on August 4, the total value of the gift is approximately 583.8 billion won. Following this transfer, Chung Ki-sun's stake in HD Hyundai will rise from 6.12% to 9.67%, surpassing the National Pension Service's 7.12% stake, making him the second-largest shareholder.
Chung Mong-joon's ownership will decrease from 26.60% to 23.05%, but he will retain his position as the largest shareholder. Analysts view this gift as a strategic move to facilitate Chung Ki-sun's succession. The timing of the gift, coinciding with a 30% drop in HD Hyundai's stock price from its peak, may also help reduce tax burdens.
The estimated gift tax Chung Ki-sun will face, based on current stock prices, is around 350 billion won. Given the substantial tax liability, it is likely he will utilize an installment payment system and consider stock-backed loans to manage the financial impact.
A business insider noted, "Recently, many large company owners have been transferring shares in multiple stages to mitigate tax burdens. HD Hyundai is also expected to proceed with a gradual succession plan, taking into account future business conditions and stock prices."
This is the third time Chung Mong-joon has made a significant gift to Chung Ki-sun. In 2018, he gifted 300 billion won in cash to enable his son to acquire shares in Hyundai Robotics, the predecessor of HD Hyundai. In 2024, Chung Ki-sun used funds received from his father to purchase an additional 682,500 shares, increasing his stake to 6.12%. This latest gift marks an increase in his holdings after nearly two years.
* This article has been translated by AI.
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