Both companies submit application for change of the same person… FTC, announced in May
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It is reported that the Hyundai Motor Group submitted an application to the Fair Trade Commission requesting that the total number of companies be changed from honorary chairman Chung Mong-koo to chairman Eui-sun Eui-seon.
Hyosung Group also requested that the total number be changed from Honorary Chairman Cho Seok-rae to Chairman Cho Hyun-joon.
According to the business community on the 1st, Hyundai Motor Group and Hyosung Group recently submitted an application for change of the same person (total number) to the FTC.
In May each year, the Fair Trade Commission appoints and announces a group of companies subject to disclosure of 5 trillion won or more in total assets and a group of companies that limit mutual investment of 10 trillion won or more. The FTC designates the same person at this time.
The same person is the actual governor of the enterprise and has all responsibilities related to the collective designation data. Depending on who the FTC designates as the same person, the company subject to the sanctions for specially related persons and the total number of family interests may change.
The FTC’s criteria for designating the same are the actual exercise of control. The Fair Trade Commission designates the same person if the ownership interest has at least a large impact on management activities.
The business community sees Hyundai Motor’s request for the change of the same person as a scheduled procedure as Chairman Eui-seon Eui-seon takes control of the group as a result of the inauguration of Chairman Eui-seon Eui-seon in October last year.
If Chairman Eui-seon Eui is designated as the same person this time, the total number of Hyundai Motors will change in 21 years. When Hyundai Motor Company was separated from the Hyundai Group in September 2000, it was first designated as a large corporate group in 2001. Since then, the president has been honorary chairman Chung Mong-koo.
The Hyundai Motor Group is expected to open the’Era of Justice Line’ with this application for the change of the same person designation.
It is known that Hyosung Group submitted an application for change of the same person, and presented the health of Honorary Chairman Cho as the reason for the request for change of the same person.
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The documents submitted by Hyosung Group to the FTC were reported to contain documents stating that Honorary Chairman Cho’s hospital medical certificate and part of Honorary Chairman Cho’s stock voting rights (9.43%) were delegated to Chairman Cho Hyun-joon along with the application for change of the same person.
As of the end of September last year, Hyosung Group’s eldest son, Cho Hyun-joon, owns 21.94% of the holding company, and the third son, Cho Hyun-sang, owns 21.42%.
The health status of Honorary Chairman Cho is a factor in determining whether the FTC will change the designation of the same person, and is a matter that can affect the execution of the sentence of Honorary Chairman Cho in the future.
Honorary Chairman Cho was sentenced to three years in prison at the second trial on charges of evading taxes worth 130 billion won, but was not arrested in court considering his health status. In December of last year, the Supreme Court returned the case to the Seoul High Court after judging some of the charges of evading corporate tax as innocent and guilty of illegal dividends.
The Criminal Procedure Act allows a prisoner to suspend execution when there is a concern that he or she cannot preserve his or her health due to execution of a sentence.
In this situation, it is known that the FTC internally disagrees over whether or not to accept the Hyosung Group’s request for change of the same person.
Meanwhile, the Fair Trade Commission is scheduled to announce the same person in the large business group in May.
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