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Family feud over Hyundai ownership goes to court
Seoul, Nov 19: A family feud over control of the Hyundai group spilled into the courtroom today where the future of what was once South Korea`s largest conglomerate could be determined.
Seoul, Nov 19: A family feud over control of the Hyundai group spilled into the courtroom today where the future of what was once South Korea's largest conglomerate could be determined.
The feud pits Hyundai group chairwoman Hyun Jung-Eun against Chung Sang-Yung, the uncle of her late husband, in a battle for control of the business empire that has spearheaded
South Korean projects in North Korea.
Hyun took over the group from her husband -- son of group founder Chung Ju-Young -- who committed suicide in August, acquiring a 27.37 percent stake in the group's holding company, Hyundai elevator, including 18.57 per cent held by her mother. The uncle, however, went on a share buying-spree last month, raising his stake in Hyundai elevator to more than 50 per cent by using Kumgang Korea chemical and other firms under his control.
Hyun then said she planned to issue millions of shares aimed at transforming Hyundai elevator into a public corporation and diluting Chung's control.
Chung hit back immediately with the lawsuit. "We have decided to file for a court injunction against Hyundai elevator's new rights issue plan," Kumgan spokesman Lim Kyo-Ho told media persons, adding documents would be sent to the Suwon district court tomorrow. Kumgang is also seeking a court order to freeze the operations of Hyundai elevator's board, he said.
Bureau Report
Hyun took over the group from her husband -- son of group founder Chung Ju-Young -- who committed suicide in August, acquiring a 27.37 percent stake in the group's holding company, Hyundai elevator, including 18.57 per cent held by her mother. The uncle, however, went on a share buying-spree last month, raising his stake in Hyundai elevator to more than 50 per cent by using Kumgang Korea chemical and other firms under his control.
Hyun then said she planned to issue millions of shares aimed at transforming Hyundai elevator into a public corporation and diluting Chung's control.
Chung hit back immediately with the lawsuit. "We have decided to file for a court injunction against Hyundai elevator's new rights issue plan," Kumgan spokesman Lim Kyo-Ho told media persons, adding documents would be sent to the Suwon district court tomorrow. Kumgang is also seeking a court order to freeze the operations of Hyundai elevator's board, he said.
Bureau Report