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Hyundai Group kicked out of the antitrust guideline on large conglomerates

Collected: 2016.10.21

Distributed: 2016.10.24

Source: Go Direct

Once-mighty South Korea’s Hyundai Group has lost its old glory and is no longer strictly speaking a chaebol, having fallen out of the rank of large conglomerate subject to extra scrutiny for unfair trade practices. Its rank and scale significantly shriveled after the group shed lucrative Hyundai Securities as part of efforts to keep Hyundai Merchant Marine afloat.

According to the Fair Trade Commission (FTC) on Thursday, the group’s total asset that was 12.8 trillion won as of April this year shrank to 2.56 trillion won ($2.3 billion). A company with assets of 10 trillion won or more are now categorized as large enterprise under the FTC scale after the bar was raised from 5 trillion won in June.

Early this year, the group sold stakes in Hyundai Securities Co. at around 1 trillion won to KB Financial Group as part of efforts to rescue its debt-ridden shipping unit Hyundai Merchant Marine Co. The container carrier was separated and handed over to its main creditor Korea Development Bank. Much of the group’s share in the shipper also evaporated after capital decrease.

Hyundai Group under charismatic founder Chung Ju-yung had ranked first among the large conglomerate group when the FTC first introduced the category in 1987.

By Na Hyun-joon

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