Hyundai Heavy Industries Group Introduces Growth Sharing Program

Implementation of 'Stock Purchase Reward System' for Group Company Employees as First Initiative

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Heavy Industries Group announced that it will introduce a Growth Sharing Program (GSP) for employees of its group companies.

The 'Growth Sharing Program' is designed to enhance employee welfare, with the first initiative being the implementation of a stock purchase reward system. This system applies only to those who wish to participate, providing financial support when employees of listed companies purchase their company's shares, and employees of unlisted companies purchase shares of the parent company.

Hyundai Heavy Industries Group consists of six listed companies: Hyundai Heavy Industries Holdings, Korea Shipbuilding & Offshore Engineering, Hyundai Mipo Dockyard, Hyundai Construction Equipment, Hyundai Electric, and Hyundai Energy Solutions. There are also about ten unlisted companies, including Hyundai Oilbank.

As the first case, the program will be prioritized for employees of unlisted companies such as Hyundai Oilbank, which previously had no opportunity to acquire company shares, as well as Hyundai Robotics and Hyundai Global Service. These employees will receive benefits from the program when they acquire shares of Hyundai Heavy Industries Holdings after October.

If employees of these three companies acquire and hold shares of the parent company, Hyundai Heavy Industries Holdings, for at least six months, they will receive 10% of the purchase amount back in cash. Employees can receive company support up to 30 million KRW annually based on the stock purchase price, with a maximum support limit of 3 million KRW per year.

Starting with these three companies, Hyundai Heavy Industries Group plans to establish and apply detailed measures such as the timing and level of rewards for the stock purchase reward system according to the circumstances of each group company.

A Hyundai Heavy Industries Group official stated, "The Growth Sharing Program upgrades the existing benefit-focused welfare into an investment-type program that reflects company performance in employee welfare. We believe the current company value is undervalued due to external factors such as COVID-19, and thus we are implementing the stock purchase reward system as the first program to share profits from future value increases."

Meanwhile, Hyundai Heavy Industries Group plans to continuously discover and develop various 'Growth Sharing Programs' that enable win-win outcomes for both the company and employees, beyond the stock purchase reward system.