‘BGF Group's Second Son’ Hong Jeong-hyeok Sells All Shares of BGF Retail

Eldest Son in Distribution, Second Son in Material Business

Jung-Hyuk Hong, CEO of BGF Eco Materials and Head of New Business Development at BGF (President). (Photo by BGF Retail)

[Asia Economy Reporter Lim Chun-han] Hong Jung-hyuk, the second son of Hong Seok-jo, chairman of BGF Group, and CEO of BGF Ecomaterials as well as head of BGF New Business Development Office (President), has sold all his shares in BGF Retail.

On the 5th, BGF Retail announced that CEO Hong Jung-hyuk sold 13,776 shares of BGF Retail over three transactions between the 1st and 5th. The total value of the sale amounts to 2.785 billion KRW.

This sale is analyzed to be part of a shareholding adjustment following the establishment of a management structure where the eldest son, Hong Jung-guk, CEO of BGF, leads the distribution business, and the second son, Hong Jung-hyuk, leads the materials business.

Previously, on the 30th of last month, Chairman Hong gifted 10,025,095 shares of BGF to each of his two sons. The shares held by Chairman Hong decreased from 50,159,219 to 31,009,025, reducing his stake from 53.34% to 32.4%. CEO Hong Jung-guk's stake increased from 10.29% to 20.77%, and CEO Hong Jung-hyuk's stake rose from 0.03% to 10.5%.