Jang Hye-seon, the eldest daughter of Jang Hyeong-jin, an advisor at Yeongpoong, recently purchased a 30% stake in Yeongpoong Bookstore for a total of 1.28 billion KRW over the past year, instantly becoming the largest individual shareholder. Analysts suggest that in Yeongpoong Group, which has completed the management succession process to the sons, Yeongpoong Bookstore will be the final puzzle in the succession.
According to the Financial Supervisory Service's electronic disclosure on the 3rd, the Yeongpoong Bookstore board of directors resolved on March 29 to issue 35,715 new shares through a rights offering. Yeongpoong Bookstore shareholders are Yeongpoong Bookstore Holdings, which holds an 80% stake, and Ms. Jang, who holds 20%. However, the largest shareholder, Yeongpoong Bookstore Holdings, withdrew from the rights offering, and Ms. Jang decided to acquire all the unsubscribed shares. The Yeongpoong Bookstore board also resolved on the same day to reallocate the unsubscribed shares.
By acquiring 10% of the unsubscribed shares, Ms. Jang's stake in Yeongpoong Bookstore increased to 30%. The purchase price for the unsubscribed shares was 25,076 KRW per share, totaling 895.59 million KRW. Previously, in March last year, Ms. Jang purchased a 20% stake in Yeongpoong Bookstore for 385.7 million KRW through a third-party rights offering. The price per share was 7,714 KRW.
In August 2020, Yeongpoong Bookstore underwent a physical division into the surviving company Yeongpoong Bookstore Holdings and the newly established company Yeongpoong Bookstore. The plan was for Yeongpoong Bookstore to handle the existing bookstore business, while Yeongpoong Bookstore Holdings would manage other businesses. Through this physical division, Yeongpoong Bookstore Holdings came to hold 100% of Yeongpoong Bookstore's shares.
Yeongpoong Bookstore Holdings is controlled by the Jang family. The Jang family's total stake is 57.5%. CK, the largest shareholder of Yeongpoong Bookstore Holdings with a 33.95% stake, is a private company owned 100% by the children of advisor Jang Hyeong-jin. The eldest son, Jang Se-jun, CEO of Korea Circuit; the second son, Jang Se-hwan, CEO of Seorin Sangsa; and Ms. Jang each hold an equal 33.33% stake in CK. The Choi family of Korea Zinc holds a 33% stake in Yeongpoong Bookstore Holdings.
Ms. Jang's acquisition of shares in Yeongpoong Bookstore is seen as the completion of advisor Jang Hyeong-jin's succession process. CEO Jang Se-jun currently holds 16.89%, making him the largest shareholder of Yeongpoong, and CEO Jang Se-hwan holds 11.15%, the second-largest shareholder.
A Yeongpoong Group official said regarding Ms. Jang's purchase of Yeongpoong Bookstore shares, "We have no knowledge of this." However, they added, "After COVID-19, Yeongpoong Bookstore's financial situation worsened, and the owner family provided financial support."
An industry insider said, "Yeongpoong Group has traditionally used unlisted companies to carry out a 'hidden succession' to the children," adding, "It appears that this time as well, the company is being passed on to the eldest daughter in a similar manner."
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