HS Hyosung's 'First Step'... Cho Hyun-sang "Affiliated Separation Work Unlikely to be Easy Within the Year"

Attending the Korea-Vietnam Business Forum by KCCI
"Separation of affiliates may take some time"
"Process is complicated due to many intertwined shares"

On the 1st, Jo Hyun-sang, Vice Chairman leading HS Hyosung, the newly established holding company of Hyosung Group officially launched on the same day, stated that the process of separating Hyosung's affiliates would take some time.

Cho Hyun-sang, Vice Chairman of HS Hyosung and Chairman of the Korea-Vietnam Economic Cooperation Committee, is delivering the opening address at the "Korea-Vietnam Business Forum" held at Lotte Hotel in Jung-gu, Seoul, on the morning of the 1st.
[Image source=Yonhap News]

Vice Chairman Jo attended the 'Korea-Vietnam Business Forum' hosted by the Korea Chamber of Commerce and Industry at Lotte Hotel in Jung-gu, Seoul, and told reporters that "it will not be easy within this year" regarding the timing of the affiliate separation.

He explained that although preparations for the group’s affiliate separation are ongoing, "it seems it will take some time to proceed according to the original plan for affiliate separation," adding, "there are many intertwined shareholdings, so the process is more complicated than expected." He further added, "Since no date has been set yet for the affiliate separation, we will arrange another opportunity to inform you again."

HS Hyosung took its first step on the 1st with major affiliates including HS Hyosung Advanced Materials, HS Hyosung Information Systems, HS Hyosung Holdings USA, HS Hyosung The Class, HS Hyosung Toyota, HS Hyosung Vina Logistics Corporation, and Gwangju Ilbo. Vice Chairman Jo, the inaugural CEO, stated that "investments related to the portfolio we are currently engaged in will continue."

Regarding mergers and acquisitions (M&A), he said, "M&A is one of the ways a company grows, so it is difficult to specify any particular field," and added cautiously, "(M&A) may or may not occur, and the company does not grow solely through M&A."

The business community expects that with the launch of HS Hyosung, the complete separation of affiliates will be achieved through shareholding arrangements between Chairman Jo Hyun-joon and Vice Chairman Jo, who have led Hyosung Group through 'brotherly management' until now.

Meanwhile, at the Korea-Vietnam Business Forum held that day, Vice Chairman Jo, who serves as the chairman of the Korea-Vietnam Economic Cooperation Committee, attended alongside his elder brother, Chairman Jo Hyun-joon of Hyosung Group. Hyosung entered Vietnam in 2007 and has invested a total of 3.6 billion dollars (approximately 4.8 trillion won), operating nine local corporations producing tire cords, spandex, and more.