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[Alpha Biz=(Chicago) Reporter Kim Jisun] Chung Ji-sun, chairman of Hyundai Department Store Group, who switched to a holding company system on the 8th of last month, is drawing attention as he pushes for various shareholder-friendly policies.
According to the Maeil Business on the 6th, Chairman Chung stressed at a management strategy meeting on the 15th of last month, "As Hyundai Department Store Group has shifted to the Hyundai GF Holdings system, a transparent and advanced governance structure, it should establish itself as a more trusted company by customers and the market."
"To this end, let's push for various shareholder-friendly policies in line with the times and trends to enhance corporate value and shareholder value," Chairman Chung said. "Please proceed with the project in a practical and sincere direction without being tied to the form or framework from a ESG perspective."
The management strategy meeting is the first of its kind since Hyundai Department Store Group's transition to a holding company. Chairman Chung's order to increase shareholder value is attributed to the overall sluggish stock prices of the group's affiliates due to the recent sluggish distribution industry. It is noteworthy that it has declared the enhancement of shareholder value as the top priority since the transition to a holding company.
Hyundai Department Store Group is planning to incinerate treasury stocks of holding companies and major affiliates as a direct way to enhance shareholder value. On the 12th, Hyundai GF Holdings, a holding company, will incinerate treasury stocks worth 4% of the total issued shares. Hansum will also buy about 2 percent of the total number of shares issued by Feb. 2 next year, and then incinerate about 5 percent of its shares, including existing ones.
In addition, the government will take measures to strengthen transparency, including the introduction of an electronic voting system and the expansion of the ESG management committee.
Hyundai Department Store Group is considered one of the major conglomerates with high management transparency. According to the latest data released by the Fair Trade Commission, 13 out of 28 affiliates of Hyundai Department Store Group were listed, with a 46% initial public offering ratio. It is the No. 1 among 10 large companies with more than 10 affiliates evaluated by the FTC.
Hyundai Department Store Group's efforts to enhance transparency are also recognized externally. In a recent 2023 ESG evaluation released by the Korea Corporate Governance Research Institute (KCGS), all listed affiliates subject to the evaluation received an "integrated A" rating or higher, while Hyundai Department Store received an "integrated A+" rating for the first time in the distribution industry.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
