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[Apha Biz=(Chicago) Reporter Paul Lee] With the change of the largest shareholder of KG Mobility (formerly Ssangyong Motor), the influence of KG Chemical CEO Kwak Jung-hyun, the second-generation manager of KG Group, is growing.
According to the industry on the 3rd, KG Mobility Holdings, the largest shareholder of KG Mobility, was merged into KG ETS on the 2nd. As a result, the largest shareholder with a 58.86% stake in KG Mobility has also been changed to KG ETS. The purpose of the merger is to "improve management efficiency by improving governance structure and integrating management organizations."
KG ETS is a company that makes bio-heavy oil for power generation using cashew oil and palm oil. With this merger, KG Group will form a governance structure that leads to 'KG Zeroin → KG Chemical → KG ETS→KG Mobility'.
Kwak Jung-hyun, the eldest son of KG Group Chairman Kwak Jae-sun, effectively controls KG Chemical, the largest shareholder of KG ETS. Although Kwak's stake in KG Chemicals is small at 3.07%, he directly or indirectly holds more than a 23% stake as KG Zeroin, the largest shareholder, holds a 20.65% stake in KG Chemicals.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
