Firms Chung Left Behind Are Now Tarnished Stars

Investors in Korea's stock markets Thursday appeared oblivious to the death of Chung Ju-yung, former chairman and founder of the Hyundai Group. Still, the tycoon's departure from the scene is reverberating among the 22 Hyundai units that are listed on the main exchange.

The Hyundai affiliates, many of which were once market leaders, have lost ground since last year due to the groups' money problems. Some analysts blamed them for hampering the local equity market, because as they faltered problems were exposed at other Korean businesses, such as the inefficient family-controlled management and reckless expansion awash in a river of debt.

Share prices of listed Hyundai units are relatively low, compared with their contribution to the national economy. They accounted for 18.2 percent of the gross domestic production as of the end of 1999; the total value of their shares stood at 9.06 trillion won ($6.87 billion), or 6.32 percent of the market.

Hyundai units' share of total market capitalization stood at 7.96 percent at the end of last year, but the debt crisis at some of the affiliates weighed heavily on their share prices. On Wednesday, their value accounted for 6.78 percent of the exchange.

by Kim Hyun-chul