Hyundai Elevator Purchase Keeps Chung in the Saddle

The mother-in-law of Hyundai Asan Chairman Chung Mong-hun bought a 9.8-percent stake in Hyundai Elevator Friday, to become the largest shareholder in the firm. Market observers said the purchase came so that Mr. Chung can retain control over the Hyundai Group through Hyundai Elevator after a debt-equity swap for Hyundai Engineering & Construction which will leave control of that firm in the hands of creditors.

Mr. Chung, the largest shareholder in Hyundai Construction, will lose management rights at the builder when its capital is zeroed out prior to the debt-equity swap. If the builder, which has been the hub of a network of Hyundai businesses, falls into other hands, Hyundai Elevator will be the de facto holding company of the remaining Hyundai units.

According to the Korea Stock exchange and Hyundai Elevator, Kim Moon-hee, the mother of Mr. Chung's wife, bought 550,000 shares of Hyundai Elevator, a part of 1.24 million shares in the firm placed on the market by Hyundai Corp., for 4.56 billion won ($3.40 million) in after-hours trading. Ms. Kim became the largest shareholder with an 18.5 percent stake.

by Kim Nam-joong