On Paper, Company Chiefs Reap Big Gains as Firms' Value Climbs

Heads of major Korean conglomerates have reaped handsome paper profits from their company stock holdings.

The Korea Stock Exchange said Tuesday that the total market capitalization of Korea's top 10 conglomerates, excluding Pohang Iron & Steel Co., rose 5.9 percent this year through last week.

The value of shares held by the chairmen of these conglomerates in their firms' stock market-listed subsidiaries jumped 20.5 percent to 1.2 trillion won ($915 million).

"Share prices of subsidiaries in which the chairmen have stakes performed better than those of other subsidiaries not held by the tycoons," a Korea Stock Exchange official said.

Chung Mong-koo, chairman of Hyundai Motor Co., posted a 115 percent increase in the value of his stock holdings in the company during the cited period, which were boosted by steep rises in the value of shares of the carmaker and its auto parts subsidiary, Hyundai Mobis.

In contrast, Chung Mong-hun, his brother, who is chairman of the ailing Hyundai Group, was hit by a 64 percent decline in the value of his holdings due to capital writedowns of debt-ridden Hyundai Engineering & Construction Co.

In another example, the value of shares held by Chey Tae-won, chairman of SK Corp. and son of SK Group's founder, Chey Jong-hyun, rose 19 percent.

by Kim Dong-sun