What’s in a name? When it’s ‘Hyundai,’ a lot
A new name proving it is part of one of the nation’s leading conglomerates helped boost shares of Hyundai IB Securities yesterday. But the name could be a spoiler in days to come, as the firm may face a legal challenge from Hyundai’s other brokerage arm.Shares of Hyundai IB, formerly Shinheung Securities, rose 1,350 won ($1.40), or 5.2 percent, to 27,250 won.
Analysts attributed the boost to expectations that the brokerage will post improved business performances as a Hyundai family member than it did as Shinheung. Hyundai Motor, Korea’s largest automaker, signed a contract last month to buy a controlling 29.76 percent stake in Shinheung Securities. Shinheung was reborn as Hyundai IB at Shinheung’s board of the directors meeting on Wednesday.
“We decided to use English [IB] as part of the company’s name in order to prevent its confusion with Hyundai Securities,” said a Hyundai IB Securities official, who requested anonymity.
Hyundai Securities objected to Hyundai IB Securities inclusion of “Hyundai” in its name.
“The name Hyundai is considered ours within the brokerage industry,” Hyundai Securities said in a statement yesterday. Hyundai Securities said it is considering measures to protect its brand.
“Some local brokerages are adding IB to their existing name as they strengthen their IB [Investment Banking] business,” said an official of Hyundai Securities, on condition of anonymity. “So we are concerned that people, in particular foreigners, might think Hyundai IB Securities is the same as Hyundai Securities.”
Hyundai Securities fell 3.2 percent yesterday.
By Choi Hyun-chul JoongAng Ilbo [joe@joongang.co.kr]
with the Korea JoongAng Daily
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