(image: Yonhap)
SEOUL, Apr. 27 (Korea Bizwire) — Kim Sang-jo, the director of the Fair Trade Commission, in response to American activist fund Elliott Management Corp.’s call to restructure Hyundai Motor Group, stated that “following such demands would be going against antitrust laws.”
Kim also said that Elliott’s demands were “unfair” during the Asia Future Enterprise Forum 2018 held in Yeouido on Thursday.
Elliott recently released a proposal that formally opposed Hyundai’s planned restructuring. Instead, however, the American company called for the Korean carmaker to merge with Hyundai Mobis Co and to form a holding company overlooking the group.
Elliott also demanded the return of excess cash to shareholders as well as higher dividend payouts. If Hyundai Motor were to take on Elliott’s demands, the merger between Hyundai Motor and Hyundai Mobis would see Hyundai Card and Hyundai Capital become the subsidiaries of the merged corporation.
This would violate the Fair Trade Act that bans non-financial holding companies from owning financial affiliates.
Kevin Lee (kevinlee@koreabizwire.com)
