The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    Revenge rises as key theme in K-dramas

  • 3

    Zebra captured after escaping from Seoul zoo

  • 5

    Sexual assaults by Korean diplomats continue despite zero-tolerance policy

  • 7

    Outback Steakhouse sees sales soar as it opens stores in large shopping malls

  • 9

    Samsung, SK avoid worst-case scenario as US 'guardrails' are less stringent than feared

  • 11

    Korean pension fund hit by overseas banking crisis

  • 13

    INTERVIEWKorean adoptee in Germany reunites with birth family after 42 years

  • 15

    Campaign launched to promote equal treatment for multicultural families

  • 17

    Investment banks compete for HMM sale advisory roles

  • 19

    INTERVIEWRetired FSC chief finds inspiration exploring Koreans' ancestral roots

  • 2

    Consumers choose to travel abroad over purchasing luxury goods

  • 4

    Korean firms balk at donating to fund compensating victims of Japan's forced labor

  • 6

    World water day

  • 8

    Main opposition leader indicted, faces calls to resign

  • 10

    Jeon Jong-seo discusses her first Hollywood role in 'Mona Lisa and Blood Moon'

  • 12

    Apple working on expanding Apple Pay service in Korea: senior executive

  • 14

    Childbirths sink 6% to fresh low in January

  • 16

    Sandstorm from China forecast to push up fine dust levels in Korea

  • 18

    Hyundai Heavy achieves world's first 200 million BHP milestone

  • 20

    Opposition leader indicted over development corruption scandal

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
Fri, March 24, 2023 | 05:55
Business
KCC plunges on HHI stock buying plan
Posted : 2014-11-21 18:26
Updated : 2014-11-21 18:52
Park Ji-won
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
By Park Ji-won

Shares of KCC, a construction materials company, closed lower on Friday, one day after the company said it will spend 300 billion won buying shares of Hyundai Heavy Industry (HHI).

KCC closed down by 4,000 won or 0.78 percent at 507,000 won.

However, Hyundai Heavy closed up 5.96 percent, or 7,000 won, at 124,500 won. The benchmark KOSPI closed up 6.80 points or 0.35 percent at 1,964.84.

In a public notice, KCC said it will buy 2.44 million shares of HHI for 300 billion won. The purchase will raise KCC's stake in HHI to 6.25 percent from 3.04 percent.

KCC said it sold its real estate assets to raise funds for investment in the shares of Hyundai Heavy.

It said the purchase of the shares was part of its efforts to raise efficiency in managing its holdings of equities.

"Buying HHI's stocks was part of our investment in managing our equity holdings more efficiently." KCC communication official Sung Ji-hyun said.

KCC and Hyundai Heavy are not affiliated. However, KCC Chairman & CEO Chung Mong-jin is a cousin of Chung Mong-joon, former lawmaker and the largest shareholder of Hyundai Heavy.

Some investors have cast suspicion over KCC's investment in Hyundai Heavy, which is suffering record losses amid a protracted business slump. They subsequently dumped KCC shares, believing the purchase of Hyundai Heavy shares might be intended to aid the shipbuilder.

Analysts said KCC's decision will negatively affect its share prices at least for the time being. Hyundai Heavy recorded more than 3 trillion won of operating losses in the nine months to September.

Samsung, Kiwoom and Korea Investment & Securities also revised down their target prices. Samsung cut its target to 671,000 won from 705,000 won, and Korea Investment to 680,000 won from 750,000 won.

Analysts are worried that KCC's move could increase its financial burden, amid concerns it may provide additional support to the shipbuilder and its other affiliates.

These analysts also expect KCC's move to have a negative impact on KCC stock sentiment.

"This purchase will work negatively for the stock as it raises concerns KCC will provide additional financial support to HHI," said Samsung Securities analyst Yun Sok-mo.

Korea Investment & Securities analyst Lee Kyung-ja said in a report that KCC's plan to buy HHI's shares is seen as a strategic move to bolster ties with Hyundai Heavy affiliates. KCC is heavily dependent on HHI affiliates for its sales.

"It is seen as KCC's strategic move to build a strong relationship with its partners' through share purchases," Lee said.

KCC owned 8.2 percent of HHI back in 2000, but has gradually cut its stake to 3 percent.

Lee said it remains uncertain from whom KCC will buy shares of Hyundai Heavy.

"If KCC would buy the shares directly from Hyundai Heavy or its affiliates, it could raise the suspicion that it is providing cash support to the shipbuilder," Lee said.

Emailjwpark@koreatimes.co.kr Article ListMore articles by this reporter
 
Top 10 Stories
1[INTERVIEW] Korean adoptee in Germany reunites with birth family after 42 years INTERVIEWKorean adoptee in Germany reunites with birth family after 42 years
2Will exempting foreign nannies from minimum wage boost Korea's birth rate? Will exempting foreign nannies from minimum wage boost Korea's birth rate?
3Retailers rush to adopt Apple Pay system Retailers rush to adopt Apple Pay system
4[INTERVIEW] Expert pitches Laotian rural reform to solve NK's chronic food shortages INTERVIEWExpert pitches Laotian rural reform to solve NK's chronic food shortages
5Daughter of North Korean dictator seen wearing $1,900 Dior jacket Daughter of North Korean dictator seen wearing $1,900 Dior jacket
6[INTERVIEW] Forbes-listed entrepreneur pursues partnerships with Samsung, LG, SK to help Ukraine INTERVIEWForbes-listed entrepreneur pursues partnerships with Samsung, LG, SK to help Ukraine
7Will Apple Pay launch boost local iPhone sales? Will Apple Pay launch boost local iPhone sales?
8[INTERVIEW] 'Welcome to world of art therapy' INTERVIEW'Welcome to world of art therapy'
9Indonesian students advise Korean bank on entering Indonesian market Indonesian students advise Korean bank on entering Indonesian market
10Korea to start mass production of KF-21 in 2024 Korea to start mass production of KF-21 in 2024
Top 5 Entertainment News
1Revenge rises as key theme in K-dramas Revenge rises as key theme in K-dramas
2Jeon Jong-seo discusses her first Hollywood role in 'Mona Lisa and Blood Moon' Jeon Jong-seo discusses her first Hollywood role in 'Mona Lisa and Blood Moon'
3SF9's Jaeyoon starts mandatory military service SF9's Jaeyoon starts mandatory military service
4Yoo Yeon-seok threatens to sue people spreading accusations about him Yoo Yeon-seok threatens to sue people spreading accusations about him
5Lee Som, Ahn Jae-hong to play married couple in Tving's new series Lee Som, Ahn Jae-hong to play married couple in Tving's new series
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group