By Yoon Ja-young
Staff Reporter

Hyundai Logistics acquired a 4.14 percent stake in Hyundai Elevator, becoming the biggest shareholder of the elevator company in the group.

According to the Financial Supervisory Service (FSS), the company held a board of directors' meeting Wednesday, and determined to acquire 295,000 shares or 4.14 percent stake in Hyundai Elevator from Kim Moon-hee. Kim is mother of Hyundai Group Chairwoman Hyun Jeong-eun.

Kim was the largest single shareholder of the elevator company with a 14.88 percent stake, but the transaction made Hyundai Logistics rise as the largest shareholder among the Hyundai Group family, with its stake in the elevator firm rising to 16.41 percent.

The shares cost 24.2 billion won, and the logistics company got 15 billion won in loans from banks.

The transaction, which bolstered the circular shareholding system among group subsidiaries, is estimated to aim at strengthening Hyun's managerial control over the group through Hyundai Logistics.

Hyundai Group has 10 subsidiaries, including Hyundai Elevator, Hyundai Logistics, Hyundai Securities, Hyundai Merchant Marine, Hyundai U&I and Hyundai Asan.

They are linked through a circular shareholding system. Hyundai Elevator has an 18.89 percent stake in Hyundai Merchant Marine. The marine company, meanwhile, holds a 47.15 percent stake in Hyundai Logistics, a 22.17 percent stake in Hyundai Securities and a 36.86 percent stake in Hyundai Asan. Hyundai Logistics is the largest shareholder of Hyundai Elevator.

The logistics firm recently became a base camp for Hyun to increase managerial control over group subsidiaries. It first acquired a 12.27 percent stake in Hyundai Elevator in July 2006. A few months later, Hyun acquired a stake in the logistics company. Hyun currently holds a 12.61 percent stake in Hyundai Logistics, being the third largest shareholder of the logistics company. Hence, Hyun can exercise managerial control over group subsidiaries through Hyundai Logistics.

Hyundai Elevator's main products include elevators, escalators, moving walkways, and auto parking systems.

chizpizza@koreatimes.co.kr