By Ryu Jin
Staff Reporter
Core business groups of the former ``Hyundai Empire'' are dreaming of reviving the glorious past, as they try to regain control of the units cut off from the family tree a decade ago amid the financial plight.
Main targets of the recovery, according to sources Monday, are Hyundai Engineering & Construction, Hynix Semiconductor, Hyundai Corporation and Hyundai Oilbank, which could be put on the merger and acquisition (M&A) list sooner or later.
A signal for the ``family reunion'' was sent from Halla Engineering & Construction last week. Halla E&C signed a deal to buy back Mando, the top South Korean auto parts company sold to a foreign consortium in the aftermath of the 1997-98 financial crisis.
Halla E&C, set up in 1962 by the late Chung In-yung, a younger brother of Hyundai Group's late founder Chung Ju-yung, formed a consortium with Kumgang Korea Chemical (KCC) ― also a former Hyundai family member ― for the recovery.
``Hyundai family's support, including KCC's participation in the consortium, greatly contributed to the deal,'' a Halla E&C official said, indicating that a ``tacit agreement'' by Hyundai-Kia Automotive Group was of much help for the deal.
Leading the moves are second-generation owners of the pan-Hyundai family, who have ``Mong'' in the middle of their names, including Hyundai-Kia Automotive Group Chairman Chung Mong-koo.
Chung, 70, who is the eldest of the second-generation owners, is said to have consulted Halla E&C Chairman Chung Mong-won since late last year for cooperation ahead of the takeover of Mando, according to sources.
Another unusual sign is the recent return of the large cornerstone of the Hyundai group. It had been removed from its original place in front of the company building in Gye-dong, downtown Seoul, over the past five years.
Hyundai Group sold the headquarters to Hyundai-Kia Automotive Group in 2002 due to liquidity problems. Chung Mong-koo, who had a strong will for separation at the time, instructed his aides to take the symbol stone out and store it in a warehouse.
Rumormongers viewed the return as a signal for the family reunion. Interestingly, the name of the president-elect, Lee Myung-bak, is inscribed on the back of the stone. He served as the chief executive of Hyundai H&C before entering the political arena.
Also drawing attention is Chung Mong-joon, the largest shareholder of Hyundai Heavy Industries. A five-term lawmaker and a big shot in the country's football world, he joined the Grand National Party last year to help Lee win the Dec. 19 presidential race.
If the Mando deal was the start of the reconstruction of the former Hyundai Empire, industry watchers say, the completion would be the takeover of Hynix Semiconductor and Hyundai E&C.
Hyundai Heavy Industries, Hyundai Department Store and KCC have so far been in competition with Hyundai Group over the ownership of Hyundai Merchant Marine (HMM).
The key to the takeover lies in Hyundai E&C, which holds an 8.3-percent share of HMM. If the Chung family succeeds in its takeover, it could also have the control of the right of management of Hyundai Group.
Hyundai Group is led by Chairwoman Hyun Jeong-eun, the widow of Chung Mong-hun, the Hyundai founder’s fifth son. Chung Mong-joon of Hyundai Heavy Industries, the world’s largest shipbuilder, engaged in a muddy fight with her over HMM in 2006.
Hyundai Heavy Industries has constantly denied the possibility since the spat between Chung and Hyun. Hyundai-Kia Automotive Group has also shown indifference, at least outwardly. Industry sources, however, still leave the possibility open.
``In the past, the units were within the same fence of one conglomerate, set up by the late founder, Chung,'' said an executive from a Hyundai family-controlled company. ``It is natural that his descendants would try to regain the units, isn't it?''