The Korea Herald


Hanjin Group’s shipping unit selling shares of affiliates

By Korea Herald

Published : Dec. 23, 2011 - 16:22

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Hanjin Shipping said Friday it sold off its entire stake in Hanjin Group’s de facto holding company Jungseok Enterprise Ltd., raising speculation over the shipping firm’s possible separation from the conglomerate.

Hanjin Shipping has been selling its shares in major affiliates of Hanjin Group such as Hanjin Travel, which holds a 22.26-percent stake in Jungseok Enterprise.

After selling a 14-percent stake in Hanjin Travel for 12 billion won earlier this month, Hanjin Shipping sold a 2.22-percent stake in Jungseok Enterprise for 6.59 billion won.

According to the fair trade law, if an affiliate of a large conglomerate wants to separate itself from the group, the two sides should hold less than 3 percent stakes in each other.

The shipper said, however, that the latest sale was aimed at allowing Hanjin Shipping Holdings to meet the requirements of a holding company and had nothing to do with its separation from Hanjin Group.

Unlisted real estate management firm Jungseok Enterprise is Hanjin Group’s holding company in effect.

Choi Eun-young, chairwoman and chief executive of Hanjin Shipping, is the wife of the late former chairman Cho Soo-ho, brother of Hanjin Group chairman Cho Yang-ho.

Choi took helm of the shipper after her husband died in 2006.

For Hanjin Shipping’s complete separation, Hanjin Group’s 27.41-percent stake in Hanjin Shipping Holdings must be sold. Hanjin Shipping Holdings holds a 36-percent stake in Hanjin Shipping. Hanjin Group is against the shipper’s separation.

Choi owns a mere 7.13-percent stake in Hanjin Shipping Holdings.

Hanjin Group has Korean Air, Jeju Air, Hanjin Transportation, Hanjin Travel and Jungseok Enterprise among others under its wing.

By Kim So-hyun (