Published data on equity-backed loans of conglomerate-owning families
Business tracker Leaders Index said on Sept. 27 that Samsung Group is the South Korean business group whose owning family holds the most equity-backed loans.
“As of September 23, the family’s total loans amounted to 1,887.1 trillion won, with 20.2 percent of the shares of its subsidiaries provided as collateral,” he said, adding, “Hong Ra -hee, wife of late Samsung Group Chairman Lee Kun-hee, borrowed 850 billion won with 18% of his 117.3 million shares of Samsung Electronics, and Shilla Hotel Chairman Lee Bu- jin, borrowed 650 billion won with over nine million shares of Samsung Electronics and over 4.65 million shares of Samsung C&T.
He said Samsung Group is followed by SK, Hyundai Heavy Industries, Hankook Tire, GS and Celltrion Groups. In SK Group, equity-backed loans of 10 owning family members total 557.5 billion won, with 51.8 percent of their SK Group shares used as collateral. The loans include Chairman Chey Tae-won’s 406.5 billion won and the collateral is 26.5% of his 12,975,472 shares of SK Inc.
In the Hyundai Heavy Industries Group, Asan Foundation Chairman Chung Mong-joon and Korea Shipbuilding & Offshore Engineering Chairman Chung Ki-sun borrowed 321.5 billion won and 50 billion won by providing 45.1% of their shares in the group’s holding company.
“At least one owner’s family member had at least one equity-backed loan in 36 of the 66 owner-led groups, and Hyundai Motor Group was the only exception among the top 10 groups,” he explained. , continuing, “In total, the conglomerate owner’s equity-backed loans of the families total 5.3123 billion won, and the collateral is 29.6% of their total subsidiary equity.
He also pointed out that loans have increased significantly at Samsung, GS and Hyundai Heavy Industries in particular, this has to do with their corporate heritage and the restructuring of their governance, and more than half of the 36 groups are potentially exposed to Liquidation risks associated with the loans with most stock prices falling these days. .