Hyundai Motor Group dismissed the rumors that Hyundai Steel and Hyundai Hysco, two of the conglomerate’s seven subsidiaries, will merge.
In their regulatory filing on the Korea Exchange, the two Hyundai units also denied the merger rumors, respectively. They said the news was “groundless.”
Stock prices of the two companies fluctuated during the trading session on Tuesday, hit by the speculation that steel producer Hyundai Steel and steel sheet products manufacturer Hyundai Hysco were pushing for business integration.
Hyundai Steel has been burdened with worsening financial status. The company posted a deficit in net income in the third quarter of 2011.
Amid the situation, Hyundai Motor vice chairman Chung Eui-sun took on a vice chairman post at Hyundai Steel last March.
Chung was appointed as vice chairman in charge of product quality at the non-automotive unit of the automotive group.
The heir apparent of Hyundai Motor Group chairman Chung Mong-koo now has four titles including Kia Motors president & CEO and Hyundai Mobis vice chairman.
About three years ago, Hyundai Motor Group promoted Chung to vice chairman of Hyundai Motor, a move thought to be the first step in paving the way for him to succeed the chairmanship held by his father. He is the only son of the senior Chung.
By Kim Yon-se (
kys@heraldcorp.com)
