(MENAFN) The head of South Korea's antitrust regulator declared that Hyundai Motor Group has taken a step in the right direction, noting its latest plan to update its complicated governance structure through business spinoffs and mergers.
Korea Fair Trade Commission Chairman said: "Unexpectedly, Hyundai Motor Group opted to pay 1 trillion won (US$935 million) in transfer tax for future stock transactions of the group's large shareholders (in the process of simplifying the group's governance structure) instead of choosing a holding company structure that would help tighten the large shareholders' grip on the group."
In March, Hyundai Motor Group announced that auto parts supplier Hyundai Mobis Co. will spin off its local module and after-sales parts businesses and merge them with logistics affiliate Hyundai Glovis Co.
After the spinoff and merger, Hyundai Mobis plans to focus on further strengthening its core auto parts operations and R&D business, as well as on developing future growth drivers like autonomous vehicles and connected cars.
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