When interest is included, it is expected to reach a record high of 200 billion
Hyundai Group Chairman Hyun Jeong-eun (68) lost a lawsuit once morest Schindler Group, a multinational elevator company and the second largest shareholder of Hyundai Elevator, and had to pay regarding 200 billion won, including interest. It is known that this is the largest amount of compensation in the history of a shareholder representative lawsuit.
The 3rd Division of the Supreme Court (Presiding Judge Noh Jeong-hee) decided on the 30th that Schindler should pay 170 billion won to Hyundai Elevator in a damages suit filed by Schindler once morest the current chairman and former Hyundai Elevator CEO Han Sang-ho (67). Confirmed. Considering that the lawsuit was filed in 2014, the total compensation including interest is expected to be around 200 billion won.
Hyundai Elevator signed a derivatives contract guaranteeing an annual return of 5.4-7.5% in exchange for its stake in Hyundai Merchant Marine between 2006 and 2013 to defend its management rights. Schindler, who owns a 15.5% stake in Hyundai Elevator, filed a 700 billion won lawsuit once morest Hyundai Elevator management in 2014, claiming that Hyundai Merchant Marine suffered losses from falling stock prices.
The first trial did not accept Schindler’s claim, believing that the derivatives contract signed by Hyundai Elevator was a normal management act of Chairman Hyun. However, the second trial ruled that Hyundai Elevator suffered damages due to derivative contracts and that Chairman Hyun should compensate 170 billion won, and the Supreme Court also made the same judgment as the lower court.
Hyundai Group said it had “no official position” on the Supreme Court ruling. There are observations that even if Hyun pays the remaining amount, there will not be a big problem with management rights. Chairman Hyun holds a 91.3% stake in Hyundai Networks and a 28.57% stake in Hyundai Movex. Hyundai Network owns a 10.61% stake in Hyundai Elevator, and Chairman Hyun also owns a 7.8% stake in Hyundai Elevator. In the business world, it is believed that there is a possibility that Hyun will receive a loan using stocks as collateral, liquidate assets, or sell some of them.
Reporter Jahyun Kim zion37@donga.com
Reporter Lee Kun-hyeok gun@donga.com