Cheil Group’s actions
[Chairman Han Jeong-hoon, the eldest son of the Chairman of the Cheil Group, has been inaugurated as the Vice Chairman of the Cheil Group and the CEO of Cheil Electronics. As a result, the structure of the successor of the Cheil Group, which has been attracting public attention, seems to be taking hold of the succession of Mr. Han Jeong-hoon.]
[At today’s press conference, Vice Chairman Han Jeong-hoon emphasized the social role of businesses and entrepreneurs. He said that receiving the love of the people was the biggest driving force behind becoming a global corporate group for the first time in 70 years since the founding of Cheil Group.
[Vice-Chairman Han will use a significant portion of the family’s wealth for various public interest projects. In particular, Chairman Han, who is the father, will donate most of the assets he owns to the foundation for these public works instead of passing it down to his children. said it would. Considering that Cheil Group Chairman Han’s stake exceeds at least 16 trillion won due to the recent boom in the stock market, the emergence of an unprecedented large public interest foundation is foretold.]
News that had a huge impact on Korean society began to be reported through the media.
[On the other hand, there is an announcement that Dasan Group, which forms two mountain ranges in the Korean business world together with Cheil Group, will soon fulfill a social role commensurate with the size of the group. The current Dasan Group Chairman is also said to be considering ways to use his property for public interest instead of inheriting it to his family. It is said that the scale is not inferior to that of Cheil Group’s large public service projects, but the announcement of the establishment of a public interest foundation instead of inheritance by Cheil Group and Dasan Group seems to have been influenced by the large amount of donations made by Chairman Kang Yu-jin of New York recently.]
As if to keep pace with Eugene’s donation announcement, the donations of Cheil Group and Dasan Group were announced.
And the bulletin boards of various communities began to overflow with opinions about the Jeil and Dasan groups.
– You’re donating 16 trillion won? Has the world turned upside down? Can’t you believe it?
– It’s all a trick. If you inherit an inheritance anyway, half of it is taken away by inheritance tax, but if you create a foundation and inherit it and your children run it, you can keep the control of the group without paying inheritance tax. Just not paying inheritance tax is a real treat.
– You’re going the Swedish way. Just like the Wallenbergs created a public foundation and ruled without paying inheritance tax.
– So you’re saying they’re doing it for their own benefit?
– There is no such aspect, but all profits generated from the property donated to the public interest foundation should be used for the public interest. So you can’t increase your fortune with it. where is that
Jeil and Dasan’s donation announcements were not entirely well-received.
Already, people were well aware that corporate donations are not just for philanthropy.
This is because it is true that the act of creating a public foundation by the owners of large corporations has been thoroughly used as a means of succession of management rights.
However, there was an atmosphere of acknowledgment that the Jeil and Dasan groups would actually contribute to society differently from other chaebol groups until now because of the astronomical amount of donations.
Since the amount that Jeil and Dasan Group pay out every year is astronomical right now, there were many opinions that there would be no use of billions of won each year as it is now and not paying any condolences.
– In that respect, Chairman Kang is really great. Didn’t you say that you would give out the entire amount in cash, not the company’s shares?
– That’s a real donation.
– right. It’s just an expedient to split the company’s shares and donate it with money and use it to maintain control.
The news of the launch of the Jeil and Dasan public foundations made Eugene’s donation activities stand out even more.
– Even in that way, you have to donate a lot. Rich people in the US and Europe also donate in that way, but we rarely do that, right?
– That’s right. Rich Koreans don’t know how to donate too much.
– Jeil is said to be 16 trillion, Dasan is said to be 9. What are other large companies doing?
And soon, chaebol groups other than Jeil and Dasan began to collect not-so-pretty glances.
– If Jeil and Dasan pay 10 trillion, don’t they have to give 4 trillion?
– Seongjin and Samho have to pay half of each.
– What tax is the donation? If Jeil and Dasan put it out, do you follow along?
– Donations are not tax. Still, it’s true that groups that say they’ll use the money they’ve earned so far to serve society look prettier.
– Jeil and Dasan received a lot of investment from Chairman Kang, so the stock price goes up and profits are good, but other large companies aren’t? Where can you afford to donate now?
– What are you talking about? Can’t you tell the difference between corporate activity and the company’s head taking a share?
– Until now, conglomerates have just sold out and wiped out all domestic industries. How much have they contributed to society? This donation from Dasan and Jeil is therefore welcome.
– That’s right. From now on, I will only use the best and most prolific ones.
– Anyway, even now, I only use the most or the most prolific things, but from now on, theaters and sweets will be the best or most prolific.
– You don’t make sweets?
“The media, community, and public opinion are very favorable. The effect that Cheil Group and Dasan Group will achieve with this announcement is expected to be significant. It is likely that market share will increase by at least a few percent in each segment.”
A vice president of Cheil Group was reporting the situation to his father with a proud face.
It was difficult to hide the spread of laughter because it was none other than him who led the donation incident.
“okay. After paying the inheritance tax anyway, it would be better to do it like this, since it is difficult to get even half of it.”
Korea’s public-interest foundation-related laws have considerably limited rights of donors compared to the United States and Europe, so the succession of management rights through public-interest foundations was not very meaningful.
Immediately, the donor and his or her heirs lose the right to dispose of the donated stock, and they cannot obtain dividend income. Only the exercise of voting rights is possible.
If Chairman Han had not already passed on many of his shares to his children, this task would not have been easy.
However, it was after Cheil Group had already used various expedients for the past 20 years to transfer the shares of its flagship company from one chairman to four children, or made it possible to manage it through an overseas asset management company.
The remaining stake of the chairman was barely over 6 trillion won two years ago.
Of course, 6 trillion won is a huge amount, but it is not enough to say that it is an absolute share.
However, after becoming a cooperative relationship with Eugene, the stock prices of all affiliates of Cheil Group soared, and the value of Chairman Han’s stake increased by 2.5 times.
Han Jeong-hoon, who has won the eyes of his father, Chairman Han, by inducing cooperation with Eugene, and finally stands tall as the winner of a long and long succession competition, again promoted the transfer of his father’s stake to a public foundation through a secret agreement with Eugene.
This is entirely advantageous to Han Jeong-hoon, one of his four children.
If he inherited his father’s property in the usual way, he would have to share it with his mother and three other brothers, but if he contributed to a public foundation, he would be able to control the stake as if he had the public foundation in his hands.
On the other hand, it is also meaningful to plant a positive image in the minds of Korean consumers through large donations.
“Over the past year, the share of all affiliates has shown tangible results. Not to mention the former, there is no place that has not increased its share in financial affiliates, fashion, and construction. Of course, Chairman Kang’s investment also played a big role, but it seems that we were able to use Chairman Kang’s friendly image as it is. On the one hand, the continued influx of investment over the next few years has also enabled the subsidiaries to operate much more aggressively.”
“okay. In 10 years like this, we will be able to declare our absolute superiority in all areas with certainty.”
As its name suggests, Cheil Group has the image that it will never be satisfied if it does not become Korea’s number one in all fields it has entered into.
Of course, the reality is that, except for a few major affiliates, they usually share the market, but at least they do not hesitate to compete with blood to maintain that image.
And through cooperation with Eugene, Jeil was able to fully enjoy such a bleeding competition.
This is because the astronomical investment of 500 trillion won that Eugene decided to offer backed it up.
Neither his son, Vice Chairman Han Jeong-hoon nor his father, Chairman Han, talked about market share, but did not mention the fact that the profitability of a number of affiliates was actually declining.
This is because it is the position of the shareholders who invested in the company, not the business owner, who considers the rate of return important, and the company’s share in the relevant field is much more important.
On the one hand, the most important thing for shareholders to consider is the future share price.
Now, the shareholders of Cheil Group were already fully satisfied with the fact that Eugene would continue to make a huge investment for several years to come.
Even if there is an immediate loss, it is irrelevant if Eugene’s investment boosts the stock price.
Against this background, Cheil Group has not stopped aggressively investing in all its affiliates.
While Eugene’s investment continued, at least in the Korean market, the mindset that all affiliates would secure an absolute advantage was passed on from the chairman to the lowest level employees.
“If cooperation with Tesla in the United States for electric vehicle production is established from next year, Cheil Motors will also show a completely different image from what it has been until now.”
Vice Chairman Han Jeong-hoon said with a meaningful smile.
“I will leave the electric vehicle entirely up to you. But don’t neglect traditional internal combustion engine cars.”
Chairman Han nodded his head with a satisfied face and said.
Daeyang Group was also disbanded and the biggest beneficiary was Cheil Group. The long-awaited merger of Daeyang Motors and Cheil Motors was approaching.
Chairman Han has invested a considerable amount of money for the growth of Cheil Motors, but he has not been able to achieve clear results for 20 years.
However, since becoming a cooperative relationship with Eugene, it has absorbed the ocean and has a 35% share in the Korean market, and is about to cooperate with Tesla, the most leading electric vehicle company.
Of course, Chairman Han still had doubts about electric vehicles.
Although the future is bright due to various discussions about environmental regulations, the fundamental weakness of electric vehicles is that it cannot be helped.
But this time, I decided to trust my son. This is Kang Yu-jin’s recommendation, not anyone else’s. At least so far, I haven’t lost anything in connection with him.
“You should never trust it perfectly.”
However, on the other hand, Chairman Han did not forget to warn him not to lose consciousness until the end.
It was a kind of instinctive sense of a seasoned entrepreneur.