Hyundai Marine & Fire Insurance began its 'third-generation management' by appointing Jeong Kyung-seon, the eldest son of Chairman Chung Mong-yoon, as the Chief Sustainability Officer (CSO), a position newly created last year. There are assessments that improving his management capability is urgent since his entry into management is comparatively late compared to the third generation of other insurance company owners. Jeong's first test of management capability was Hyundai Marine & Fire Insurance's advancement into internet banking, but the project was temporarily put on hold without achieving results.
The fact that Jeong holds only 0.45% of Hyundai Marine & Fire Insurance's equity is a task that needs to be addressed for a succession of management rights. To directly purchase Hyundai Marine & Fire Insurance's equity, valued at 1.78 trillion won, or to receive an equity gift from Chairman Chung Mong-yoon, several hundred billion won in capital is necessary.
According to the insurance industry on the 10th, Jeong, born in 1986, officially joined Hyundai Marine & Fire Insurance as CSO in January last year, carrying the label of the youngest executive. Unlike other third-generation insurance company owners who start as a Head of Team or Vice Administrator and then gain practical experience before being promoted to an executive level, Jeong directly ascended to an executive position to receive management training. In line with this, Hyundai Marine & Fire Insurance promoted employees in the sustainability division under Jeong to executives.
Chairman Chung Mong-yoon is the largest shareholder, holding 22% of Hyundai Marine & Fire Insurance's equity. Hyundai Marine & Fire Insurance fully owns six companies, including My Financial Partner, Hyundai Investment & Securities Asset Management, and Hyundai Hi-Life Insurance Assessment. Among these, Hyundai Highcar and Hyundai C&R each hold half of the equity in Hyundai HDS, which in turn fully owns the equity in Adconnects. If Hyundai Marine & Fire Insurance is to take control, it will perfectly dominate all affiliated companies.
The insurance industry considers proving Jeong's management capabilities as the first step for a succession of management rights. There are lingering doubts about his management abilities since he primarily joined as an executive after external entrepreneurial activities. Jeong's first test, the establishment of the fourth internet bank, failed. A month after joining Hyundai Marine & Fire Insurance, Jeong formed the 'U-Bank' consortium, including Jobis & Villains, which operates Samjeomsam, as well as Lending, Travel Wallet, and Lunit, and challenged the fourth internet bank. Jeong led the digital strategy division responsible for related tasks. However, U-Bank did not apply for preliminary approval due to economic and political instability.
Jeong's delayed entry into management compared to third-generation owners of other insurance companies was due to his entrepreneurial activities. Jeong began his journey with ESG (environment, social, governance) management by founding the social enterprise Root Impact in 2012. Hyundai Marine & Fire Insurance created the CSO position for the first time in the insurance industry, which is linked to Jeong's career. Root Impact has been regarded as a place for young entrepreneurs for over ten years.
For Jeong Kyung-seon to inherit management rights, significant funds are required. Jeong currently holds only 0.45% of Hyundai Marine & Fire Insurance's equity. He must either purchase equity directly from the market or inherit it from Chairman Chung.
As of the previous day, Hyundai Marine & Fire Insurance’s market capitalization was estimated at 1.788 trillion won, making the value of Chairman Chung's 22% equity approximately 393.4 billion won. Assuming all of this is gifted, the gift tax, including the premium for major shareholders, is estimated to be around 230 billion won.
Chairman Chung Mong-yoon is the seventh son among the eight children (three daughters) of the late Chung Ju-young, former chairman of Hyundai Group. He served as CEO of Hyundai Marine & Fire Insurance from 1988 and separated the group during the financial crisis in 1999 due to increasing pressures for separation of finance and industry (the separation of financial and industrial capital). Even after that, there were criticisms of 'formal separation' as Hyundai Motor Group and Hyundai Group funneled corporate insurance business to it. Born in 1955, he is currently 70 years old, underscoring the need for a systematic management succession.