Hyundai Motor Group headquarters in Seoul / Korea Times file

By Yi Whan-woo

The combined sales of a 10 percent stake in Hyundai Glovis this week by Chung Euisun and Chung Mong-koo, the incumbent and former chairmen of Hyundai Motor Group, is fueling speculation that the family-owned conglomerate is accelerating hereditary succession through governance restructuring.

The sales are seen as a bid to streamline a complex chain of cross-holding governance, a crucial step to address the issue of such a structure that does not comply with Fair Trade Commission (FTC) standards.

The sale also comes as Hyundai Engineering, the plant engineering arm of the automotive group, awaits the initial public offering (IPO) this year.

The IPO, along with sales of Hyundai Mobis stakes, is believed to help Chung Euisun to secure cash and tighten management control, especially by buying Hyundai Mobis which is at the center of the restructuring.

According to Hyundai Mobis, Chung Euisun unloaded his 3.29 percent stake and Chung Mong-koo, the former's father and honorary chairman of the group, sold a 6.71 percent interest in Hyundai Glovis at 163,000 won ($136) per share through block trading to global private equity firm The Carlyle Group.

The deal leaves the senior Chung with no stake in Glovis any longer, while making the junior Chung, the largest shareholder with a 19.99 percent stake.

The Carlyle Group will remain as the third-largest shareholder in Hyundai Glovis.

Some industry sources viewed the father and the son may later try to purchase stakes in Hyundai Mobis.

Hyundai Mobis has a 21.4 percent stake in Hyundai Motor, which has a 33.9 percent stake in Kia, which also has a 17.3 percent stake in Hyundai Mobis.

This means their shares are cross held and inter-company controls are intertwined with one another.

Chung holds a 0.32 percent stake in Hyundai Mobis, a 2.62 percent stake in Hyundai Motor and a 1.74 percent stake in Kia.