GS Group’s fourth generation heir-apparent Huh Joon-hong, executive vice president of GS Caltex Corp., has become the largest shareholder of the group’s leather products manufacturing unit Samyang Tongsang.

The great-grandson of GS Group’s late founder Huh Man-jung bought 22,408 shares, 0.75 percent stake in Kospi-listed Samyang Tongsang on March 8 and another 15,104 shares, 0.50 percent stake on March 19, Samyang Tongsang announced in a disclosure Monday. The total purchase was worth 1.6 billion won ($1.5 million) based on the closing price of 43,950 won on Monday. His stock holding in Samyang Tongsang increased from 20 percent to 21.25 percent, more than the 20.0 percent stake held by his father and Samyang Tongsang Chairman Huh Nan-gak.

As of 1:14 p.m. on Wednesday, shares of Samyang Tongsang rose 0.34 percent to 44,750 won.

Chairman Huh and six other family members own a combined 52.05 percent stake in Samyang Tongsang, South Korea’s second largest original equipment manufacturer (OEM) of leather products such as baseball gloves. Huh Joon-hong also bought 70,000 shares of GS Holdings Corp. last year, making him hold the largest stake with 1.83 percent in the group’s holding firm among the fourth-generation owners.

Earlier this month, the group’s third-generation owners including Samyang Tongsang Chairman Huh, GS Caltex Chairman Huh Dong-soo and Samyang International Chairman Huh Gwang-soo who jointly owned a full stake in Sam Jong Development Co., the group’s real estate management unit, sold the stakes to their children. Owners of family empires opt stock trade for management succession in order to avoid high inheritance tax of maximum 50 percent and extra tax on the largest shareholder.

By Chung Woo-sung and Choi Mira

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]