Hyundai Chairman's Boston Dynamics Stake Faces 'Self-Dealing' Scrutiny

Hyundai Motor Group Chairman Chung Euisun's personal acquisition of a significant stake in Boston Dynamics is drawing renewed criticism, with opponents arguing it potentially violates South Korean fair trade and commercial laws. The company maintains that the move strengthens responsible management, but concerns persist over the chairman personally holding 25% of a core affiliate projected to be worth up to 100 trillion won if publicly listed.

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At the United Nations, you have to deal with 193 member states. In FIFA, there are over 200 members [and] Gianni’s great record shows he knows how to manage.

The controversy centers on whether Chung's personal investment in Boston Dynamics constitutes an improper use of business opportunities, a practice prohibited by law. Hyundai Motor Group acquired 80% of Boston Dynamics from SoftBank in December 2020 and had a put option for the remaining 20%. This option was exercised by SoftBank, leading Hyundai to decide on acquiring the remaining shares, making Boston Dynamics a wholly-owned subsidiary. Mirae Asset Securities estimates Boston Dynamics' market value at up to 117 trillion won.

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At the United Nations, you have to deal with 193 member states. In FIFA, there are over 200 members [and] Gianni’s great record shows he knows how to manage.

Under the proposed shareholding structure, HMG Global (Hyundai Motor Company, Kia, Hyundai Mobis) would hold 62.5%, Hyundai Glovis 12.5%, and Chung Euisun personally 25%. Chung's current estimated stake is 22.6%. The significant personal stake is attributed to three group affiliates allowing him to participate in the initial acquisition. This decision has been questioned, as Chung holds executive positions within these very companies and is the largest shareholder of Hyundai Glovis.

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At the United Nations, you have to deal with 193 member states. In FIFA, there are over 200 members [and] Gianni’s great record shows he knows how to manage.

Economic reform groups have urged Chung to abandon the additional stake acquisition, warning that it would further inflame the controversy. The Korea Corporate Governance Forum also called for HMG Global to acquire the remaining shares instead of Chung personally, citing ongoing debates about potential violations of fair trade and commercial laws. The situation is further complicated by speculation that Chung may sell his Boston Dynamics shares to fund his succession plans, particularly his need to acquire shares in Hyundai Mobis, which would require trillions of won. Hyundai Glovis's substantial involvement since the initial acquisition and Chung's significant shareholding in it are also viewed with suspicion, echoing past criticisms of wealth transfer to the chairman's family through affiliated companies.

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At the United Nations, you have to deal with 193 member states. In FIFA, there are over 200 members [and] Gianni’s great record shows he knows how to manage.