Sanhe Coatings, Vice President Kim Hyun-jung becomes the largest shareholder… Officially inherits management rights

The largest shareholder of Sanwa Coatings Industry has changed from the late Chairman Kim Jang-yeon to his eldest daughter, Vice President Kim Hyun-jung. Due to the changes brought about by the inheritance of shares, observations suggest that this may impact the overall management rights in the future.

On January 2nd, Sanwa Coatings Industry announced via a notice that Vice President Kim Hyun-jung inherited 22.76% of the shares from her father, former Chairman Kim Jang-yeon, on December 29th of last year. Including the 3.04% shares she previously held, her total shareholding reaches 25.80%. As a result, Vice President Kim, as the single largest shareholder, has solidified her position.

Vice President Kim has been with Sanwa Coatings Industry since 2019 and currently serves as the head of the Business Management Support Department. Given her previous role as a successor with increasing involvement in operations, this inheritance of shares is interpreted as a natural part of the transfer of management rights. It is expected that her authority will be further strengthened during the process of aligning the company’s long-term vision or business direction.

The inheritance tax procedures are also closely watched. According to current laws, the declaration and payment of inheritance tax must be completed within six months from the last day of the month in which the inheritance begins. Therefore, Vice President Kim needs to complete the relevant tax procedures by the end of June this year. Considering that the inheritance tax burden could be substantial, options such as stock pledge loans or installment payments may also be considered.

On the other hand, the second-largest shareholder of Sanwa Coatings Industry is the family of former Chairman Kim Fook-kyu, who was the first chairman and led the company during its early days alongside the family of the late Chairman Kim. Their combined shares amount to 20.1%. The balance of influence between the new largest shareholder and the other major shareholders may also change depending on future balancing or cooperative relationships.

This inheritance of shares goes beyond simple estate transfer and could serve as a direct opportunity to change the corporate governance structure. If Vice President Kim Hyun-jung fully steps into the operational forefront in the future, the current operational methods may also be adjusted, which is currently attracting close attention from the industry.