Exclusive
Second Daughter of SM Group Chairman Resigns as Auditor for Major Affiliates

[비즈한국] Woo Ji-young, CEO of SM Holdings and second daughter of SM Group Chairman Woo Oh-hyun, has resigned from her position as auditor for several SM Group affiliates, drawing attention to the reasons behind her departure. Since last year, CEO Woo has been making notable moves through her private company, HN E&C (formerly Taecho E&C). This has led to speculation that she may be attempting to move away from SM Group to pursue independent management.

According to the corporate registry, CEO Woo Ji-young resigned as auditor for three SM Group affiliates—STX Construction019330, Samra, and Woobang013200—between October and November of last year. However, she retains her auditor positions at other SM Group affiliates, Dong-A Construction Industrial and Samwhan Corporation000360. Her influence at Samwhan Corporation cannot be ignored, as she holds a 21.71% stake in the company.

An SM Group official stated regarding the reason for Woo Ji-young's resignation, "She resigned to ensure management transparency because she was holding too many auditor positions at the affiliates."

Some, however, offer a different interpretation. The term for the auditor positions held by Woo Ji-young at STX Construction, Samra, and Woobang was set to expire in March 2026. She resigned abruptly with more than a year left in her term. Her father, Chairman Woo Oh-hyun, currently serves as a director for more than 10 SM Group affiliates. While it is claimed that CEO Woo resigned to ensure management transparency, Chairman Woo himself maintains multiple directorships across the group.

Woobang’s quarterly report explicitly states that CEO Woo Ji-young was dismissed. This has sparked speculation that there may be conflict between her and the SM Group. On the other hand, some analysts suggest she is preparing for independent management separate from the group. CEO Woo owns 100% of HN E&C. HN E&C has shown aggressive management moves, including the acquisition and merger of HN Inc (formerly Hyundai BS&C) last year and the establishment of its subsidiary, SM Holdings (formerly Taecho Holdings).

HN E&C even filed a lawsuit against an SM Group affiliate in 2023. HN E&C had entered into a contract to purchase real estate located in Seongjeong-dong, Cheonan, South Chungcheong Province, from SMAMC Investment & Loan (an SM Group affiliate) in 2022, but later canceled the deal. HN E&C filed a lawsuit demanding the return of the down payment made to SMAMC. While the court attempted mandatory mediation, SMAMC filed an objection, and the case is currently awaiting a first-instance ruling.

Some analyze that CEO Woo Ji-young may have resigned for reasons other than a conflict with SM Group, as her husband, Park Heung-jun, still holds executive positions within SM Group affiliates. Park serves as an internal director at STX Construction and Samra, the very companies from which Woo resigned. Notably, he was newly appointed as an internal director at Samra in March of this year. However, Park himself has also undergone changes in status, such as stepping down from his position as CEO of STX Construction to become a regular internal director in January of last year.