Exclusive
'Iljin Group Scion' Former Iljin Materials CEO Huh Jae-myung Resigns as Executive of Private Investment Firm

[비즈한국] It has been confirmed that Huh Jae-myung (54), former CEO of Iljin Materials (currently Lotte Energy Materials020150) and the second son of Iljin Group Chairman Huh Jin-kyu (85), has resigned from his position as representative of the investment firm Company H. After selling Iljin Materials to Lotte Group in 2022, Huh left Iljin Group. He subsequently established a company called Company H in February 2023 to embark on independent investment activities.

Although Iljin Materials was classified as an affiliate of Iljin Group, it functioned strongly as Huh Jae-myung’s personal company. This is because he was the largest shareholder, holding a 53.30% stake in Iljin Materials. His father, Chairman Huh Jin-kyu, held only a 0.03% stake in the company, and no other Iljin Group affiliates held shares in Iljin Materials.

In 2022, Huh Jae-myung sold his entire stake in Iljin Materials to Lotte Group for 2.7 trillion won. He then established the investment firm Company H in February 2023 to begin independent management activities. Having secured over 2 trillion won in cash from the sale of Iljin Materials, he had substantial capital for investment. Huh was the sole executive officer of Company H. As a limited liability company, the executive officer of Company H holds rights and responsibilities similar to those of an executive director in a joint-stock company.

Company H showed its own presence last July by entering into a strategic partnership and signing a business agreement with NH Investment & Securities005940. At the time, the two companies agreed to cooperate by jointly participating in investment banking (IB) deals, such as acquisition financing and project financing. Former CEO Huh Jae-myung had also stated, "I have high expectations for collaborating with NH Investment & Securities, a leader in the IB business."

However, BizHankook's investigation revealed that Huh Jae-myung resigned as an executive officer of Company H this past May. An individual surnamed Im has been appointed as his successor. Company H did not disclose the reason for Huh's resignation.

Some in the business community have raised the possibility of Huh returning to Iljin Group. Although he left the group, he still holds significant stakes in Iljin Group affiliates, including 14.64% of Iljin Display020760 and 17.74% of Iljin Steel.

However, it is reported that Huh Jae-myung does not have much contact with his older brother, Iljin Holdings015860 Vice Chairman Huh Jung-seok (56). There are rumors that he has distanced himself from his family. In business circles, there was gossip that Huh did not report the sale of Iljin Materials to his father, Chairman Huh Jin-kyu, at the time. An official from Iljin Group responded that they "do not know" anything regarding Huh's recent moves.