Seoul, South Korea – Hyundai Department Store Group, a leading retail conglomerate in South Korea, announced today that its holding company, Hyundai G&F Holdings, will acquire an additional 1.8% stake in Hyundai Department Store, while Hyundai Home Shopping will purchase a 1.5% stake in Hanssem.

The group revealed that this strategic move is aimed at enhancing the corporate value of its subsidiaries. Hyundai G&F Holdings plans to purchase approximately 400,000 shares of Hyundai Department Store on the open market, increasing its ownership from 31.5% to 33.3%. Similarly, Hyundai Home Shopping will acquire around 330,000 shares of Hanssem, boosting its stake from 39.0% to 40.5%.

A spokesperson for Hyundai Department Store Group stated, "This acquisition is designed to enhance the corporate value of our undervalued core subsidiaries and strengthen our commitment to responsible management as the majority shareholder. The actual share transactions will commence on [Date], one month after the public announcement, in compliance with regulatory requirements."

Last year, Hyundai G&F Holdings unveiled a value enhancement plan that emphasized increasing its control over high-performing subsidiaries to expand dividend income. In line with this strategy, Hyundai Home Shopping will also repurchase approximately 240,000 of its own shares to enhance shareholder value.

The group further clarified that these recent decisions to increase stakes in core subsidiaries and repurchase shares are additional measures that complement the value enhancement plan announced in November last year. After careful consideration and discussions, the group determined that these actions would be most effective in maximizing the value of each individual company.

"We believe that the market has significantly undervalued the intrinsic value of our department store, home shopping, and fashion businesses, considering their market position, brand competitiveness, and future growth potential. This is why we have decided to increase our stakes and repurchase shares," the spokesperson explained. "We will continue to explore various value enhancement strategies for our core subsidiaries if we determine that they are still being undervalued."

By bolstering its holdings in key subsidiaries and implementing share repurchase programs, Hyundai Department Store Group aims to strengthen its financial position, enhance shareholder value, and solidify its market leadership.