This article was displayed on the ChosunBiz MoneyMove (MM) site at 1:31 p.m. on Nov. 6, 2025.
Shares of Hyundai Motor Group affiliates are soaring, but INNOCEAN, which is responsible for the group's advertising business, has failed to escape a slump. Along with weak conditions in the advertising industry, concerns about an overhang (a large potential sell volume) have grown as a major investor that held equity for the past 10 years accepted losses and moved to sell a large stake.
According to the Financial Supervisory Service's electronic disclosure system, INNOCEAN's major shareholder "NHPEA4 Highlight Holdings (NHPEA)" moved to sell equity for the sixth time this year. Starting with a block deal after-hours on Jan. 10 this year, it has continued to dispose of equity through Oct. 24. As a result, NHPEA's equity ratio fell from 18% to 12.5%. NHPEA is a special purpose company (SPC) established by Morgan Stanley PE for investment purposes.
Morgan Stanley PE formed a consortium in 2014 with Standard Chartered Bank (SC Bank) and others, acquired 20% equity in INNOCEAN, and has held it to date. The institutions that invested alongside it mostly unwound their equity after the lock-up period ended, but Morgan Stanley PE kept the equity acquired at the time through NHPEA unchanged until early this year. The only change in the equity ratio over the past 10 years was a decrease to 18% due to dilution from new share issuance at the time of listing.
However, after more than 10 years, even NHPEA moved to sell equity, and overhang fears appear to be dragging the share price down further. A person in the investment industry said, "Morgan Stanley's basic investment period is 10 years, and it is known to adopt a long-term investment as a basic strategy," adding, "It appears to have decided to accept losses and sell equity, judging that a rebound would be difficult even if it held on longer."
INNOCEAN's share price has fallen to about half of what it was when NHPEA first invested. In 2014, when the equity was unlisted, it was valued at 200 billion won, but based on the current share price, it is only about 120 billion won. INNOCEAN's share price topped 40,000 won early after listing, but continued weakness has left it in the 17,000-won range now.
Industry watchers explain that NHPEA's move to unwind equity after 10 years at a loss is due to a "10-year investment cycle." Looking at Morgan Stanley PE's prior investment cases, it appears INNOCEAN also chose to cut losses after a 10-year long-term investment.
Previously, Morgan Stanley PE acquired the franchise "Nolboo," which operates Nolboo Budae Jjigae and Nolboo Bossam Jokbal, in 2011 but cut its losses in 2022, 11 years later. Morgan Stanley PE acquired 100% equity in Nolboo for 111.4 billion won at the time, but after the COVID-19 crisis sold about half of the equity for about 20 billion won.
In 2014, Morgan Stanley PE also acquired MSS Holdings, which owned Ssangyong C&B and Monalisa, and sold it last year, 10 years later, to Asia Pulp & Paper (APP), an Indonesian paper company. While there are corporations that Morgan Stanley PE has invested in for more than 10 years, in INNOCEAN's case it appears to have decided to sell equity because expectations for a share price rise are not high.
Market participants expect NHPEA's remaining equity to continue coming to market. Considering INNOCEAN's unique governance structure, the analysis is that selling into the market rather than handing over the entire equity to another investor was the predetermined course.
Currently, INNOCEAN's largest shareholder is adviser Chung Sung-yi with 17.69%, and when including special affiliates such as Hyundai Motor Group Chairman Chung Eui-sun and the Hyundai Motor Chung Mong-koo Foundation, friendly equity amounts to 28.75%. NHPEA is the second-largest shareholder. If NHPEA transfers its equity to another investor, it would inevitably affect INNOCEAN's management control.
Initially, INNOCEAN began as a private company of the Hyundai Motor Group owner family. But the owner family sold part of its equity to raise succession funds and avoid regulations on the funneling of internal contracts. At the time, Morgan Stanley stepped in as an ally of the owner family and acquired the equity.