This article was posted on the ChosunBiz MoneyMove (MM) site at 10:26 a.m. on Dec. 16, 2025.
Kistron, the country's only producer of bimetal wire with copper and iron cladding, revealed a blueprint that hints at a future succession structure as it resolves the circular shareholding it promised at the time of its listing. It took the first step toward transferring one of the group's prized corporations, Kistron, to a holding company owned by the chairman's daughter.
According to the Financial Supervisory Service electronic disclosure system on the 16th, Kistron Holdings bought 1,066,625 Kistron shares held by Hongdeok Industry in an off-market purchase. The price per share was 4,565 won based on the closing price on the 11th, totaling 4.8 billion won. With this transaction, Kistron Holdings secured 5.98% equity, surpassing the stake held by the former parent company KISWIRE Holdings.
With this transaction, Kistron appears set to move out from under the influence of KISWIRE Group's parent company, KISWIRE Holdings, and come under the control of Kistron Holdings. The investment banking industry views this as a move to transfer Kistron, one of the group's key corporations, to Hong Heeyeon, the daughter of KISWIRE Group Chairman Hong Youngcheol.
Currently, KISWIRE Group is preparing succession groundwork led by Vice Chairman Hong Seokpyo, the son of Chairman Hong Youngcheol. Vice Chairman Hong has already secured half of the parent company KISWIRE Holdings' equity and has also accumulated large stakes in major affiliates.
Meanwhile, Kistron Holdings lists Hong Heeyeon, the daughter of Chairman Hong Youngcheol, as its largest shareholder with 60% equity. The second-largest shareholder is Chairman Hong, who holds the remaining 40% equity. Although it converted to a corporation in 2023 through an in-kind contribution, it is effectively a private company of the owner family. The name includes "Holdings," but it had been insignificant until now and has effectively gained its first affiliate through Kistron.
A source in the investment banking industry said, "It is possible to foresee a process in which Kistron becomes independent from KISWIRE Group and is succeeded to the daughter."
However, looking at Kistron's shareholder composition, Chairman Hong Youngcheol and Vice Chairman Hong Seokpyo still each hold more than 20% equity, exerting substantial influence. For Hong Heeyeon to fully succeed Kistron, she would need to receive a gift of Chairman Hong Youngcheol's equity.
This governance restructuring began with resolving the circular shareholding link Kistron pledged to the Korea Exchange (KRX) when it listed in June. Hongdeok Industry and KISWIRE held 23.89% and 6.53% of Kistron's equity, respectively, and Kistron also held 13.21% of KISWIRE. KISWIRE in turn held 32.04% of Hongdeok Industry, creating a web-like intertwined equity structure.
KISWIRE Group launched a process to eliminate circular shareholdings in the wake of Kistron's IPO. Of the 3,167,130 Kistron shares Hongdeok Industry held, 1,033,880 shares, and of the 866,120 Kistron shares KISWIRE held were disposed of as sale of existing shares. Kistron plans to gradually dispose of the Hongdeok Industry and KISWIRE shares it holds and clean up its holdings. The remaining 2,133,250 shares held by Hongdeok Industry are scheduled for disposal six months and 12 months after the mandatory holding periods end. The stake Kistron Holdings secured this time was subject to a six-month mandatory holding period.
Kistron's and KISWIRE Group's governance will likely be determined by the disposal of the remaining Hongdeok Industry shares and any stock gifts. Even if a plan is finalized to pass KISWIRE Group to the son and Kistron to the daughter, analysts say disputes could still arise given the current equity structure. The older brother's control of the group is overwhelmingly greater. Earlier this year, Kolmar Group tried to pass Kolmar Holdings and Kolmar BNH to its son and daughter respectively, but disputes arose in the process and legal battles are now underway.