This article was displayed on the ChosunBiz MoneyMove (MM) site at 8:28 a.m. on May 19, 2026.
KISWIRE Group has begun the "dismantling of circular shareholdings" it promised at the time of Kistron's initial public offering (IPO). As Kistron sold part of its KISWIRE equity directly to KISWIRE Chairman Hong Young-chul, the equity consolidation link between Kistron and KISWIRE has been partially weakened.
According to the Financial Supervisory Service's electronic disclosure system on the 19th, on the 14th Chairman Hong Young-chul purchased 473,080 shares of KISWIRE over the counter from Kistron. As a result, Hong's KISWIRE equity stake rose from 11.49% to 13.24%. Kistron's KISWIRE holdings fell from 3,325,436 shares to 2,852,356 shares, and its equity stake decreased from 12.32% to 10.56%. The per-share transaction price was 26,460 won, for a total transaction size of about 12.5 billion won.
The investment banking (IB) industry views Hong's KISWIRE equity purchase on the 14th as a follow-up step to dismantle circular shareholdings, as promised during Kistron's IPO. Instead of selling in the market the KISWIRE equity that Kistron was required to reduce, it transferred it to the owner personally, weakening the cross-shareholding link without undermining internal group control. A KISWIRE–Kistron official said, "This transaction is part of improving the circular shareholding structure," adding, "It is a plan we agreed to implement after Kistron's listing."
Major KISWIRE shareholders now include Vice Chairman Hong Seok-pyo, Kiswire Holdings, Chairman Hong Young-chul, and Kistron. Vice Chairman Hong is the largest shareholder with 20.07% of KISWIRE equity, Kiswire Holdings has 17.05%, Chairman Hong has 13.24% after this transaction, and Kistron holds 10.56%. The total equity stake of the largest shareholder group remained at 67.79%.
Kistron presented a plan to dismantle circular shareholdings during the KOSDAQ listing process in June last year. At that time, Hongduk Industry and KISWIRE held 23.89% and 6.53% of Kistron equity, respectively, while Kistron held 13.21% of KISWIRE equity. KISWIRE also held 32.04% of Hongduk Industry equity, creating a web-like ownership structure. During the Korea Exchange (KRX) review for listing, Kistron submitted a commitment to gradually sell down its KISWIRE equity holdings.
At the time of Kistron's IPO, KISWIRE and Hongduk Industry also offered their Kistron equity as secondary shares, in the same vein. KISWIRE sold all 866,120 Kistron shares it held as secondary shares, and Hongduk Industry disposed of 1,033,880 Kistron shares during the listing. Although there was criticism that the proportion of secondary shares was high, it is analyzed that the need to unwind cross-shareholding links among affiliates played a role.
Kistron shares held by the KISWIRE owner family were set so that sale restrictions would be lifted at 6, 12, and 18 months after listing. In January, the first locked-up shares were transacted, but it was an internal equity transfer within the owner family. There are predictions that a similar transaction will take place next month, when it reaches 12 months since listing. An industry official said, "Because it is a large volume, it will likely move as an over-the-counter transaction within the owner family to avoid burdening the market."
Some also say the dismantling of circular shareholdings is intertwined with clarifying the succession structure. During Kistron's IPO, Kistron Holdings, 60% owned by daughter Hong Hee-yeon, acquired Kistron equity. Currently, Hong Hee-yeon and Kistron Holdings hold 12% and 11.36% of Kistron equity, respectively. The explanation is that a structure is taking shape in which KISWIRE is centered on son Vice Chairman Hong Seok-pyo, while Kistron is aligned with Hong Hee-yeon's side.
However, this transaction alone does not completely resolve the equity relationship between Kistron and KISWIRE. Looking at Kistron's shareholder makeup, Chairman Hong Young-chul and Vice Chairman Hong Seok-pyo still hold 14.72% and 12.55% stakes, respectively. Since Kistron must gradually dispose of its KISWIRE equity as planned and presented to the Korea Exchange (KRX), how the remaining equity is handled will likely be a variable in reshaping governance. An IB industry official said, "It is still difficult to conclude that the succession structure has become clear, as Vice Chairman Hong Seok-pyo holds many Kistron shares."