Iljin Global Group chairman Lee Dong-seop completed his ownership succession through approximately 1 trillion won in stock cancellations across group companies between 2023 and 2024, following the death of founder Lee Sang-il in June 2023. The buyback strategy enabled Lee Dong-seop to consolidate control while providing liquidity for inheritance tax obligations. Iljin Global Group, primarily focused on automotive parts manufacturing, was designated as a conglomerate with over 5 trillion won in assets in May, marking its emergence as a mid-tier enterprise in South Korea's corporate landscape.
Lee Dong-seop Inherited Major Stakes Following Founder's Death in 2023
When founder Lee Sang-il passed away in June 2023, he held 20% of Iljin Global, 60% of Iljin Global Holdings, and 80% of Iljin Bearing. Lee Dong-seop, the eldest son among one son and three daughters, inherited the Iljin Global Holdings stake at 42%, with the remaining 16% distributed to other family members. Lee Dong-seop received all shares of Iljin Global and Iljin Bearing. Prior to the inheritance, Lee Dong-seop had established his control foundation through 30% stakes in Iljin (held via Iljin corporation) and 10% personal holdings in both Holdings and Global.
Iljin Bearing is held 80% by Lee Dong-seop and 20% by Hyundai Motor, a key customer. The three-shareholder structure of Iljin Global—30% Lee Dong-seop, 30% Iljin corporation, 40% Bearing Art—was established during this succession period.
Iljin Global Conducted 200 Billion Won Stock Buyback in March 2023
Iljin Global executed a 200 billion won stock repurchase in March 2023, shortly before the founder's death, canceling 62.4% of shares proportionally across its four shareholders. Lee Dong-seop received 20 billion won from this transaction based on his 10% stake at the time. This followed a previous 50 billion won buyback in March 2020.
The company financed the buyback using 143 billion won in cash assets from the 2019 spin-off, 459 billion won in operating profits earned between 2020-2022, and 262 billion won in dividends received from its Chinese production subsidiary (Tianjin Iljin Automobile System Co., Ltd.) in 2023 (133 billion won) and 2024 (129 billion won). The company repaid 150 billion won in short-term borrowings used for capital investment and stock cancellation by the following year.
Iljin Global Holdings Executed 793 Billion Won Stock Cancellation in November 2024
Iljin Global Holdings conducted a 793 billion won stock buyback in November 2024, targeting the entire 60% stake inherited from the founder. Lee Dong-seop received 555 billion won, while family members collected 238 billion won. The transaction price was 5.98 million won per share.
This restructuring transformed Holdings into a two-shareholder entity: Lee Dong-seop at 25% and Iljin corporation at 75%, effectively placing the company under Lee Dong-seop's personal control. Holdings funded the buyback entirely from internal resources, with cash assets declining from 1.079 trillion won at end-2023 to 470 billion won at end-2024.
Holdings Company Maintains Cash Reserves and Real Estate Assets
Iljin Global Holdings owns the Iljin Building in Samseong-dong, Gangnam-gu, Seoul, located within five minutes of Samseong Station (Line 2), Seolleung Station (Line 2), and Samseong Jungang Station (Line 9). The property spans 2,539 m² (768 pyeong) with one basement level and five floors above ground, with an estimated market value of 260-270 billion won.
The building houses Iljin Global Holdings, Iljin Global headquarters, and three other group companies (Iljin, Bearing Art, Iljin Bearing). Holdings generated 9.2 billion won in rental income in the previous year, including 6.9 billion won from Iljin Global, contributing to total revenue of 14.4 billion won.
Holdings maintained 485 billion won in cash assets (including short-term investment assets) at end-2019 following the spin-off, which grew to 1.079 trillion won by end-2023, primarily through returns on 851 billion won invested in short-term trading securities including domestic and foreign listed stocks.
Lee Dong-seop Controls 70% of Iljin Through Layered Ownership Structure
Lee Dong-seop currently holds 70% of Iljin corporation. The remaining 30% is divided among his mother Park Deok-soon (5%, age 85) and three sisters: Lee Yoon-jung (10%, age 58), Lee Yoon-sun (10%, age 56), and Lee Yoon-joo (5%, age 54). This ownership structure was first disclosed in May when Iljin Global Group was designated as a public disclosure conglomerate with over 5 trillion won in assets by the Fair Trade Commission.
The control chain flows: Lee Dong-seop (70%) → Iljin (100% and 60%) → Iljin Global Holdings and Iljin Global. Lee Dong-seop directly holds 80% of Iljin Bearing. Bearing Art remains outside his direct influence and is positioned as a vehicle for third-generation succession.
FAQ
What stock buybacks did Iljin Global Group conduct between 2023 and 2024?
Iljin Global executed a 200 billion won stock repurchase in March 2023, and Iljin Global Holdings conducted a 793 billion won stock cancellation in November 2024, totaling approximately 1 trillion won across both transactions.
How much did Lee Dong-seop receive from the Iljin Global Holdings stock buyback in November 2024?
Lee Dong-seop received 555 billion won from the November 2024 Iljin Global Holdings stock buyback, while other family members collected 238 billion won, based on the 60% founder stake that was repurchased at 5.98 million won per share.
