SEOUL, KOREA - The polysilicone business jointly run by KCC and Hyundai Heavy Industries, both Hyundai Group companies, since 2008 has finally faced obstacles as the two see each other in the courtroom. As Hyundai Heavy withdrew from the solar power joint venture KAM by getting rid of its shareholdings without compensation to its investors, KCC struck it back with a lawsuit.
Since early this year, KAM has stopped operations, rendering KCC's polysilicone output virtually non-existence. Up until recently Hyundai Heavy and KCC have maintained an amicable relationship, especially given Chung Mong-jin, KCC chairman, is the eldest son of Chung Sang-young, the younger brother of the late Hyundai Group founder Chung Ju-young. The KCC chairman is also a cousin of Chung Mong-jun, the largest shareholder of Hyundai Heavy Industries.
KAM was established in 2008 as a 51:49 joint venture between Hyundai Heavy and KCC with an investment of 240 billion won. As the global downturn in the solar power market deepened, however, KAM recorded a loss of more than 200 billion won last year. In order to minimize losses, Hyundai Heavy took a charge of 120 billion won on June 7 and walked out of the business entirely without consulting its partner.
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