SPC Group Restructures Governance as Heir Takes Loan Ahead of Succession Move
Creatrip Team
3 months ago
SPC Group is accelerating a governance restructuring that could speed family succession after a string of scandals and safety incidents. Chairman Hur Young-in plans to split Paris Croissant (operator of Paris Baguette) into business and investment units and create a holding company structure; this would simplify share exchanges to transfer control to his sons. Recently, younger son Hur Hee-soo pledged 280,000 SPC Samlip shares as collateral to borrow 8.5 billion KRW, signaling fund-raising ahead of planned moves. SPC Samlip shares are expected to be a key tool in share-swap strategies because Hur Young-in and his two sons hold differing stakes (Young-in 4.64%, Jin-soo 16.31%, Hee-soo 11.94%). The reorganization aims to stabilize governance amid legal battles over alleged union interference, repeated workplace fatalities, and franchisee disputes, while enabling faster decision-making and large investments for digital/global shifts. Analysts say the split could also formalize a de facto third-generation (3rd-gen) leadership, possibly separating sibling business domains, though stock market rules for the listed SPC Samlip and ongoing regulatory probes (including Fair Trade and tax investigations) could affect timing and methods.
