( 2 nd LD ) Hyundai withdraws overhaul plan on opposition ( ATTN : CHANGES headline and lead ; ADDS details throughout ) SEOUL , May 21 ( Yonhap ) -- Hyundai Motor Group on Monday withdrew a key spinoff merger plan in a setback to its corporate restructuring amid stepped - up opposition campaigns by some investors . The decision comes as global hedge fund Elliott and proxy advisers such as Institutional Shareholder Services ( ISS ) continued to take issue with the carmaker ' s proposed corporate governance overhaul plan , citing that the " unfair " swap ratio of stocks between two affiliates of the conglomerate will hurt shareholders ' value . "( In a new plan ) we will fully reflect the views and advice that our shareholders and investors have suggested since the governance restructuring plan was announced ( in March ) . We have realized that there was a lack of communication with our shareholders and the markets ( over the plan ) , " Hyundai Motor Co . Vice Chairman Chung Eui - sun said in a statement . The company strongly believes that no restructuring of its business or corporate governance can be accomplished without the full trust and support of its shareholders , he said . As for the new plan , Hyundai said it has not yet decided whether to fully revise the existing proposal or when to announce it . The carmaker said it will come up with a thoroughly improved plan . Under the corporate overhaul plan released in March , the group ' s auto parts supplier , Hyundai Mobis Co . , was slated to spin off its domestic module and after - sales parts businesses and merge them with logistics affiliate Hyundai Glovis Co . Hyundai Mobis was set to focus on beefing up its core auto parts operations and research and development activities , as well as on developing future growth drivers , such as autonomous vehicles and connected cars , after the streamlining process . The corporate restructuring plan was scheduled to be put to a vote by Mobis and Glovis shareholders on May 29 . In the face of growing opposition from investors , the two companies separately held a board meeting on Monday to cancel the overhaul program , the statement said . Foreigners currently own about 48 percent of Mobis , the group ' s de facto holding company . In April , Korea Fair Trade Commission Chairman Kim Sang - jo cited Hyundai Motor ' s case as " the most desirable " one for local conglomerates that are required to restructure their circular cross - shareholding structures , which are largely aimed at strengthening family control . Elliott and proxy advisors , such as ISS and Glass Lewis , argued that Mobis ' shareholders won ' t benefit from the plan , as Mobis is transferring profitable businesses to Glovis which is controlled by Chung Eui - sun . He held the biggest 23 . 29 percent stake in Glovis at the end of 2017 . They have also speculated that the plan to streamline Hyundai ' s ownership structure is meant to help the succession of management rights from father Chung Mong - koo , chairman of the world ' s fifth - biggest carmaker , to his son . This image shows the corporate logos of Hyundai Motor Co . and Hyundai Mobis . ( Yonhap ) kyongae . choi @ yna . co . kr ( END )