Jung Chang-sun, Chairman of Joongheung, "Not a Single Penny of Daewoo Construction Money Will Go Outside"

Press Conference in Gwangju "Decided to Acquire to Save Daewoo Construction"
"Separate Management Without Integration... No Changes in Organization or Personnel"

On the morning of the 14th, Jung Chang-sun, Chairman of the Jungheung Group, is holding a press conference at the Gwangju Chamber of Commerce and Industry in Seo-gu, Gwangju.

Jung Chang-sun, chairman of Joongheung Group, said on the 14th regarding the acquisition of Daewoo Engineering & Construction, "I decided to acquire the company to save it and plan to grow Daewoo Engineering & Construction into a global construction company."

At a press conference held at the Gwangju Chamber of Commerce and Industry on the same day, Chairman Jung said, "Daewoo Engineering & Construction has excellent technology and outstanding talent, but its management condition has been poor as it was a company without an owner."

Earlier, on the 5th, KDBI, the largest shareholder of Daewoo Engineering & Construction (holding 50.75% of shares), designated the Joongheung consortium as the preferred bidder for the sale of Daewoo Engineering & Construction. During this process, an unusual 're-bidding' took place, causing controversy over the sale method and procedures. The Daewoo Engineering & Construction labor union is opposing the acquisition, claiming it is a rushed sale, and is conducting total strikes and other protests.

Regarding this, Chairman Jung said, "Once the acquisition is finalized, I plan to meet not only with the labor union but also with executives to convey my sincerity, and once they understand my diligence and honesty, the union will have no reason to oppose."

Chairman Jung added, "There will be no changes to Daewoo Engineering & Construction’s organization or personnel. However, if we correct preferential subcontracting and low-price bidding involving former executives, the company can significantly increase its profits."

He emphasized, "Daewoo Engineering & Construction will continue to operate independently, and not a single penny of the money coming into the company will flow out externally."

Chairman Jung expressed confidence, saying, "Since I am using surplus funds for the acquisition, it is vastly different from Kumho Group’s acquisition in the past. I have been willing to acquire it for seven years and have analyzed various data."

He said, "What I know well and am confident about is construction, and I plan to focus on this. For the time being, I have no plans for mergers and acquisitions in other industries or fields."

Regarding the controversy over the re-bidding with KDB Investment (KDBI), the entity responsible for selling Daewoo Engineering & Construction, he said, "Since we have a mutual confidentiality agreement with KDBI, I cannot speak specifically."

Chairman Jung, who has no plans to list Joongheung Construction or others on the stock market even after acquiring Daewoo Engineering & Construction, explained, "Listing is to attract external funds and assist management, but Joongheung Group has no reason to secure money, and accounting becomes complicated if listed."

Joongheung Group is a company that oversees about 30 housing, construction, and civil engineering subsidiaries, including Joongheung Togeon, ranked 15th in construction capability evaluation, and Joongheung Construction, ranked 35th. Based in Honam, the group has expanded its business by growing housing projects in new towns such as Sejong and land development districts.

This content was produced with the assistance of AI translation services.