Kyowon Group, Business Structure Transformation... Merger of Real Estate and Investment Corporations

Merger Promotion Between Real Estate and Investment Corporations and Between Educational Corporations
Educational Merger Corporation to Transition to Professional Management System
Enhancing Expertise and Transparency in Each Business Sector

Kyowon Group announced on the 31st that it will rationalize its business structure by establishing a management structure suitable for each business area. The photo shows the Kyowon Group headquarters. Photo by Kyowon Group

[Asia Economy Reporter Kim Heeyoon] Kyowon Group announced on the 31st that it will rationalize its business structure by establishing a management structure suitable for each business area.

Kyowon Group announced on the 31st that it has approved the mergers between three real estate and investment-related corporations?Kyowon, Kyowon Property, and Kyowon Invest?and between two education business corporations?Kyowon Edu and Kyowon Creative. The merger date is set for October 1.

The group plans to create synergy through mergers between corporations with high business relevance, efficiently build its business structure, and enhance future value. Additionally, it aims to increase management transparency and efficiency, strengthen responsible management centered on professional managers, and secure growth momentum.

This merger focuses on resolving management inefficiencies caused by overlapping and mixed business areas within each corporation. By separating non-education and education sectors and integrating corporations within the same business group, it will minimize overlapping costs and advance the management control system.

The merger of the real estate and investment corporations will proceed with Kyowon Property absorbing Kyowon and Kyowon Invest. The merger ratio between Kyowon Property and Kyowon is 1 to 0.64, and Kyowon Invest will merge into Kyowon Property as a 100% subsidiary through a no-capital-increase merger method.

The surviving corporation, Kyowon Property, will be led by Chairman Jang Pyungsoon, who will strengthen responsible management as the executive. While actively investing to create future value for the group, it plans to focus on securing new growth engines.

The education business corporation merger will proceed with Kyowon Edu absorbing Kyowon Creative. The merger ratio is 1 to 6.3, and Kyowon Kumon will not participate in the merger to maintain brand independence and will operate independently.

The merged education business corporation plans to establish an independent management system centered on professional managers to make swift decisions amid rapidly changing management environments and solidify its position as a leading edutech company.

The merged corporation Kyowon Edu will adopt a dual CEO system. They newly appointed Bok Eesoon, former head of the Edu Business Division, and Shin Youngwook, who led the group’s IT research and development organization. CEO Bok will oversee overall management and sales, while CEO Shin will focus on strengthening edutech product competitiveness through enhanced R&D capabilities. Kyowon Kumon will also transition to a professional management system, appointing President Kim Chungoo as the new CEO.

After the merger, the group will be divided mainly into two pillars: real estate and investment, and business sectors. The business sector will operate as independent corporations by business area, including Kyowon Edu and Kyowon Life.

Kyowon stated, "We plan to reduce the total number of affiliates from 11 to 8 and eliminate circular shareholding links between existing education and non-education businesses to transition to a transparent and advanced business structure."

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