Gyeonggi Chemical, Dongbu Steel, etc. M&A winners that have achieved business normalization… Influence of Chairman Kwak’s patriotism on this decision
5.35 trillion won in assets, 5 listed companies
jumped 14 places from 71st to 57th in the financial world
No patriotism worth creating jobs and paying taxes
“Synergy between automobiles, steel, and eco-friendliness”
[e대한경제=이근우 기자] As Ssangyong Motor is embraced by the domestic company KG Group for the first time in 18 years, the business world is paying attention to Chairman Kwak Jae-sun (63 years old), who led the M&A. It is expected that Ssangyong Motor will be able to achieve business normalization based on the experience of revitalizing companies that have been on the verge of liquidation.
According to the industry on the 30th, KG Group, which was rejoined by the large corporations this year, ranks 71st with 5.346 trillion won in fair assets based on the Fair Trade Commission. If Ssangyong Motor (total assets of 1.891.3 trillion won) is included, KG Group’s assets will rise to 7.23 trillion won, raising its business ranking by 14 places to 57th.
| Kwak Jae-sun, Chairman of KG Group. /Photo: Provided by KG Group |
Chairman Kwak, the founder of KG Group, was born on January 15, 1959 in Daejeon, and received a master’s degree in business administration from Sungkyunkwan University and an honorary doctorate in business administration from Sejong University.
He currently operates 21 domestic and 8 overseas affiliates, including 5 listed companies such as KG Chemical, KG Steel, KG ETS, KG Inisys, and KG Mobilians. For his reference, he also serves as vice president of the Korea International Trade Association and vice president of the Korea Steel Association.
After graduating from commercial high school, Chairman Kwak worked for a construction company before entering the business in earnest when he established Seil Machinery, a construction plant company in 1985. The business world appreciates his business acumen.
In fact, Chairman Kwak laid the foundation for business expansion by taking over Gyeonggi Chemical (now KG Chemical), a fertilizer company that was undergoing a revitalization process, for 90 billion won in 2003 and putting it on the right track. Since then, the group has grown through M&As not only in steel and chemicals, but also in eco-friendly/energy, information technology (IT), consulting, education, media, leisure, and food and beverage (F&B) industries.
With KG Chemical, the birthplace of the KG Group, Sihwa Energy (now KG ETS), Yellow Cap, Zeroin, Woongjin Pass One, Edaily, Inesis, Eduone, KFC Korea, Dongbu Steel, etc. He has been revitalized through leadership.
He is known for his bold management style, where once a decision is made, he executes it without hesitation. For this reason, he is called the ‘M & A matchmaker’. In particular, the industry believes that Ssangyong Motor will be able to revive as it has successfully turned to profit by acquiring Dongbu Steel (currently KG Steel) for 360 billion won in 2019 just before liquidation.
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| The main gate of Ssangyong Motor’s Pyeongtaek plant. /Photo: Reporter Lee Geun-woo |
It is said that Chairman Kwak’s will was decisive for this acquisition of Ssangyong Motor. He also expressed strong confidence, saying, “I will do my best to normalize Ssangyong Motor as soon as possible and contribute to the development of the national economy by strengthening the competitiveness of the automobile industry and creating quality jobs.”
Chairman Kwak’s unique patriotism lies in his takeover of difficult companies and normalizing them. It is said that maintaining and creating jobs, and making money and paying taxes for businesses are the greatest patriotism that contributes to society and the country. It was the same with the acquisition of Dongbu Steel and normalization, and it is known that Chairman Kwak’s patriotism had the greatest influence on the acquisition of Ssangyong Motor.
An official from the KG Group said, “Successfully turning around (improving performance) companies in difficulties will be a great benefit to society and the country. said.
Lee Geun-woo gw89@
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