Chairman Park Chang-gu: "Acquired Kumho Resort to Preserve Kumho's Legacy"

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[Asia Economy Reporter Hwang Yoon-joo] "I participated in the acquisition battle for Kumho Resort to preserve the legacy of Kumho."

Park Chan-gu, chairman of Kumho Petrochemical, has put his life on the line to continue the Kumho family legacy by acquiring Kumho Resort, a subsidiary of Kumho Asiana Group.

In an interview with Asia Economy on the 21st, Chairman Park emphasized, "If we do not acquire it, it will go to Korean Air or a third party," adding, "We considered not only profit generation but also the justification of continuing the Kumho legacy."

It is interpreted that Chairman Park actively participated in this acquisition after witnessing the sale of Kumho Tire, the foundation of Kumho Asiana Group, followed by Asiana Airlines. Kumho Resort was managed by Park Chan-gu’s older brother, Park Sam-gu, former chairman of Kumho Asiana Group. In the mid-2000s, Park Chan-gu experienced a 'brothers' conflict' over management rights with Park Sam-gu. Their relationship cooled, and in 2015, the group was split into Kumho Asiana Group (led by Park Sam-gu) and Kumho Petrochemical Group (led by Park Chan-gu).

Since then, Chairman Park has maintained distance from Kumho Asiana Group. When creditors sold Kumho Tire and Asiana Airlines, subsidiaries of Kumho Asiana Group, in 2017, he did not participate in the acquisition battle. This was because Park Sam-gu opposed Kumho Petrochemical’s participation. However, Kumho Petrochemical has stated that it did not participate in the acquisition battles because they did not align with its business strategy.

An industry insider said, "Although there was conflict between the two, both Kumho Group and Kumho Petrochemical Group used Asiana Resort together," adding, "Since it was a place the family used together, it held great meaning for both sides, so Chairman Park probably could not bear to see it go to a third party."

Regarding this acquisition, evaluations suggest that Chairman Park has secured both justification and practical benefits. The core business of Kumho Resort is Asiana Country Club (Asiana CC). Following the COVID-19 pandemic, golf courses have experienced a boom, and it is expected to secure stable cash flow. Kumho Petrochemical is expected to record strong performance in the first quarter of this year, following last year’s good results.

Chairman Park explained, "We made a profit last year by exporting NB latex raw materials," adding, "We benefited from the sharp increase in domestic and overseas demand." He continued, "From April onwards, if many competing products from China are supplied, the market may slow down, but due to excellent price competitiveness, we expect better performance than competitors," and added, "We will set specific management goals by the end of the first quarter this year."