[Exclusive] Owner of SK Founder’s Samcheong-dong Residence... Changes from Son to Nephew

Samcheong-dong Haengbok Training Center Transferred from SK Networks to SK Inc. after 50 Years

[Asia Economy Reporter Oh Hyung-gil] The owner of the residence at ‘142 Samcheong-dong, Jongno-gu, Seoul,’ the late Choi Jong-gun, founder of SK Group, will change from SK Networks to SK Inc.

According to the business community on the 16th, SK Inc. decided at a board meeting earlier this month to purchase the ‘SK Samcheong Happiness Training Center’ located in Samcheong-dong, Seoul, from SK Networks. The official land price of the training center site is 6.34 million KRW per square meter, and the purchase price is 36.6 billion KRW. The final transaction is scheduled to take place on March 31.

The Happiness Training Center was formerly known as ‘Seonhyewon,’ a building purchased by Chairman Choi Jong-gun in 1968 and used as his residence. When Chairman Choi prepared a new house, a Japanese acquaintance advised him to move because the site’s energy was strong according to feng shui, but Chairman Choi reportedly said, "My energy is stronger than the site’s, so don’t worry."

After Chairman Choi’s passing, SK Networks (formerly Seonkyung Textile), the founding company of the group, managed the property for over 50 years. The name Seonhyewon was given in 1990, and it was used as a training and workshop space for employees. After remodeling the building in 2005, SK Networks renamed it ‘Samcheong Happiness Training Center’ and operated it as a space for talent development.

However, from next month, the group’s holding company will take over management.

An SK official explained, "It has long been a space used for employee training and meetings," adding, "The group has been reviewing asset utilization plans, and because it is a rare training center located in downtown Seoul, the holding company decided to purchase it for more efficient management." However, the official said, "No specific remodeling or future use plans have been finalized yet."

Happiness Training Center, which was used as the venue for the new employee interviews (Source: SK Networks)

The timing of the sale of this building, which holds symbolic meaning within the group as the founder’s residence, coincides intriguingly with the ‘ups and downs’ of former SK Networks Chairman Choi Shin-won.

Choi Jong-gun’s second son, former Chairman Choi, was sentenced to 2 years and 6 months in prison in the first trial last month on charges of embezzlement and breach of trust, and is currently appealing. He began owner management as SK Networks chairman in 2016 but resigned from all positions within just three years.

The third son, Choi Chang-won, Vice Chairman of SK Discovery, embarked on independent management centered on SK Discovery after selling all shares of the affiliate SK Construction in 2019. The current SK Group Chairman Choi Tae-won is the son of Choi Jong-hyun, the younger brother of Choi Jong-gun, making him the nephew of Choi Jong-gun.

With the absence of former Chairman Choi Shin-won, attention is focused on his eldest son, Choi Sung-hwan, SK Networks Business General Manager. Since joining SK Networks as Planning Director in 2019, Choi has been taking charge of investment management and mergers and acquisitions (M&A), undergoing management training.

In particular, he has steadily increased his shares by purchasing about 170,000 treasury shares on the market in November and December last year. Choi Sung-hwan, the largest individual shareholder, holds 1.89% of shares, while his father, former Chairman Choi, holds 0.84%. The largest shareholder is SK Inc. with 39.1%.