Promoted to Chairman on the 1st of Last Month... Leading Holding Company SonoInter
Restructuring through Construction Division Separation and New Business Exploration
Seo Jun-hyuk, the second-generation vice chairman of Daemyung Sono Group, has been appointed chairman of Sono International, the group's holding company. This move clearly establishes the succession of management rights and is expected to accelerate structural improvements by separating the underperforming construction business division, strengthening new business development, and expanding into overseas markets.
Chairman Seo Jun-hyuk of Sono International, the holding company of Daemyung Sono Group [Photo by Daemyung Sono Group]
According to industry sources on the 21st, Seo was promoted to chairman of Daemyung Sono International as of the 1st of last month. This marks the consolidation of the Seo chairman system just over four years after he became vice chairman of Daemyung Sono Group in 2018.
Daemyung Sono Group is held by Sono International as its holding company. The governance structure changed when Sono International merged with Daemyung Sono, a group subsidiary, in reverse in 2021. After assuming the chairmanship of Sono International, Seo separated the construction business division through a spin-off on the 1st, creating Daemyung Construction, an affiliate of Daemyung Sono Group. This separation occurred two years after Daemyung Construction was incorporated as a subsidiary of Sono International in 2021. Daemyung Construction’s debt ratio worsened significantly, soaring from 400% in 2019 to 945% in 2021, reflecting a deteriorating management environment.
An industry insider commented, "The construction sector requires large investments and carries significant risk. It appears that the new chairman’s plan is to streamline this division and enhance competitiveness through new businesses."
Seo is the son of the late Seo Hong-song, the founder of Daemyung Housing, the origin of Daemyung Sono Group. As of 2021, Sono International’s special related parties, including Seo’s mother, Park Chun-hee, chairman of Daemyung Sono Group, hold 77.03% of the shares. Through Sono International, the holding company, they control about 20 affiliates. Park has stepped down from frontline management, and Seo’s sister, Seo Kyung-sun, serves as CEO of Daemyung Construction, which was spun off.
Seo is an 'overseas-educated' executive who majored in economics at the University of Minnesota in the United States. He has held various positions including at Daemyung Station, Sono Pet & Company, Sono Hotels & Resorts, and as CEO of Daemyung Sono. He led changes such as renaming the lodging brand, formerly known as Daemyung Resort, to 'Sono,' an Italian word meaning utopia, and introduced the mattress brand 'Sono Season' based on the business know-how of Sono Hotels & Resorts. He has also operated Sono Pet Club & Resort, a complex cultural space for pet owners, since 2007.
He is also actively pioneering new businesses targeting overseas markets. Based on decades of accumulated hotel and resort operation expertise in Korea, the group is engaging in entrusted operations. A representative example is Sono International’s operation of the Song Gia Golf & Resort in Hai Phong, Vietnam, owned by Hyundai Construction, under the 'Sonovel' brand since 2020. The plan is to expand this model to Southeast Asia, Europe, and the Americas to promote the Sono brand globally.
Thanks to this strategy, Daemyung Sono Group has achieved clear results despite the adverse effects of COVID-19. Preliminary figures show consolidated sales exceeding 1 trillion won and operating profit surpassing 100 billion won last year. An operating profit margin above 10% is considered a significant achievement in the leisure industry.
Industry insiders believe that with Seo’s promotion, there is a high possibility of resuming the initial public offering (IPO). Previously, Daemyung Sono Group had planned an IPO for its holding company, Daemyung Sono, in 2019 but postponed it due to the worsening business environment caused by COVID-19. A Daemyung Sono Group official stated, "There are no immediate plans to pursue an IPO," but added, "There is a possibility of reconsidering it in the long term."
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