SPC, Kakao, Maeil Dairies... Why They Choose Not to Build Headquarters

A building with an office where the company's work is conducted, known as a company headquarters (社屋, Saok). Starting with the main branch of Johung Bank in 1966, companies lined up to establish their headquarters, including Samsung Main Building, Daewoo Center, Hyundai Gyedong Saok, Yongsan International Building, and LG Twin Towers. Companies have used their headquarters for marketing purposes as well as a means of asset preservation. Just as many people dream of 'owning a home,' most corporations yearn for 'owning their own headquarters.' However, there are places that have not built headquarters with their own philosophy. SPC Group, the nation's top confectionery and bakery company, food company Maeil Dairies, IT company Kakao, and construction company IS Dongseo are representative examples.

SPC Group Yangjae Office Building Exterior View

SPC Group, with a history of 78 years, does not have a headquarters. This is due to Chairman Heo Young-in's management philosophy of "building more research centers and production facilities instead of spending money on a headquarters." Chairman Heo always tells employees, "We must develop high-quality bread and provide good products to many people." This philosophy of Chairman Heo originated from the quality and frugality spirit of the founder, the late Honorary Chairman Heo Chang-seong, and his wife, the late Kim Soon-il. Founder Heo insisted on quality management no matter what. He emphasized, "Customers judge by a single piece of bread," and "If you satisfy customers, profits will follow." Mrs. Kim taught her children the spirit of sincerity and thrift with the saying, "Baking remains at the fingertips." This means that when sincerity gathers at the fingertips, the taste improves, and when sincerity gathers at the fingertips, unnecessary waste disappears. Mrs. Kim is said to have tied magnets to strings for her children. When making wooden boxes for bread, many nails are produced. Mrs. Kim gave her children pocket money according to the number of nails collected to instill the spirit of thrift.

SPC Group has been leasing a building in Yangjae-dong, Seocho-gu, Seoul since 2012. Owned by Koramco Asset Trust, this building consists of one tower with 6 basement floors and 20 above-ground floors, with a building area of 1,858㎡ and a total floor area of 40,744㎡. Employees of subsidiaries such as Paris Baguette, Dunkin' Donuts, Baskin Robbins, and Samlip Foods work here. SPC Group operates 30 domestic and 5 overseas production facilities. The company is also building an SPC Johor Bahru halal-exclusive factory in Malaysia. SPC's affiliated research centers cover eight fields, including basic materials, product development, packaging, and artificial intelligence.

Maeil Dairies, a food company established 54 years ago, has never owned a headquarters building. It still leases a building in Gwanghwamun. Chairman Kim Jung-wan was deeply ingrained with the habit of thrift, having heard the phrase "You must save" repeatedly from the previous chairman. Instead of a headquarters, he invested in research and production facilities. Maeil Dairies owns seven factories in Pyeongtaek, Gyeongsan, Gwangju, Yeongdong, Asan, Cheongyang, and Sangha. In Pyeongtaek, there is also a central research center with about 200 employees.

Kakao Office 'Ajit' located in Pangyo

IS Dongseo is known as a company without a headquarters despite construction being its main business. Chairman Kwon Hyuk-woon considers the cost of building a headquarters as 'dead money,' emphasizing the importance of corporate cash flow. His philosophy is that if there is money to build a headquarters, it is better to invest it in business. The background of his focus on cash flow comes from a painful experience. In the early 1980s, Chairman Kwon made a mistake with a joint guarantee, and even the desk clock on his daughter's desk was marked with a red tag. IS Dongseo strictly manages funds according to the principle of 'not exceeding a debt ratio of 100%.' The company is actively exploring business diversification in areas that can create synergy with construction. Acquisitions such as Dongseo Industry, Korea Rental, and Youngpoong Pile are representative examples.

There are also companies that missed the timing or were unlucky and could not acquire headquarters but have given up the dream of 'owning their own headquarters' and are focusing on their work. Kakao's new headquarters in Pangyo, called 'Ajit,' is known as the 'dream headquarters for office workers.' However, the actual owner of 'Ajit' is someone else. In April 2020, Kakao signed a 10-year lease contract with Mirae Asset Global Investments and settled in 'Alphadom City' Block 6-1 near Pangyo Station in Seongnam-si, Gyeonggi Province. Kakao connected all floors with vertical stairs so employees can communicate anytime and anywhere. There are also a book ajit, outdoor terrace, cafe, infirmary, massage, nap room, and in-house restaurant. Ajit houses Kakao headquarters as well as subsidiaries such as Kakao Pay, Kakao Pay Securities, Kakao Ventures, Kakao Impact, and Kakao Healthcare. Kakao once wanted to own a headquarters. However, after repeated failures in purchasing land in Pangyo, the dream of building a headquarters was temporarily shelved. A Kakao official said, "It is difficult to find a site in Pangyo that can accommodate employees, and it is also not easy to leave Pangyo," adding, "We are currently focusing on business investment rather than a headquarters."