Hoban Family Eldest and Second Sons See Operating Profit 'Drop', Eldest Daughter's Profit 'Jumps' Twofold... Divergent Results Among Three Siblings

Hoban Group's Three Siblings See Diverging Subsidiary Performance
Hoban Construction and Hoban Industry Suffer Profit Drop Amid Construction Slump
Hoban Property Enjoys Strong Gains Thanks to Equity-Method Profits

The performance trends of Hoban Group's three core subsidiaries?Hoban Construction, Hoban Industry, and Hoban Property?diverged last year. Hoban Construction, led by eldest son President Kim Daeheon, and Hoban Industry, whose major shareholder is second son Executive Director Kim Minseong, saw their earnings plummet. In contrast, Hoban Property, led by eldest daughter President Kim Yoonhye, saw its profits roughly double.

Kim Daeheon, CEO of Hoban Construction (fourth from the right)

According to the Financial Supervisory Service's electronic disclosure on the 3rd, Hoban Construction, ranked 12th in construction capability evaluation, recorded consolidated sales of 2.3706 trillion KRW and operating profit of 271.6 billion KRW last year. Compared to the previous year, sales decreased by 11.9%, and operating profit dropped by 32.3%.

Net income also halved to 265.7 billion KRW compared to the previous year. This was largely due to a significant decline in profits from pre-sales. Pre-sale profits fell by more than 100 billion KRW, from 383 billion KRW in 2023 to 270 billion KRW last year. Most of the decrease in gross profit (166.7 billion KRW) compared to the previous year was caused by the reduction in pre-sale profits.

Hoban Industry, ranked 35th in construction capability evaluation, posted consolidated sales of 4.1422 trillion KRW, a 2.5% increase from the previous year. However, operating profit fell sharply by 37.8% to 169.8 billion KRW. Net income also decreased by 39% to 129.6 billion KRW. Unlike Hoban Construction, Hoban Industry achieved solid pre-sale profits. Hoban Industry’s subsidiary, Daehan Electric Wire, also recorded a net income of 74.1 billion KRW, marking a 3.2% increase from the previous year. However, Hoban Industry’s construction costs surged by 42% compared to the previous year, significantly reducing profitability.

Meanwhile, Hoban Property’s sales increased by 5.1% to 266.2 billion KRW, and operating profit more than doubled, rising 106% to 5.6 billion KRW. Net income surged more than fivefold from 5.3 billion KRW the previous year to 28.7 billion KRW. This is attributed to equity-method gains (18.1 billion KRW) from major investment destinations. Hoban Property holds subsidiaries and affiliates such as Daeacheonggwa, Bongsan Park Development, Mareuk Park, Samsung Gold Exchange, Baegot Landmark PFV, and Cornerstone Synergy No.1 New Technology Association.

Meanwhile, Hoban Group announced that it achieved total sales of 9.0782 trillion KRW and assets of 16.8814 trillion KRW last year. Compared to 2023, group sales and assets increased by 915.4 billion KRW and 787.1 billion KRW, respectively. Kim Seongyu, Chairman of Hoban Group, stated, "We secured financial soundness by focusing on systematic risk management and sound internal management," adding, "We will practice sustainable management by strengthening selective order acquisition and risk management capabilities."