Najin, Woo Giwon's Private Company, Wins Bid for Golden Plaza
Acquires Daegu's "Eyesore" Left Abandoned for 26 Years for 14.3 Billion Won
First Major Real Estate Development Project... Appears to Be Part of Successor Training
Aims to Improve Both Local Economy and Group Image
Woo Giwon, the CEO of SM Hi-Plus and a prominent heir to SM Group, which ranks 33rd among Korean conglomerates, has acquired Golden Plaza, a "ghost building" that has been left abandoned in downtown Daegu for over 26 years. There is growing attention on how he will resolve this large-scale project, which has faced difficulties for decades.
According to the Financial Supervisory Service’s electronic disclosure on June 18, Najin, a real estate development company wholly owned by CEO Woo, announced on June 9 that it had decided to acquire non-current assets. Najin successfully bid for Golden Plaza, located in Bokhyeon-dong, Buk-gu, Daegu, which was put up for auction by the Korea Housing & Urban Guarantee Corporation (HUG), at a price of 14,291,300,000 won. This building had repeatedly failed to sell at auction since 2020, but was finally sold at about half of its initial appraised value (approximately 30 billion won). Najin has already paid a 10% down payment, and plans to pay the remaining 40% (interim payment) and 50% (balance) by October 10, thereby acquiring full ownership.
Contrary to its name, Golden Plaza is widely known among Daegu residents as the "Eyesore of Daegu." Construction began in 1989, but was delayed due to financial difficulties and disputes over lien rights. In 1999, construction was halted when the project was 82% complete. The unfinished mixed-use building, with seven basement floors, 17 above-ground floors, and a total floor area of about 40,000 square meters, has remained abandoned ever since. For decades, this "ghost building" has stood in the heart of Daegu. It is located at Bokhyeon Five-way Intersection, where Dongbuk-ro, Daehak-ro, Geomdan-ro, and Gonghang-ro meet. The building is near Kyungpook National University, an area with heavy foot traffic and frequent traffic congestion.
There have been previous attempts to revive Golden Plaza. In 2014, private developer KPI&H acquired the site through a court auction and tried to restart the project. However, progress stalled due to a third party claiming lien rights after acquiring construction payment bonds, and opposition from pre-sale buyers. At the time, KPI&H had secured a housing and urban fund loan from HUG to proceed with construction. But as the project became stalled, HUG notified KPI&H of "loss of benefit of time" and terminated the loan agreement. Ultimately, in 2018, KPI&H transferred the building and all associated rights to HUG, which then obtained actual ownership and began auction proceedings to recover construction costs. A HUG representative stated, "All legal risks have now been resolved, following a Supreme Court victory, eviction lawsuits, and compulsory execution."
Woo, the new owner of this building, is the youngest and only son among the five children (one son and four daughters) of SM Group founder Woo Ohyun. He is the second-largest shareholder (25.99%) of Samla Midas, the group's holding company, and is considered the leading successor to SM Group. As CEO of SM Hi-Plus, he has achieved results in practical projects such as the Hi-Pass automatic recharge card. He has also gained experience in real estate development through his personal corporations, Najin and Rado. Since the acquisition and redevelopment of Golden Plaza is the first large-scale real estate project he is directly leading, some view this as part of his succession training at the group level. Construction, along with shipping, is one of the two main pillars supporting SM Group.
The Daegu local community expects that the normalization of Golden Plaza will help improve the city's image and revitalize the local economy. However, given that several previous attempts to revive the project have failed and the real estate market in Daegu is currently sluggish, many analysts believe that coordinating the interests of various stakeholders and navigating complex administrative procedures will be key factors in determining the project's success.
A real estate industry insider in Daegu commented, "There are high expectations for the redevelopment of this eyesore that has been left abandoned for decades, but conflicts and opposition from previous stakeholders still remain," adding, "This is a project that could impact both the local economy and the image of SM Group."
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