Editor's Note
This editor’s note highlights the key facts and market implications behind “Park Byung-jun, Homecenter Holdings Chairman on “, with emphasis on sourcing, product fit, fabrication, logistics, or buyer impact.
Park Byung-jun, Chairman of Homecenter Holdings, emphasized, "We will grow beyond building materials production to become a new regional housing, construction, and leisure company."
“We will change the name of both Homecenter Holdings and its subsidiaries. In fact, since the 24th, we have been moving our headquarters in Nowon-dong, Buk-gu, Daegu, due to remodeling. This is essentially a point of resetting the company. You can think of it as ‘the start is now.'”
Park Byung-jun (54), Chairman of Homecenter Holdings, who recently decided to acquire shares in Donghwa Housing and make it a subsidiary, has been extremely busy lately. Meeting with Yeongnam Ilbo reporters on the 25th, Chairman Park emphasized, "We aim to transform from a company whose main focus is the production and sale of building materials like ready-mix concrete and asphalt concrete into a new regional housing, construction, and leisure company. (Of course, all company names will change.) Within the Donghwa Housing corporation, we will not only activate housing and construction but also leisure business, and add 'mortar business' as a new venture to further grow the company's scale." He added, "Since the housing and construction sector experiences considerable fluctuations, we will place a mortar business unit within the Donghwa Housing corporation to ensure stability. In particular, we will start the mortar business as a new venture to create a starting point for advancing as a nationwide enterprise." Homecenter Holdings started as a building materials company in 1970 and marks its 55th year this year. It is undoubtedly the strongest regional company in its main industries: ready-mix concrete, asphalt concrete, and aggregates. Chairman Park, who met with reporters that day, was a hearty individual with a 'go big or go home' style. Throughout the interview, he emphasized 'loyalty' and 'trust'.
He said, "We will grow Donghwa Housing into a key subsidiary within Homecenter Holdings and plan an initial public offering (IPO) in the future." Currently, only the group holding company Homecenter Holdings and its subsidiary Bogwang Industries are listed.
That's not all. At the Homecenter Holdings headquarters undergoing remodeling, they plan to restart the 'building materials department store' that declined after the foreign exchange crisis (IMF). They also expressed intent to enter the remodeling business, like 'Hanssem'. They aim to challenge not only the B2B market but also the B2C market. He revealed his ardent local patriotism, saying, "In the 1980s, Daegu construction companies literally commanded the nation. I hope Daegu can be reborn as a construction powerhouse. When the Daegu-Gyeongbuk New Airport comes, it could be an opportunity for Daegu to leap forward again." He then hinted, "Honestly, even on a small scale, I feel I must live harder for my children. I have two sons; the eldest is currently receiving management training at the company. In 2015, that child suddenly got leukemia. He survived thanks to a transplant from an unknown donor. The world saved him. Since then, I have developed a stronger desire to give back to society and contribute to the local community." The following is a Q&A with Chairman Park.
Strongest in the Region Since 1970 Founding in Ready-Mix Concrete
Planning New Ventures with Donghwa Housing as Key Subsidiary Homecenter Holdings and Subsidiaries to Change Names for 'Reset' Challenging to Establish Position as Nationwide Housing, Construction, Leisure Company ▶What are the specific execution plans for the new mortar business?
“Mortar will pave the way for nationwide expansion. Ready-mix concrete hardens if not used within 1 hour and 30 minutes, making nationwide expansion impossible. In contrast, mortar, unlike ready-mix concrete, can break free from time constraints. Nationwide entry is easier. I plan to focus more on mortar in the future. Mortar is made of 70% sand, 25% cement, and 5% others like gypsum. For this business to succeed, sand is key. We own our own quarry, and the sand from there is of the highest national quality with KS certification. It has sufficient competitiveness even in the national market. We will produce mortar by creating an industrial complex near the Gunwi IC (in Susan-ri, Uheung-myeon, Gunwi-gun). We will start construction on the complex early next year and begin full-scale production by 2027. The investment cost alone is 50 billion won on our own land of about 25,000 pyeong. This complex site is optimal for minimizing logistics costs and securing a national sales network, as it is only a 5-minute distance from the nearby Gunwi IC and our own quarry is nearby. Furthermore, we plan to expand our own quarry in Hyoryeong-myeon, Gunwi—the heart of Bogwang Industries—which is the size of 60 soccer fields (430,000㎡), to 700,000㎡ in preparation for projects like the Daegu-Gyeongbuk New Airport.”
▶Why are you confident in quality?
“Honesty. We never deceive others.”
▶You are cited as a beneficiary stock of the Daegu-Gyeongbuk New Airport.
“My father went to Washington D.C., USA, in 2004 and met with ready-mix concrete plant executives. He came back with the conclusion that ‘for a ready-mix concrete company to last 100 years, it ultimately needs a quarry.’ At that time, even though the whole family opposed it because there was a quarry in Goryeong-gun, he eventually purchased a quarry in Gunwi. This quarry, the size of 60 soccer fields, is essentially the fundamental reason Homecenter Holdings is called a beneficiary of the new airport. Since ready-mix concrete has time constraints, our company will greatly benefit from the new airport project and the development of new towns in Gunwi and Uiseong. It’s thanks to my father’s ‘stroke of genius.’ The new airport project involves Daegu City’s policy consideration for local companies and has significant trickle-down effects on the local economy, including not only construction but also lodging and restaurants. I hope local companies can join forces to create an opportunity for the region to grow further.”
▶Why do you want to enter the housing and construction business by acquiring Donghwa Housing?
“I judge that Daegu’s construction business will experience the best boom nationwide, boosted by the Daegu-Gyeongbuk New Airport and the reconstruction/redevelopment of old housing in Jisan, Beommul, Siji, Chilgok, etc. Although there is a lot of unsold inventory now and we are going through a tough period, I expect construction to stretch again around 2027. Currently, the new airport project might be bigger, but later, the scale of old reconstruction/redevelopment will be larger. The development of the Beomeo district is also of interest. After the airport relocates, the hinterland and surrounding areas in Dong-gu, Daegu, will change dramatically.”
Preparing for Daegu Construction’s Peak Boom Including TK New Airport
Full-scale Production in 2027 from Complex near Gunwi IC Kickstarting National Domination with Slow-Setting Mortar Determination of 2nd-Generation Manager to Leap with Construction ▶With various risks like the Serious Accidents Punishment Act and rising costs reducing construction companies' profit margins…
“I have long wanted to manage a construction company. Profits naturally follow if we have competitiveness. Until now, my father laid all the foundations for corporate growth. Now, as a second-generation manager, I intend to leap forward alongside construction. Personally, I think developers and contractors should go together in the future. As a shareholder of Donghwa Housing and as a business partner with construction companies, I have long observed construction companies from the side. Since we started as a building materials company, we have the know-how, which makes it easier to engage in housing and construction. A major advantage is maintaining long-term trust relationships with local construction companies. Honam construction companies collaborate well. I hope it becomes an opportunity for our local construction companies to coexist and develop further. We will also strive hard for coexistence. Last year’s sales were 560 billion won, the highest ever, and profits also hit a record high. I was surprised. This year, due to the Daegu construction recession, profits will be halved compared to last year, and next year will be the worst due to a lack of construction volume. I am prepared.”
▶From a construction business perspective, how do you foresee the future housing market?
“Due to rising construction costs, future sale prices will increase. Looking back, investments during the IMF period and the 2008 financial crisis returned as huge profits. I believe such a time will come again.”
▶What are your future leisure business plans?
“We plan to purchase ‘Daegu Forest,’ an eco-theme park in Gachang-myeon, Dalseong-gun. We are also reviewing acquiring several local golf courses. In fact, our ready-mix concrete factories have also grown their pie through M&A. We started with one location but now have 12. Simply put, it’s ‘franchising.’ Similarly, I plan to operate multiple golf courses. I will create golf courses for golfers. We must keep moving forward without stopping.”
Source: Read the original article | Published: September 26, 2024