Booyoung buys Samsung building
By Park Jin-hai
Samsung Life buildig in central Seoul / Korea Times file
Booyoung Group, the nation’s 19th largest conglomerate by assets, bought Samsung Life Insurance’s building for 580 billion won, according to Booyoung on Sunday.
The construction company signed the deal with Samsung Life two days ago.
The two had been in discussions for the sales of the 25-story building in central Seoul after Samsung's negotiations with KB Financial Group failed in mid-December.
Booyoung’s headquarters are located behind the Samsung Life building.
With the deal, the industry is seeing that beginning with Samsung Life, Samsung’s other financial arms, including Samsung Securities and Samsung Card, will be relocated. Samsung Group had a relocation plan to move its financial affiliates to its headquarters in Seocho, central Seoul, for the latter half of last year, but the plan went nowhere as the sale of the Samsung Life building to KB did not go through.
“The relocation plan is going to take huge office space. Through consultation with our affiliates, we will begin a review of the plan,” said a Samsung Life official.
Booyoung is known to have deep pockets. Although the other construction companies are struggling with falling profits, Booyoung has been expanding its business. In the last three months, it has either purchased or plans to purchase over 1 trillion won worth of real estate including land in Songdo for 315 billion won and the O2 Resort in Gangwon province. Although it failed get a duty free license, it tried to enter that business last year.
Booyong’s rank by assets jumped to 19th last year, from 36th in 2004.
The purchase of the building from Samsaung will be closed by the third quarter and since the company is flush with cash, no problems are expected with the sale.
Booyoung’s assets reached 10.6 trillion won in 2014, with a debt-to-equity ratio that stands at 362 percent. Its assets that it can turn into cash within one year are estimated to be 4.5 trillion won, while its chairman has over 2 trillion won in assets.