Poongsan decides not to sell ammunition business: FKI chief

Federation of Korean Industries (FKI) Chairman Ryu Jin speaks during a press conference on the sidelines of the 2026 CEO Summer Forum hosted by the business lobby on Jeju Island, Friday. Courtesy of FKI

JEJU ISLAND — Poongsan Group has decided not to sell its high-profile ammunition business, its Chairman Ryu Jin said Friday, dismissing persistent speculation that the defense unit could be put on the market as rising global demand boosts the company's earnings.

Ryu, who also serves as chairman of the Federation of Korean Industries (FKI), said the company had previously explored the potential value of the business, but decided to retain it because of its strong profitability.

"Poongsan's defense business is performing well, so we had discussed what it might be worth," Ryu told reporters during a press conference on the sidelines of the FKI CEO Summer Forum.

"However, we have decided not to sell it for now."

Instead of divesting the ammunition business, Ryu said Poongsan plans to use the profits generated by its defense operations to pursue new service-sector investments for revitalizing regional economies.

He said the group is considering projects such as construction of golf courses and hotels outside the Seoul metropolitan area, describing them as part of the firm’s strategy to foster local development and generate revenues from untapped territories.

"Rather than selling the business, we want to invest those earnings in regional development," Ryu said. "I have been thinking about creating the new service businesses as a way of contributing to the country in areas my late father was unable to pursue."

Poongsan ammunition rounds / Captured from Poongsan's website

Poongsan, Korea's leading ammunition manufacturer, has repeatedly been the subject of market speculation over a possible sale of its defense business. The rumors have resurfaced periodically as the company's defense earnings have climbed amid heightened geopolitical tensions and increased global military spending.

Ryu also addressed questions over whether he would seek a third consecutive term as FKI chairman after his current tenure expires in February next year.

While saying he would prefer to step down, Ryu stopped short of ruling out another term, noting that no clear successor has emerged.

"I would rather not serve a third term, but we will have to see how things develop," he said. "My priority is to do my best until my current term ends."

Ryu, who turns 70 next year, said he believes leaders should leave office while still at the peak of their performance, adding that even his family has encouraged him to hand over responsibilities to the next generation.

Still, he said the final decision would depend on circumstances and whether a suitable successor is prepared to take over the role.

Ryu also reiterated his commitment to bringing the heads of Korea's four largest conglomerates back into the FKI's leadership, although he acknowledged that the timing remains challenging.

Federation of Korean Industries (FKI) Chairman Ryu Jin speaks during a press conference on Jeju Island, Friday. Courtesy of FKI

Samsung, SK, Hyundai Motor and LG withdrew from the FKI in 2016 following a political influence-peddling scandal involving former President Park Geun-hye. While the four groups have since restored their membership, none of their chairmen has rejoined the organization's leadership council.

Ryu said he has deliberately avoided pressing the conglomerate chiefs to return, given that they are currently facing pressing business challenges, including intensifying global competition in semiconductors and other strategic industries.

"I feel sorry bringing it up at a time when the four groups are dealing with such critical issues, especially in semiconductors," he said. "The door is always open, but the decision should ultimately be made by each chairman."

Even so, Ryu said persuading the four business leaders to rejoin the FKI leadership remains one of the key pledges he made upon taking office.

"I made it a promise when I became chairman," he said. "Before I leave, I will do my best to fulfill that commitment."