[비즈한국] Jung Chang-sun, the founder of Jungheung Group, has passed away due to a chronic illness. He was 84 years old. According to Jungheung Group, Chairman Jung passed away peacefully on the 2nd at approximately 11:40 PM, surrounded by his family, while receiving treatment at Chonnam National University Hospital in Gwangju. The mortuary was set up at the VIP Funeral Town in Maewol-dong, Seo-gu, Gwangju. The funeral procession will take place at 7:00 AM on the 5th, and after a temporary burial at Gaecheon-sa Temple in Hwasun-gun, Jeollanam-do, the permanent burial site will be announced later in accordance with the family's wishes.
Who is Chairman Jung Chang-sun?
Born in 1942, Chairman Jung Chang-sun worked as a carpenter after graduating from high school. He founded Geumnam Housing in 1983, marking the start of his construction business. Geumnam Housing changed its name to Jungheung Construction in 1989 and subsequently expanded its operations significantly based in Gwangju and the Jeollanam-do region. Since then, Jungheung Group has grown steadily and currently ranks 20th in the business world. The group has expanded beyond construction into various fields including civil engineering, leisure, and media.
Notably, Jungheung Group established itself as a major force in the construction industry following the acquisition of Daewoo E&C047040 in 2022. The group invested 2.1 trillion won in the acquisition, which raised significant concerns at the time. Given the size of Jungheung Group, raising 2.1 trillion won was no small feat, and there were fears that if Daewoo E&C failed to perform as expected, the entire group could face a financial crisis. Kumho Asiana Group also once acquired Daewoo E&C, but poor performance subsequently led them on a downward path. Fortunately, Daewoo E&C has continued to operate at a profit without any major issues so far.
Jungheung Group stated that Chairman Jung Chang-sun maintained a management philosophy that prioritized financial soundness and business stability over aggressive outward expansion. They emphasized that he built the group's foundation through phased business operations even during times when the construction industry faced hardships, such as the IMF financial crisis, the global financial crisis, and the real estate market downturn.
Chairman Jung was known for his special affection for his hometown, Gwangju. He served as the chairman of the Gwangju Chamber of Commerce and Industry from March 2018 to March 2024, representing the voices of local business owners. However, he was known for avoiding media exposure and focusing on practical, hands-on management. Jungheung Group stated, "We will continue to forge ahead as a sustainable enterprise by upholding the founder's vision, ensuring stable management, and fulfilling our social responsibilities."
What is the Future of Jungheung Group?
Chairman Jung Chang-sun is survived by his three children: his eldest daughter Jung Hyang-mi (60), eldest son Jung Won-ju (Chairman of Daewoo E&C and Vice Chairman of Jungheung Group, 58), and second son Jung Won-chul (Chairman of City Construction, 57). The succession process within Jungheung Group is largely complete. In 2023, Jungheung Group converted Jungheung Togun into its holding company. Currently, major affiliates, including Daewoo E&C, are under the control of Jungheung Togun. Chairman Jung Won-ju holds a 100% stake in Jungheung Togun.
Chairman Jung Won-chul's City Construction was spun off from Jungheung Group in 2021. City Construction owns the apartment brand 'City Pradium' and is 100% owned by Chairman Jung Won-chul. City Construction recorded 255.4 billion won in revenue and 4.8 billion won in operating profit in 2024, ranking 61st in the 2025 construction capability evaluation.
While Chairman Jung Chang-sun's eldest and second sons are active in their respective fields, his eldest daughter, Jung Hyang-mi, is not engaged in any particular management activities. Instead, her husband, Kim Bo-hyun (President of Daewoo E&C), is involved in management, and their two sons, Kim Yi-jun (31) and Kim Yi-yeol (31), are also reportedly employed at Daewoo E&C.
Given the current ownership structure of Jungheung Group, it is difficult for the family of Jung Hyang-mi to exert significant influence. Jung Hyang-mi's stakes in Jungheung Group affiliates include 60% of J&KS and about 0.98% of Jungheung Construction Industry. Even then, J&KS is essentially a family company entirely owned by Jung Hyang-mi's family. President Kim Bo-hyun also does not hold a significant stake, other than 0.004% of Daewoo E&C.
However, there are variables. Chairman Jung Chang-sun held a 76.74% stake in Jungheung Construction, 94.65% in Jungheung Housing, and 81.66% in Jungheung Construction Industry. These companies have not yet been incorporated as subsidiaries or sub-subsidiaries of the holding company, Jungheung Togun. If Chairman Jung's shares in these companies are divided among his children in a one-third ratio, Jung Hyang-mi could wield considerable influence, at least within those specific firms. Depending on the family's agreement, there is a possibility that Jung Hyang-mi could take over some of these affiliates for a spin-off. Jungheung Group did not mention anything regarding the inheritance of shares while announcing the news of Chairman Jung Chang-sun's passing.
With the passing of Chairman Jung Chang-sun, changes are expected in the board of directors of Jungheung Group's affiliates. Chairman Jung served as an executive director for Jungheung Construction Industry, Naju Tourism Development, and Jungheung S-Class, and was also listed as a representative partner for Jungheung Housing. Since Jungheung Housing is a partnership, it is classified as having a representative partner rather than a CEO. While the business community suggests Chairman Jung Won-ju as his successor for these board positions, the possibility of other individuals taking office cannot be ruled out.