The chairman of Samho Group, Jo Bong-gu, supervised the restructuring of troubled companies, following the Lee Chul-hee and Jang Young-ja incidents. The group was once a prominent construction company in Korea, alongside Hyundai Construction, which led to competition with Hyundai Construction. Samho Group played a significant role in the construction industry from 1952 to 1984. The founder of Samho Group was known as a legendary landowner in Gangnam, and the downfall of the group he established raised questions about the reasons behind it. The group started in 1952 when the founder, Jo Bong-gu, established the Maryas manufacturing company ‘Donggwang Industry.’ He built the foundation by producing knitwear products and exporting sweaters, leading to investments in real estate in Gangnam in the 1960s. Gangnam was a desolate area in the 1960s, but Jo Bong-gu noticed its potential and began acquiring large plots of land even before development began. He accumulated significant wealth by buying large plots of land in Banpo and Bangbae-dong areas before the development of Gangnam. As the third Han River Bridge, known as Hannam Bridge, was built in 1969, he started to reap substantial profits from the changing landscape. With the opening of the Gyeongbu Expressway in the 1960s, he quickly rose to become one of the legendary landowners in Gangnam. Jo Bong-gu focused on not only owning land but also venturing into real estate development. He established a construction company called ‘Samho Housing’ by separating the development department from Donggwang Industry and merging it with the existing construction company, Cheonkwangsa. Jo Bong-gu started actively engaging in housing construction projects, leading to the development of famous apartments such as the Geumhwa Apartment in Yeoksam-dong and the Jindalle Apartment. In 1977, he established Samho Development to expand into hotel and leisure businesses and initiated overseas construction projects with the launch of projects in Kuwait. In the 1970s, Jo Bong-gu consistently ranked among the top two income tax payers, and Samho Group climbed to the 9th position in the business world. However, his Middle East ventures began to fail, leading to significant financial losses. The construction industry recession that followed further contributed to the downfall of Samho Construction, the largest real estate conglomerate in Korea. The infamous Lee Chul-hee and Jang Young-ja incidents, known as the largest financial fraud case in South Korea since its founding, led to the inclusion of Samho Group in the list of troubled companies for restructuring during the Chun Doo-hwan regime. This marked the beginning of the disintegration of Samho Construction, which was swiftly dismantled. Most of its affiliated companies were taken over by Daerim Group. Jo Bong-gu tried to reclaim his group during the No Tae-woo administration, but to no avail. He even sent petitions to the Kim Young-sam administration, but received no response. Despite his efforts, he ultimately had to yield Samho Group to Daerim Group due to pressure from the Chun Doo-hwan regime. Jo Bong-gu passed away in 2009 at the age of 89 in the US, leaving behind a legacy of many real estate properties and businesses that have changed hands over the years. Controversy continues to surround the downfall of Samho Construction, with debates ongoing about whether it was a result of the Chun Doo-hwan regime’s unilateral dismantling or the challenges faced during a construction industry recession.
Legendary Gangnam land tycoon’s company failed in competition against 정주영.
