Poongsan chief rules out defense unit sale, plans golf course and hotel in hometown Andong

Korea Enterprises Federation Chairman Ryu Jin said Poongsan Group will not sell its defense business and that profits from the unit will instead be channeled into regional development — starting with a golf course and hotel in his hometown of Andong, North Gyeongsang Province.

Ryu said the service sector, which accounts for 70 percent of employment, has been left out of the broader rise of Korean industry, and called on the government to provide institutional support to strengthen the sector's competitiveness.

Ryu made the remarks Friday at a press briefing on the third day of the 2026 Korea Enterprises Federation Summer Management Forum in Seogwipo, Jeju.

Ryu, who leads Poongsan Group — one of South Korea's leading defense companies — cited regional economic revitalization and the development of the service industry as the reasons behind his decision to build a golf course in Andong. The city is the hometown of both Ryu and President Lee Jae Myung.

"My late father (former chairman Ryu Chan-woo) passed away early and was unable to do everything he wanted for his hometown. I have always had investment in Andong in the back of my mind," Ryu said. "When Andong was designated a special disaster zone after wildfires two years ago, I felt I had to do something for my hometown."

"I was thinking about how to get more people to visit the regions, and a golf course came to mind. I am planning to build the best golf course in Korea in Andong," he said. "It will probably take three to four years once land acquisition and permits are factored in, but I think it will not be too difficult since the Andong mayor won reelection in the recent local elections."

Ryu also addressed recent speculation about a possible sale of Poongsan's defense business. "There were discussions because we were curious about what it might be worth, but the business is generating strong profits so we have decided not to sell for now," he said. "We plan to use those profits to build the golf course and hotel. I am thinking about doing what my late father could not do for the country."

He added that proceeds from the planned sale of Poongsan's Busan factory site would also be used to fund regional investment. Poongsan had previously announced plans to sell its facility in Haeundae-gu, Busan, and relocate to Gijang-gun.

"The Busan mayor has changed, so we need to discuss how to proceed, but a blueprint should emerge soon," Ryu said.

In his opening remarks at the briefing, Ryu also referenced the federation's flagship "New K-Industry" strategy, which it has been pushing this year, calling for the service sector to be developed into a global industry as part of a broader industrial transformation of South Korea. He said the service sector must be elevated to the same level as manufacturing.

"K-pop, K-content and K-food, through to beauty, semiconductors, shipbuilding and defense — Korean industries have a strong global standing, but they are concentrated in a few areas," he said. "There is a lack of synergy spanning the entire industry, including the service sector."

"There are also areas where the national system falls short. If the institutional foundation and infrastructure are weak, it is difficult to build a sustainable industrial ecosystem," he added.

"There are many regulations that exist only in Korea, but communication between the federation and the government is going well at the moment. I raised the point simply in the sense that we need to speed things up," he said.

Ryu has been vocal about elevating the service sector. At a joint task force meeting with the government on strengthening service industry competitiveness held July 6, he proposed that the service industry be developed alongside manufacturing as a central pillar of the national growth strategy.

Ryu took the helm of the federation — then known as the Federation of Korean Industries — in August 2023 as a turnaround figure and marks his third anniversary in office next month. He was reappointed at the regular general meeting last February, and his current term ends next February.

"The federation once came close to being dissolved, but I think it has now found its footing again. At its peak, it had 600 member companies; now it has more than 500," he said. "More importantly, entertainment companies like Hybe, as well as Naver, Kakao and Dunamu, have joined a federation that was previously dominated by manufacturers," he added.

Asked about the possibility of a third consecutive term, Ryu waved off the question. "I don't want a third term. I was born in 1958, the Year of the Dog, and I turn 70 on Tuesday and Wednesday" — referring to his birthday falling on July 21 and July 22.

He left the door open, however, saying, "For now, I will do my best until next February. A good solution will emerge after that. Things will work out one way or another depending on the circumstances."

Ryu also said discussions are continuing on bringing the leaders of the Big Four conglomerates — Samsung, SK Group, Hyundai Motor and LG Group — back into the federation's leadership, a goal he has championed since taking office.

The four groups all withdrew from the federation in 2016 in the wake of the influence-peddling scandal and rejoined in 2023. However, Lee Jae-yong, Chey Tae-won, Euisun Chung and Koo Kwang-mo have yet to join the federation's leadership council.

"The Big Four are extremely busy right now. It is the most critical period for them, so I have not been able to bring it up, but I consider it my duty to keep my campaign pledge before I step down," Ryu said, signaling his strong commitment to bringing the four chairmen back into the fold.