Posco puts Jack Nicklaus GC up for sale in non-core asset restructuring

Posco Group has officially announced the sale of Jack Nicklaus Golf Club Korea in Songdo, Incheon. The group acquired the course in 2022 to use as a business venue but concluded that actual utilization fell short of expectations. Posco plans to sell the club through a competitive bidding process and channel the proceeds into future growth businesses.

"This sale is part of a group-wide restructuring of low-profit, non-core assets aimed at securing competitiveness in our core businesses and strengthening our financial health," a Posco official said Wednesday.

The sale will proceed through an open competitive process rather than a negotiated deal with a specific buyer.

"We will pursue the sale through competitive bidding to ensure transparency and fairness in the transaction, and will make every effort to protect the rights and interests of key stakeholders," the official said.

Posco also clarified how it intends to use the proceeds. "Cash generated from the sale will be used to fund the group's future growth investment," the company said.

Jack Nicklaus Golf Club Korea is an 18-hole members-only course in Songdo International City, Incheon. Designed by golf legend Jack Nicklaus, it is currently owned by Posco Wide, the real estate management affiliate of Posco Group.

Posco acquired the club in 2022 by exercising a right of first refusal. The deal involved assuming membership deposit liabilities of about 235 billion won and injecting roughly 70 billion won in cash, putting the total transaction at around 300 billion won. The per-hole price of more than 16 billion won set a record for the highest price ever paid for a golf course in South Korea.

If the sale goes through, the club will have changed hands for the second time in four years. Market watchers are paying close attention to the sale price, given the rarity of a members-only golf course in the heart of Songdo. However, a heavier acquisition tax burden introduced this year on transfers of membership-based golf courses is seen as a variable that could weigh on the final price.

Poongsan Group is among the potential buyers.

The decision is seen as an extension of the group restructuring under way since Chairman Jang In-hwa took office. Posco Group has been divesting low-profit businesses and non-core assets to concentrate resources on its core operations, including steel and secondary battery materials.

Posco Group completed 73 restructuring cases through the end of last year, generating 1.8 trillion won in cash, and had completed a cumulative 85 cases through the first half of this year, generating about 2.2 trillion won ($1.62 billion). The group has also expanded its restructuring target, aiming to complete a total of 129 cases by 2028 and secure 3.5 trillion won in cash.