Jungheung Group, a major South Korean construction conglomerate based in Gwangju, announced Monday that it has become the largest shareholder of Herald Corp., the parent company of The Korea Herald and The Herald Business.

As part of its strategy to diversify its construction-focused business, Jungheung completed acquisition of 47.8 percent stake in Herald Corp. late last month, pledging to innovate with the Seoul-based media company through strategic investments.

Upon inauguration as the new chairman of Herald Corp., Jungheung chief Jung Chang-sun said he would support the company to take the lead in the quickly evolving media environment inside and outside of the country. 

“As Jungheung has built its reputation as a builder of premium apartments, it will fully support Herald Corp. as a publisher of premium newspapers,” said Jung. “We will actively take the lead in creating a new media environment with Herald Corp., which has been rapidly expanding to become a media enterprise producing unique contents.”

The 77-year-old chairman is the founder and chairman of Jungheung, which started as Geumnam Housing Construction in 1983. The group has 34 affiliates, including its key business Jungheung Construction, which recently raised its profile as a builder of the premium apartment brand Jungheung S Class.

The group is the 37th-largest company in Korea, with 9.53 trillion won ($8.22 billion) in assets. On the back of its successful apartment business, Jungheung saw 5.1 trillion won in revenue with net profit of 993 billion won last year.

Herald Corp.’s new chairman is a business community leader in Gwangju. He is the chairman of the Gwangju Chamber of Commerce and Industry and Namdo News, a regional newspaper based in Gwangju. He is also the former chairman of the Hanmaum Scholarship Foundation.

Last year, Jung received the Presidential Award from the Korean Architecture Awards. He received a Bronze Tower Order of Industrial Service Merit in 2005.

By Cho Chung-un (christory@heraldcorp.com)