Korea’s Aju to spin off key building material business

South Korea’s Aju Group is set to split its parent company into a construction material firm and an investment corporation to enhance its professional and responsible management.

Aju Co., the group’s de facto parent company, said on Thursday that its board of directors has decided to spin off its core business of building materials such as ready-mixed concrete, and set up an additional entity dubbed Aju Corp. The new company will focus on the investment and property development businesses.

“Aju Corp. will focus on the building material business for intensive investments in the core sector and better management to enhance corporate and shareholder values,” the group said. “Aju Co. will focus on subsidiary management and new investments, seeking management efficiency and risk reduction to establish corporate governance for long-term growth.”

The group has 47 affiliates including Aju Networks, a South Korean dealer of Jaguar Land Rover Automotive Plc., and Aju IB Investment Co., a financial unit. Chairman Moon Kyu-young, the eldest son of the late group founder Moon Tae-sik, has been managing the entire group.

Aju Corp. is led by Chief Executive Officer Park Sang-il, a veteran in the ready-mixed concrete industry while Aju Co. is managed by Yoo Jae-Hyeong, a former executive at IBM Korea.

Moon Yoon-hoi, the chairman’s eldest son, is managing Aju Continuum, an investment unit.

Write to Dae-Kyu Ahn at powerzanic@hankyung.com
Jongwoo Cheon edited this article.