Korea's top resort corporations Daemyung Sono Group is moving closer to securing management rights for T'way Air while attempting to leap towards becoming a comprehensive tourism corporation. Owner second-generation Chairman Seo Jun-hyuk is seeking new growth engines for Daemyung Sono Group through not only synergy effects from entering the aviation industry but also diversification into businesses such as sports and funeral services.
Daemyung Sono Group is a traditional powerhouse in Korea's resort and leisure business. It has solidified its position by introducing a popular and accessible resort culture, led by Vivaldi Park. Recently, the company has accelerated its global expansion by actively acquiring overseas resorts and hotels and is launching various new businesses domestically, including sports and funeral services. The industry's attention is focused on Daemyung Sono Group's activities.
◇ Daemyung Sono Group popularizes Korea's resort culture
The history of Daemyung Sono Group began in 1979 when its founder, the late Seo Hong-song, established Daemyung Dwellings. At that time, Daemyung Dwellings primarily focused on housing construction. In 1986, it entered the leisure industry by opening the Vivaldi Park resort in Hongcheon, Gangwon Province.
Vivaldi Park emerged as a new form of leisure facility at that time, becoming a core business for Daemyung Group. In the late 1990s, it expanded its resort business and opened various resorts and hotels nationwide. Subsequently, it established its presence in the accommodation and leisure sectors by launching premium resort brands such as Sonofelice and Sonokam. In 2019, Daemyung Group changed its name to Daemyung Sono Group to strengthen its brand identity.
Daemyung Sono Group's holding company, Sono International, currently owns 18 hotels and resorts in Korea, with the number of operating rooms reaching over 11,000. The company is regarded as the leading corporation that established a popular resort culture with high accessibility in Korea.
Daemyung Sono Group's resorts have established themselves more as friendly and popular destinations rather than luxurious ones. This has allowed many domestic customers to enjoy the resorts without financial strain. The resorts have created an environment where various leisure activities can be enjoyed beyond just accommodation by combining lodging facilities with skiing and water parks.
Daemyung Sono Group's resilience became evident during the COVID-19 pandemic. Despite the significant impact on the tourism and leisure industries at that time, the company overcame the crisis through operational efficiency. In 2021, Daemyung Group recorded a consolidated revenue of 1.1 trillion won, surpassing the 1 trillion won mark for the second consecutive year. Based on this, it distributed a performance bonus of 15 billion won to all employees, boosting staff morale. However, Sono International saw its revenue decline to 926.1 billion won in 2022 and further to 847 billion won in 2023. This is attributed to its aggressive business expansion through domestic resort renovations and overseas resort acquisitions as cash flow improved.
Last year, Daemyung Sono Group was newly designated as a large corporation disclosure group by the Fair Trade Commission. The sharp increase in asset value, nearly reaching 600 billion won, was influenced by the revaluation of tangible assets (land) and an increase in advance payments (deposits). Its ranking within the corporate group placed it at 86th.
◇ Chairman Seo Jun-hyuk steps up his dream of entering the aviation industry… testing management capabilities
Daemyung Sono Group dreams of a leap into a comprehensive tourism corporation under the leadership of second-generation owner Chairman Seo Jun-hyuk. Chairman Seo, the eldest son of the late founder Seo Hong-song, completed the succession structure by becoming chairman of Sono International in February 2023, surpassing his sister and younger sister. As of the end of 2021, Sono International's stakes were mainly held by special related party individuals, including Chairman Seo's mother, Park Chun-hee, who owns 77.03% equity in the company.
Chairman Seo, who majored in economics at the University of Minnesota in the U.S., joined the group in 2007 and has been leading the resort and leisure sectors. In 2011, he served as the head of Daemyung Enterprise (currently DAEMYUNG SONOSEASON), gaining experience in subsidiary operations, and later expanded his management domain by leading investments and new businesses within the group.
Chairman Seo is prioritizing global expansion as a key strategy and has dreamed of entering the aviation industry since the mid-2000s. The renaming of Daemyung Hotels and Resorts to 'Sono Hotels and Resorts' in 2020 is part of his global strategy. Considering the difficulty of pronouncing 'Daemyung' in foreign markets, he changed the name to 'Sono,' which means 'ideal place' in Italian.
Entering the aviation industry is a long-held aspiration of Chairman Seo. While serving as the head of Daemyung Enterprise in 2011, Chairman Seo attempted to acquire T'way Air, which was on the market, but had to abandon the effort due to a price discrepancy with the selling party. It is only now, after 14 years, that he has been able to secure management rights for T'way Air.
Chairman Seo must prove his management capabilities as a second-generation owner through entering the aviation industry. If he successfully acquires and merges with another low-cost carrier (LCC) Air Premia, in addition to T'way Air, he could grow into an airline beyond that of LCCs. In the past, he attempted to enter the food service industry with brands such as Beggoback (fusion tteokbokki) and Mister Tandul (charcoal-grilled pork belly) when he was head of new businesses at Sono Hotels and Resorts in 2007, but he has received evaluations of not achieving clear results.
◇ Evaluation as a pragmatic leader who learned American-style capitalism
Chairman Seo is viewed in the business community as a pragmatic leader who has learned 'American-style capitalism.' His use of previously taboo strategies in Korean business, such as leveraging hostile takeovers (M&A) to push out existing management and dominate boards during the acquisition of T'way Air, has made an impact. He has been active in M&A, acquiring the Waikiki Resort Hotel from Korean Air last April, in addition to a professional basketball team, the Daywon Pro Basketball Team, in 2023.
Daemyung Sono is enhancing its sports marketing by operating the acquired professional basketball team (Goyang Sono Skygunners). The company is also actively promoting the hosting of sports events and marketing in connection with its resort and hotel business. In addition to resort and leisure, it is pursuing strategies to secure long-term revenue sources through entering the funeral service business. The funeral service sector is expected to form a stable customer base, providing sustainable revenue. Healthcare and eco-friendly businesses are also new business areas for Daemyung Sono Group, focusing on sectors that can create synergies with its existing tourism and leisure operations.
Daemyung Sono Group is aggressively buying hotels in global markets such as New York and Washington D.C. As the domestic market shrinks due to an aging population, the goal is to grow into a global hotel and resort corporation through overseas expansion. Industry insiders noted, 'If Daemyung Sono effectively combines its investment and management capabilities in the aviation sector, it could create new opportunities.'