Chairman Lee Joong-keun of Booyoung Group.

Booyoung Group, a mid-tier conglomerate active mainly in the housing rental business, is diversifying its portfolio by purchasing office buildings and recreational facilities. 

It has spent more than 1 trillion won ($829.5 million) in the last three months buying several pricy real estate properties, including a sizable industrial site in Incheon, a resort town in Taebaek, Gangwon Province, and a golf course in Anseong, Gyeonggi Province. Booyoung took industry observers by surprise last month by purchasing Samsung Life's iconic building in central Seoul for 580 billion won and was recently named as the priority bidder for the sale of the Samsung Fire Building in Eulziro, downtown Seoul. Booyoung was said to have bid 430 billion won for the building in an open bidding on Aug. 3. Booyoung plans to conclude the purchase of Samsung Fire Building by the end of this month by signing an MOU with Samsung Fire and Marine Insurance Co. to buy the building. 

Booyoung spent a total of 1.5 trillion won to buy some of the best buildings in Seoul in the past five years, to the surprise of the real estate business community in Korea. 

After taking over the building, the real estate dealer plans to lease its office space. They expect demand for the space to be tight, as it is located near the No. 1 exit of the No. 2 Subway Line at the entrance of the Eulziro thoroughfare in the heart of downtown Seoul. Samsung Fire Building, with four underground floors and 21 stories above ground, has a total space of 54,653 sq. meters and has a book value of 173.7 billion won. Booyoung officials said the building, like Samsung Fire Building, would be hard to buy in normal times, but it was put up for sale as Samsung Fire and Marine Insurance has been in the middle of financial restructuring. Booyoung's headquarters are located behind the Samsung Life building that lies along Sejong-Daero, a major thoroughfare stretching between Seoul Station and Gwanghwamun Plaza. 

Booyoung officials are reluctant to put too much meaning into the purchase of the Samsung building. Yet market observers consider it a part of the company's effort to make a "second leap forward." 

"Booyoung's combined assets have bloated to 16 trillion won through a series of buyouts of buildings, land and other real estate," an industry observer said. "It has struck as many as four deals since October, for which it spent more than 1 trillion won. It's an expansion made at an unprecedented speed." 

Booyoung's assets reached 10.6 trillion won in 2014, with a debt-to-equity ratio that stands at 362 percent, according to the Financial Supervisory Service. Its rank by assets jumped to 19th last year, up from 36th in 2004. Founded in 1983, Booyoung has grown rapidly with successful apartment projects for low- and middle-income earners. In 2011, it took over a recreational resort in Muju, North Jeolla Province, for 136 billion won and acquired a plot of pricy land in central Seoul for 175 billion won the following year. In 2015, the group opened a luxury golf resort on Jeju Island and is working to build tourist hotels in Seoul. Further, the company is in talks with the government to build a large-scale theme park in the Busan-Jinhae Free Economic Zone. 

Booyoung Group Chairman Lee Joong-keun has awarded 400 million won ($357,557) in scholarships to foreign students in Korea. A total of 100 Asian and African students studying at Korean universities are being granted the scholarships. According to a Booyoung Group official, the foundation established by the group held a scholarship award event at a conference hall of the Korea Chamber of Commerce and Industry building in Jung-gu, central Seoul, recently.  A total of 150 people, including foreign students from 13 countries and their ambassadors, participated in the event. Former Prime Minister Han Seung-soo also joined the event. "I hope the scholarships can help students achieve their academic goals, giving them the foundation to become global leaders," said Lee. "We at Booyoung Group will stay active in supporting future talent in education and culture." 

The foundation was established with Lee's funding in 2008. It has granted scholarships twice a year to foreign students from Asian and African countries such as Vietnam, Thailand, Laos and Kenya since 2010. So far, 992 students have benefitted with a total of 3.8 billion won in scholarships. In February, Booyoung Group donated 5,000 digital pianos and 50,000 blackboards to local elementary schools in the Philippines. Since 2004, it has made donations to 18 countries, including Vietnam, Laos and Rwanda, amounting to 60,000 digital pianos and 600,000 blackboards worth approximately 500 billion won ($419 million) in investment.

A view of the Samsung Life Building near South Gate in Seoul, bought recently by Booyoung Group.(Photos: Booyoung Group)