Poongsan decides not to sell ammunition business: FKI chief

JEJU ISLAND — Poongsan Group has decided not to sell its high-profile ammunition business, Federation of Korean Industries (FKI) Chairman Ryu Jin said Friday, dismissing persistent speculation that the defense unit could be put on the market as rising global demand boosts the company's earnings.

Ryu, who also serves as chairman of Poongsan Group, said the company had previously explored the potential value of the business, but decided to retain it because of its strong profitability.

"Poongsan's defense business is performing well, so we had discussed what it might be worth," Ryu told reporters during a press conference on the sidelines of the FKI CEO Summer Forum.

"However, we have decided not to sell it for now." Instead of divesting the ammunition business, Ryu said Poongsan plans to use the profits generated by its defense operations to pursue new service-sector investments for revitalizing regional economies.

He said the group is considering projects such as construction of golf courses and hotels outside the Seoul metropolitan area, describing them as part of the firm’s strategy ...