Soccer Federation President Faces Backlash Amid HDC Hyundai’s Financial Woes

Chung Mong Gyu, Chairman of the Korea Football Association and HDC Group, is under heavy criticism after the 2023 AFC (Asian Football Confederation) Asian Cup in Qatar yielded disappointing results, leading to a failure to qualify for the main round of the Paris Olympics.

Amidst relentless demands from soccer fans for his resignation due to inadequate football administration, the Q1 performance of HDC Group’s main business, construction, has been announced, drawing attention. The results, however, are also disappointing.

On the 26th of last month, HDC Hyundai Industrial Development announced a Q1 consolidated turnover of $846.8 million and an operating profit of $369,000. These figures represent a decrease of 11.1% and 17% respectively compared to the same period last year. Net profit for the period was $27 million, a 24.6% decrease from the same period last year.

HDC Hyundai Industrial Development analyzed, “The downturn in the real estate market had a significant impact on the poor performance of the housing business.”

However, securities firms expect HDC Hyundai Industrial Development to strengthen its growth as the year progresses. This is because numerous large-scale development projects are planned.

HDC Hyundai Industrial Development’s’ Kwangwoon University Station Area Development Project in Wolgye-dong, Nowon-gu, Seoul, which is currently being focused on, passed the architectural review a few days ago. This will include apartments and hotels of up to 49 floors, with a scale of 3,072 units.

Other projects in the pipeline include the Gongneung Station area, Yongsan Station railway land, Jamsil Sports·MICE, and Cheongna Medical Complex Town.

Chairman Chung Mong Gyu has been more frequently seen at soccer-related schedules than at official HDC Hyundai Industrial Development schedules or construction sites, despite having businesses that should be riding the wind.

On the 25th of last month, Sheikh Salman, the AFC Chairman, visited South Korea. Chairman Chung Mong Gyu hosted a welcome dinner immediately after Salman’s arrival to discuss matters related to the AFC Awards and Conference to be held in South Korea at the end of October.

He also visited the Korea Football Center construction site in Cheonan, Chungcheongnam-do, and explained the progress to Sheikh Salman. He exchanged pennants with the AFC and KFA and presented Sheikh Salman with a framed Korean national soccer team uniform. In the photos released by the Football Association, Chairman Chung Mong Gyu was seen smiling brightly throughout.

By observing Chairman Chung Mong Gyu’s recent activities, the netizens could not hide their anger, with comments such as “His company management skills are mediocre, he’s the least successful in the Hyundai family, and the only place he can show off is the Football Association,” “Take responsibility for the Olympic qualifiers failure and leave,” “I hope HDC gets audited heavily this year,” “He wishes to be the Chairman of the Football Association with a concern about his image than Korean soccer.” Meanwhile, Chairman Chung Mong Gyu has been in the position of Chairman of the Korea Football Association for over ten years since his inauguration in 2013. When he was the President of the Korea Professional Football League, he previously contributed to the soccer industry by resolving the match-fixing scandal and establishing the promotion and relegation system. However, with the fatigue from his long-term rule and shocking performance records such as 4th place in the Asian Cup and Failure to qualify for the Olympics for the first time in 40 years, there have been relentless demands for his resignation from all soccer-related positions both within and outside the soccer community.