'Southern Overlord' Hou Hsi-feng Returns to Kuo Yang Board After 28 Years; Hou Family's Second-Generation Succession Plan in Focus

(Central News Agency reporter He Xiuling, Taipei 9th) Kuo Yang Realty held its shareholders' meeting today and completed board elections, electing 6 directors and 3 independent directors. Among them, Kuo Yang Group founder Hou Hsi-feng and his daughter Hou Chia-chi were elected as directors, marking Hou Hsi-feng's return to the Kuo Yang board after 28 years. Market observers expect Hou Hsi-feng may be reinstated as chairman, and the second-generation succession plan of the Hou family is drawing significant market attention.

Kuo Yang Realty announced the list of elected directors: the 6 directors are Hou Hsi-feng, Hou Chia-chi, Kuo Yang Realty General Manager Peng Shao-ling, Ruan Jian-ping, Huang Guang-yu, and Yang Yong-hong. The 3 independent directors are Zhou Zhang-qin, Xu Miao-jing, and Lin Fang-qi.

Hou Hsi-feng is the founder of the Kuo Yang Group, known in the industry as the "Southern Overlord." His business empire spans construction, Hanshin Department Store, and Grand Hi-Lai Hotel. He resigned as chairman at the end of 1998 after Kuo Yang faced a financial crisis and subsequently stayed away from the board for many years. His re-election as a director has sparked market interest in Kuo Yang's future operational strategy, though he did not attend the shareholders' meeting today.

Discussing the recent housing market, Kuo Yang General Manager Peng Shao-ling pointed out that housing market control measures have been in place for about two years, significantly cooling buying sentiment. She described the construction industry as currently "neither loved by father nor mother," and attention is on whether the government might relax housing policies in the second half of the year.

Addressing the issue of rising construction costs, Peng said that last year construction costs rose by 10% due to increases in wages and raw material prices, with electromechanical equipment seeing the highest growth. Compared to pre-pandemic levels, costs have more than doubled, and overall costs have increased by as much as 80%.

She stated that Kuo Yang mitigates cost fluctuation risks through centralized procurement, such as centralized price negotiations for equipment like air conditioners and elevators. For elevators, with a procurement volume exceeding 100 units, prices can be locked in advance.

However, Peng noted that the most significant recent impact on Kuo Yang has been the "earthwork chaos," as disposal costs for excavated soil have risen, adding an average of NT$10,000 per ping (approx. 3.3 sqm). Another severe challenge is the labor shortage, as older local workers retire and young people are unwilling to enter the industry, widening the labor gap. While foreign workers can supplement the workforce, their work efficiency and skill levels still lag behind local skilled workers, offering limited help in cost reduction. (Editor: Zhang Liangzhi) 1150609