hankyoreh

The world’s oldest family-owned company, Kongo Gumi, has gone bankrupt 1,400 years after it was started in Japan by carpenters from the Korean kingdom of Baekje (Paekche).

The company’s executives filed for voluntary bankruptcy with the Osaka district court on July 26 and began bankruptcy procedures. Unable to overcome their 40 billion yen ($US 343 million) in debt, the company was sold to the Japanese construction giant Takamatsu in January and had its name changed to Keiji Construction.

Kongo Gumi began in 578 by three Baekje carpenters who were invited to Osaka to construct Shitennoji Temple, which today is one of the city’s famous landmarks. Legend has it that the three men turned to the Buddhist faith to comfort their homesickness and it was then that they started their temple construction business.

The debt the company faces is largely blamed on overly ambitious real estate purchases. Family members say the name Kongo Gumi, as well as the company’s temple construction and repair techniques, will still be passed on to future generations.