[Alpha Biz= Paul Lee] South Korea’s leading construction companies generally achieved stable topline performance last year, but profitability showed sharp divergence, with several major players posting declines in operating profit or slipping into losses.

According to industry data released Friday, the combined revenue of seven major builders—Samsung C&T’s construction division, Hyundai Construction (including Hyundai Engineering), Daewoo Engineering & Construction, DL E&C, GS Engineering & Construction, POSCO E&C, and HDC Hyundai Development Company—totaled KRW 84.17 trillion in 2024.

Industry leader Samsung C&T’s construction unit reported revenue of KRW 14.15 trillion and operating profit of KRW 536 billion, down 24.2% and 46.4% year-on-year, respectively. The decline was attributed to reduced construction volume following the completion of large in-house high-tech and semiconductor projects. The company said a recovery in the semiconductor cycle could support future performance.

Hyundai Construction, the second-largest builder, posted revenue of KRW 31.03 trillion, down 4.9%, but returned to profitability with operating profit of KRW 653 billion. The company said its shift toward higher value-added projects, including nuclear power and renewable energy, helped offset market headwinds.

By contrast, Daewoo Engineering & Construction recorded revenue of KRW 8.05 trillion, down 23.3%, and an operating loss of KRW 815 billion. The company cited rising unsold housing inventory in regional markets and higher cost ratios at some overseas projects as key factors behind the downturn.

Analysts said builders with stronger exposure to domestic urban redevelopment projects and tighter cost controls were better positioned to defend margins, while those facing overseas cost inflation and weak regional housing demand struggled.

 

 

 

[ⓒ 알파경제. 무단전재-재배포 금지]