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Photo = Yonhap news |
[Alpha Biz= Paul Lee] Amid a prolonged construction market slump, one in four of South Korea’s top 100 construction firms posted operating losses last year. Many of them also showed signs of financial distress due to excessively high debt ratios.
According to a review of business and audit reports from the top 100 construction firms based on construction capability evaluations, 25 companies recorded operating losses in 2024 on a separate financial statement basis.
Among those, 12 firms ranked within the top 50 in construction capability suffered losses, including:
- Hyundai Engineering & Construction (No. 2 in capability ranking): KRW 215.5 billion loss
- Hyundai Engineering: KRW 1.5046 trillion loss
- Jungheung Construction: KRW 67.4 billion loss
- Kolon Global: KRW 52.4 billion loss
- Kumho E&C: KRW 183.6 billion loss
- Dongbu Corporation: KRW 99.6 billion loss
- Taeyoung E&C: KRW 71.3 billion loss
- Shinsegae Engineering & Construction: KRW 123.9 billion loss
- Xii C&A: KRW 1.1 billion loss
- HJ Shipbuilding & Construction (Construction division): KRW 22.4 billion loss
- Jinheng Construction: KRW 4.8 billion loss
- Yangwoo Construction: KRW 12.8 billion loss
- Among firms ranked 51st to 100th, 13 recorded operating losses, including:
- Xi S&D: KRW 12.7 billion loss
- Il Sung Construction: KRW 44.5 billion loss
- Shindongah E&C: KRW 73.6 billion loss
- LT Sambo: KRW 34.3 billion loss
- Keum Sung Baekjo Housing: KRW 800 million loss
- Ace Construction: KRW 44.2 billion loss
- Sambu Construction: KRW 95 billion loss
- Bokwang Construction: KRW 16.3 billion loss
- Isu Construction: KRW 63.5 billion loss
- Fine Construction: KRW 48.8 billion loss
- Hanyang Industry Development: KRW 59.2 billion loss
- Utop Construction: KRW 900 million loss
- Bomi Construction: KRW 24.4 billion loss
The data reveals the extent to which the construction industry has been impacted by rising costs, sluggish housing demand, and deteriorating financial conditions, raising concerns about broader economic implications if the trend persists.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
