Kumho Construction
Overview
Kumho Construction is a comprehensive construction company established in 1978, and a key affiliate of the Kumho Asiana Group. It has conducted business in various fields, including housing construction (apartment brand 'Kumho Eoullim'), civil engineering, plants, and overseas construction. In the late 2000s, it underwent a workout (corporate improvement work) due to the group's liquidity crisis, and has since been pursuing management normalization under creditor management. Recently, it is seeking a leap forward by expanding its own project sites and order volume.
Main Content
History
- 1978: Establishment of Kumho Construction Co., Ltd., launching the construction division of the Kumho Group.
- 1990s: Expansion of housing business, launch of the 'Kumho Eoullim' brand.
- 2000s: Increase in overseas plant and civil engineering orders, synergy with group affiliates such as Asiana Airlines.
- 2009: Due to the Kumho Asiana Group's liquidity crisis, affiliates including Kumho Construction entered a workout.
- 2015: Transition to a creditor joint management (voluntary agreement) system.
- 2020s: Expansion of sales of own project sites (Kumho Eoullim) and orders for urban maintenance projects.
Business Sectors
- Housing/Architecture: Apartments (Kumho Eoullim), officetels, remodeling, redevelopment, and reconstruction.
- Civil Engineering: Roads, bridges, railways, subways, dams, ports.
- Plants: Petrochemical, oil refining, power generation, environmental plants.
- Overseas: Plant and civil engineering works in the Middle East, Southeast Asia, Africa, etc.
Financial and Management Status
- Trend of reducing debt ratio and improving operating profit after the workout.
- As of 2023, sales of approximately KRW 1.5 trillion, operating profit turned to surplus.
- Credit rating: BBB- (2024, Korea Ratings) → recovery to investment grade.
- Major risks: Fluctuations in raw material prices, real estate market downturn, interest rate hikes.
Major Projects
- Domestic: Gwangju Sangmu District Kumho Eoullim, Sejong City 4-2 Living Zone, Busan Haeundae Kumho Eoullim.
- Civil Engineering: Seoul Subway Line 9, Incheon International Airport Railroad, Honam High-Speed Railway.
- Overseas: Baghdad Sewage Treatment Plant in Iraq, Nha Trang Power Plant in Vietnam.
Latest Trends
In 2024, Kumho Construction is on the verge of ending its workout. Having successfully fulfilled the voluntary agreement with creditors at the end of 2023, it is expected to officially graduate from the workout in the first half of 2024. Accordingly, it is accelerating new orders and expansion of its own projects. In particular, it has stood out in urban maintenance projects (redevelopment and reconstruction), surpassing KRW 1 trillion in cumulative orders in the first half of 2024. Additionally, to strengthen ESG management, it has announced a carbon neutrality roadmap and is promoting the introduction of eco-friendly construction technologies. However, profitability pressure continues due to high interest rates and rising construction raw material prices.
Related Topics
- [[Kumho Asiana Group]]
- [[Workout]]
- [[Construction industry in South Korea]]
- [[Kumho Eoullim]]
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