Daewoo E&C to Promote New Growth Business Through Merger of Three Subsidiaries

[Asia Economy Reporter Yoo In-ho] Daewoo E&C announced on the 23rd that it will launch a new integrated corporation by merging three subsidiaries?Prugio Service Co., Ltd., Daewoo ST, and Daewoo Power Co., Ltd.?to promote new growth businesses such as real estate development and smart homes.

The merger will be carried out by Daewoo ST absorbing Prugio Service and Daewoo Power. Daewoo E&C will hold 100% of the shares of the newly launched integrated corporation. An initial public offering will also be considered depending on the company's future growth.

The integrated corporation will operate with a total of six divisions and 22 teams, including management, asset development, AS, power generation, steel business, and production management. After the shareholders' meeting and merger registration, it will officially launch on June 1.

After its launch, the integrated corporation will operate an integrated PMO (Project Management Office) directly under the CEO to complete detailed integration tasks such as labor, HR, IT, and accounting within the year.

Under the vision of becoming a ‘Real Estate Total Care Service Company,’ the integrated corporation will promote real estate development, real estate operation and management, corporate material procurement agency (MRO) business, smart homes, facility O&M, and steel bridge and steel structure businesses. Daewoo E&C has selected real estate development, MRO, and smart home businesses as new growth sectors.

Through this, the integrated corporation plans to achieve sales of 245 billion KRW this year and 600 billion KRW by 2025.

A Daewoo E&C official said, “By utilizing Prugio Service’s construction and rental operation management know-how and Daewoo ST’s business management system, we aim to enter small- and medium-sized real estate development projects that are difficult for the parent company Daewoo E&C to access,” adding, “By merging three of the six subsidiaries in Korea, we have improved management efficiency and expect increased sales and a performance turnaround for the subsidiaries.”

This content was produced with the assistance of AI translation services.