Mid-sized Construction Companies Leading the Market in Yodong: Performance Rankings

Daelim Construction Leaps to 17th Place with Merger
Dongbu Construction Advances 15 Ranks Returning to Housing Market

Daelim Construction CI

[Asia Economy Reporter Lee Chun-hee] This year, the rankings of mid-sized construction companies in the domestic construction capacity evaluation have seen significant fluctuations.

According to the '2020 Construction Capacity Evaluation' data released by the Ministry of Land, Infrastructure and Transport on the 30th, the total construction capacity evaluation amount for civil engineering and architecture projects this year was 258.1356 trillion KRW, a 3.7% increase from last year's 248.8895 trillion KRW. The construction capacity evaluation is a system that comprehensively assesses construction performance, management status, technical capability, and credibility to help clients select appropriate construction companies. It is announced at the end of July each year and applied from August 1.

The most notable rise in ranking was recorded by Daelim Construction. Samho and Goryeo Development, which were ranked 30th (1.3064 trillion KRW) and 54th (623.9 billion KRW) respectively in last year's construction capacity evaluation, recently merged to form this company. This year, with an evaluation amount of 1.8089 trillion KRW, it jumped 13 places from Samho's previous ranking to 17th. This is similar to the expected ranking at the time of the merger.

Dongbu Construction, which declared its re-entry into the housing business last year by resuming advertising for its housing brand 'Centreville' after nine years and has been actively expanding its business, also made significant progress. It rose 15 places from 36th last year to 21st this year.

On the other hand, some companies experienced a sharp drop in ranking. Booyoung Housing's evaluation amount halved from 2.0503 trillion KRW last year to 985.7 billion KRW this year. Its ranking fell by as much as 26 places, the largest drop among the top 100 companies.

An industry insider said, "Although other evaluation items also showed poor results, the biggest factor was that the management evaluation amount, one of the evaluation items, was recorded as zero," adding, "The management evaluation amount is derived by multiplying the actual capital by the management score, and the management score recorded zero points."

Last year, Booyoung Housing's management evaluation amount was 806 billion KRW, but with this amount completely disappearing, its ranking plummeted. Given that the management evaluation amount considers interest coverage ratio and net profit margin, it can drop to zero if the deficit is large. According to the Financial Supervisory Service's electronic disclosure, Booyoung Housing recorded a net loss of 134.4 billion KRW at the end of last year.

Most large construction companies in the top 10 maintained their rankings. Samsung C&T led with 20.8461 trillion KRW, followed by Hyundai Engineering & Construction, Daelim Industrial, and GS Engineering & Construction holding the 1st to 4th places. Hyundai Engineering, Lotte Engineering & Construction, and HDC Hyundai Development also ranked 7th to 9th respectively, as they did last year.

However, POSCO Engineering & Construction rose to 5th place, pushing Daewoo Engineering & Construction down one spot from 5th last year. SK Engineering & Construction, which fell out of the top 10 for the first time since 2006 by ranking 11th last year, re-entered the top 10 this year.

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