Kangwon Land Operating Losses Cause Sighs at Gwanghae Management Corporation

Gangwon Land Headquarters Building. (Photo by Gangwon Land)

[Asia Economy Reporter Moon Chae-seok] Due to the sharp operating losses of Kangwon Land caused by the impact of the novel coronavirus infection (COVID-19), the financial condition of the major shareholder, Korea Mine Reclamation Corporation, is also expected to be affected.

According to the Mine Reclamation Corporation on the 8th, the corporation owns 36.27% of the shares of Kangwon Land, its investee company, and under international accounting standards, Kangwon Land's net profit or loss is reflected in the corporation's earnings.

An official from the corporation stated, "The net loss for the fiscal year 2020 is a temporary phenomenon resulting from equity method losses," and added, "If Kangwon Land's operations normalize as the COVID-19 situation settles, net profit is expected to turn positive from 2021 onward."

He further added, "The government-commissioned projects promoted by the corporation in 2021 will proceed without any setbacks."

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