Lee Eun-jae, Chairman of K-FINCO, "Strengthening Profitability Amid Construction Market Downturn"

Emergency Management Meeting Held by Jeonmun Construction Mutual Aid Association
Departmental Goal Review for Record-Breaking Performance

The Korea Federation of Specialized Construction Contractors (K-FINCO) held an emergency management meeting on the 26th at the Specialized Construction Hall in Dongjak-gu, Seoul, to review the goals and progress of each business department aimed at achieving the highest-ever management performance.

Eunjae Lee, Chairman of the Korea Federation of Specialized Construction Contractors (K-FINCO), is speaking at an emergency management meeting held on the 26th at the Specialized Construction Hall in Dongjak-gu, Seoul. / Photo by Korea Federation of Specialized Construction Contractors

At the meeting, K-FINCO Chairman Lee Eun-jae stated, "Amid concerns over a downturn in the construction industry due to a decline in orders, the rising prices of raw materials and wages, along with the ongoing high-interest rate environment, are making the management situation difficult for our members. To be a reliable support for the construction industry and our members, the federation must first strengthen its foundation of profitability," he emphasized.

K-FINCO is increasing its market share by attracting new high-quality members and revitalizing usage among existing members. The number of members exceeded 62,000, having increased by more than 1,100 companies in the first half of this year alone. This has led to an increase in capital contributions, which helps strengthen the federation’s financial soundness. The guarantee market share, which had fallen to 14.2% in 2021, has recently risen to 19.1% through continuous sales activities.

The sales division aims to achieve revenue of 219.7 billion KRW this year and has already exceeded the target by 6% as of last month. The asset management division secured stable high returns, achieving revenue in the 120 billion KRW range, which is more than 27 billion KRW above the maximum target of 97.3 billion KRW. K-FINCO plans to exceed its targets in the second half of the year by selectively investing in high-quality assets with high interest rates and actively managing them, anticipating increased uncertainty in the financial markets.

The profits earned through K-FINCO’s sales activities and investment management, as well as the costs saved through guarantee accident management, are returned as benefits to the members. Last year, K-FINCO realized a net profit of 115.9 billion KRW and returned 102.8 billion KRW of that as dividends to its members. Additionally, it practices win-win management with members by reducing construction machinery guarantee fees and providing special loans for construction stability.

Chairman Lee Eun-jae said, "Based on the results of the emergency management meeting, I hope all K-FINCO executives and employees will unite to achieve the highest-ever performance. We will increase the scale of profit returns to members based on the increased earnings to practice mutual cooperation and become a federation that provides even greater support in difficult times."

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