Dongkuk Steel Posts Q3 Operating Profit of 24.5 Billion Won, Up 14% YoY

Profitability Maintained Despite Weakness in Long Products Segment
Dongkuk CM Posts 5.2 Billion Won Loss, Accelerates Portfolio Restructuring

Dongkuk Steel Group has minimized the decline in its performance by maintaining a profitability-focused business strategy, even amid a slowdown in the steel market.

On October 31, Dongkuk Steel (CEO Choi Samyoung) and Dongkuk CM (CEO Park Sanghoon) each announced their preliminary results for the third quarter of 2025. On a standalone basis, Dongkuk Steel reported third-quarter sales of 769.2 billion won, operating profit of 24.5 billion won, and net profit of 10.1 billion won. Compared to the same period last year, sales decreased by 8.3%, but operating profit increased by 14.0% and net profit rose by 5.8%. Compared to the previous quarter, sales declined by 13.9% and operating profit dropped by 18.1%, while net profit increased by 9.6%.

The company explained, "Despite weakened demand from downstream industries, we maintained profitability by continuing a sales strategy focused on profit." The company's core business, the long products segment, saw a decline in product prices and reduced production and sales due to sluggish construction demand. In the heavy plate segment, domestic sales conditions improved and production and sales increased, as the government strengthened anti-dumping tariffs, reducing the inflow of low-priced imports.

In the third quarter, Dongkuk Steel expanded its export base by newly acquiring Singapore's SGBP eco-friendly certification for coil rebar and expanding the range of H-beam products certified by Thailand's TIS. The company also launched square tube and steel pipe sales services on its e-commerce platform, Steelshop, thereby broadening the scope of online steel transactions. In the heavy plate segment, Dongkuk Steel is developing ultra-thin rolling technology and is currently testing the development of "wide clad plate" (thick and wide composite steel plate).

Meanwhile, Dongkuk CM posted standalone sales of 485.1 billion won, an operating loss of 5.2 billion won, and a net loss of 2.3 billion won. The company swung from a profit to a loss compared to the same period last year, but the deficit narrowed compared to the previous quarter. Production and sales volumes declined due to a slump in demand from industries such as construction and home appliances, as well as expanded tariffs resulting from strengthened protectionism.

The company implemented profitability-oriented restructuring by halting operations of one electro-galvanized steel sheet (EGI) line with weak demand, and reorganized its sales portfolio to focus on high value-added products.

Additionally, Dongkuk CM developed "Dual Stone," the world's first three-dimensional textured color steel sheet that can fully replace natural stone. The company is also focusing on expanding its differentiated design steel business, collaborating with British architect Thomas Heatherwick to present the "Humanize Wall" at Seoul's Open Songhyeon Green Plaza, based on its premium color steel product, Luxteel.

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