Doosan Construction Secures 2.7 Trillion KRW in Orders Last Year... Surpasses 2 Trillion KRW for 3 Consecutive Years

by Roh Kyungjo

Published 10 Jan.2024 18:36(KST)

Doosan Construction announced on the 10th that it secured contracts for four projects worth 774.8 billion KRW, including the Jigeum·Donong 6-2 District Redevelopment Project, during the month of December last year.

Bird's-eye view of the Jigeum·Donong 6-2 District Redevelopment Project / Image courtesy of Doosan Construction

The projects include ▲Jigeum·Donong 6-2 District Redevelopment Project (310.5 billion KRW) ▲Dohwa 4 District Redevelopment Project (182.4 billion KRW) ▲Incheon Sinheung-dong Maintenance Project (161.7 billion KRW) ▲Dongseong Hightown Street Housing Maintenance Project (120.2 billion KRW).

As a result, Doosan Construction secured new projects totaling 2.5246 trillion KRW last year. Including design changes in ongoing projects, the total contract amount increased by approximately 27% compared to the previous year, reaching 2.699 trillion KRW. This marks three consecutive years of securing contracts exceeding 2 trillion KRW.

Doosan Construction’s new contract projects mainly consist of low-risk urban maintenance projects and simple subcontracting works. Urban maintenance projects are implemented by the association, and due to the allocation of units to association members, they carry less risk compared to self-developed projects. Subcontracting works allow for construction cost recovery through progress payments during the construction process. Additionally, Doosan Construction achieved full sales for projects it self-developed up to last year, minimizing risks related to real estate project financing (PF).

A Doosan Construction representative stated, "We have secured numerous high-quality projects considering sales performance and profitability, and we expect improvements in future sales and operating profits. Furthermore, to practice transparent management, we are making every effort to identify potential risks and take proactive measures, including conducting revaluation of non-operating tangible assets."