PR Center

Building on its return to profitability in 2023, Ssangyong Engineering & Construction (Ssangyong E&C) last year further cemented its recovery by posting a net profit.

On April 8, the DART disclosure system at the Financial Supervisory Service showed the company&rsquos consolidated operating profit increasing by 31.8%, from KRW 37.7 billion at the end of 2023 to KRW 49.7 billion last year. Net profits also rose by 50.3% over the same period, from KRW 43.9 billion to KRW 66 billion.

A modest revenue increase, from KRW 1.4715 trillion in 2023 to KRW 1.4931 trillion last year, is nevertheless meaningful in light of ongoing construction industry struggles and surging raw material costs. The company also made significant progress regarding financial stability, with debt ratio ping from 287% to 194%, an impressive achievement given the 2022 figure had stood at 842%. The current ratio also rose from 142% to 155%, with the cost ratio remaining stable at 92%, consistent with the previous year.

After being fully incorporated into the Global Sae-A Group, the implementation of rigorous cost controls boosted company profitability. Cash and cash equivalents increased to KRW 197 billion in 2024, continuing an upward trend from the 2022 figure of KRW 84.6 billion, and KRW 159.8 billion in 2023, a 133% rise over two years. This growth was driven by cost reductions in domestic housing and building projects, along with higher-value contracts and upfront payments from large-scale overseas projects.

With improved liquidity and firm financial foundations, Ssangyong E&C is now well-positioned to secure new orders. Earlier this year, the company was contracted for a luxury office tower project in Dubai, UAE, named IMMERSIVE TOWER. The project site is in the Dubai International Financial Centre district (DIFC), and the approximately KRW 320 billion contract (USD 230 million) was solely awarded to Ssangyong E&C. The client, DIFC, was established in 2004 and grew rapidly to become a leading financial hub for the Middle East, Africa, and Asia. By adding DIFC to its client portfolio, alongside other major players like the Investment Corporation of Dubai (ICD), WASL, and Emaar, Ssangyong E&C is seeing the results of its ongoing efforts to expand its client base.

In March last year, the company also secured contracts for two high-end residential projects at Dubai Creek Harbour. Located in what is emerging as Dubai&rsquos new residential hub, the Creek Waters 1 and 2 developments will each feature a 52-story residential tower with basement levels, offering 450 and 455 premium units, respectively.

Ssangyong E&C is also actively strengthening its domestic presence, in Seoul&rsquos urban renewal sector. At the end of last year, the company received the go-ahead for construction and remodeling of the Sindap Geukdong Apartment complex in Dongdaemun district. It was also ed as the contractor for a Block-unit housing renewal project in the Siheung-dong area of Geumcheon district.

New technology developments have also drawn significant attention. A prime example is SABU (SsangYong All-in-one BIM Utility), a proprietary software tool designed to optimize Building Information Modeling (BIM) on-site. It integrates CAD, BIM, and drone data into a simulation platform that enables pre-construction feasibility reviews.

Ssangyong is currently incorporating this new technology across several sites, driving down BIM-related software costs and enhancing processes for field personnel. Furthermore, a &lsquoQR code-based Digital Construction Management Platform&rsquo has also been developed, to improve construction quality and streamline workflow management, and is already in use for various domestic and overseas projects. Additionally, Mir Core, an onsite photo management platform, has been introduced on a pilot basis at five diverse project sites. This tool helps prevent data loss and further supports construction quality and progress-tracking.

A company official stated, &ldquoWith several bids in the pipeline for Dubai, Singapore, and other global projects, we will continue to solidify our position and expand international orders. We will also vigorously pursue domestic urban renewal opportunities, particularly in the Seoul metropolitan area where we can make a decisive impact.&rdquo