Seohui Construction said it has defended earnings on the back of a stable financial structure and expectations of policy tailwinds, reaffirming its position in the local housing cooperative market.
The company said Monday that it posted a debt-to-equity ratio of 49.6% last year and achieved operating profit of 144.4 billion won.
Seohui Construction said it increased capital while reducing debt, earning an assessment that its financial health ranks among the industry’s upper tier. As more builders see profitability squeezed by high interest rates and rising raw material costs, the company attributed its performance to a selective strategy focused on projects with stronger returns.
Market watchers say Seohui Construction could be a major beneficiary if a Housing Act revision under discussion at the National Assembly passes. The bill would ease the land-ownership requirement for local housing cooperative projects to about 80% from 95%.
The change could shorten project timelines and cut financing costs, raising expectations for broader activity in the sector. Industry officials expect Seohui Construction, which has built experience and management capabilities in such projects, to benefit directly from the policy shift.
A Seohui Construction official said the company uses an in-house feasibility analysis system to screen for strong project sites with a lower risk of conflict, adding that it expects a significant first-mover advantage after any policy revision.
The company is also broadening its portfolio beyond cooperative housing. Seohui Construction recently signed a construction contract for a small-scale housing redevelopment project in Mok-dong, Yangcheon District, entering Seoul’s redevelopment market. It was also named preferred bidder for zones 5 and 6 of the Siheung 5-dong Moa Town project in Geumcheon District, expanding its foothold in urban renewal.
Seohui Construction said it is widening its scope to include public housing, Moa housing and trust-based redevelopment projects. Another company official said it plans to strengthen product competitiveness through steps such as launching a new brand and to further solidify its position in urban redevelopment on the back of a stable earnings base.
* This article has been translated by AI.
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