IPARK Hyundai Development has improved both profitability and financial stability, continuing its upward performance trend thanks to the ramp-up of revenue from in-house projects and strong site performance.
The company reported on August 31 that its consolidated revenue for the second quarter of 2026 reached 914.6 billion won, with an operating profit of 122.7 billion won. This marks a 35.7% increase in revenue and a 53.1% increase in operating profit compared to the previous quarter, and a 52.9% increase in operating profit compared to the second quarter of last year. Net profit for the period was 83.7 billion won, up 69.8% from the previous quarter.
The operating profit margin for the second quarter was 13.4%, with a standalone margin of 13.7%. This marks the second consecutive quarter of double-digit operating profit margins, with quarterly operating profit exceeding 100 billion won for the first time since the second quarter of 2021.
The improvement in performance was driven by progress in high-quality project sites and increased revenue from in-house projects. The revenue share from large projects, such as Cheonan IPARK City and Paju Unjeong IPARK Forest, has increased, resulting in a rise in the gross profit margin for the external housing sector from 7.9% in the first half of last year to 16.4% in the first half of this year, an increase of 8.5 percentage points.
In the in-house housing sector, sales were bolstered by projects such as Seoul IPARK, Cheongju Gagyeong IPARK Complex 6, and Seosan Central IPARK.
Financial stability has also improved. The company reduced its net borrowings by 300 billion won compared to the end of last year, bringing the total down to 800 billion won, while PF contingent liabilities decreased by 33.4%, from 1.9339 trillion won to 1.2876 trillion won.
Additionally, the company plans to sequentially supply projects in the second half of the year, including Cheonan IPARK City Complexes 3 and 4, Cheongju Gagyeong IPARK Complexes 7 and 8, and Incheon City O.C.L Complex 9. The company aims to supply a total of 13,000 housing units this year.
IPARK Hyundai Development is also expanding its urban regeneration project contracts. Following the acquisition of the 585.2 billion won Seongnam Taepyeong District 3 project in July, the company plans to participate in the selection of construction companies for major regeneration projects in the second half of the year.
In the medium to long term, the company will begin construction on the Bokjeong Station area development project in the fourth quarter of this year, followed by sequential development of large-scale mixed-use projects in the Gongneung Station area, Yongsan Railway Hospital site, and Jamsil Sports & MICE.
Through these efforts, the company is expanding its mixed-use development projects centered around Seoul IPARK while enhancing its development and operational capabilities. However, securing tenants for commercial and hotel facilities and generating operational revenue remain challenges.
An IPARK Hyundai Development official stated, "We plan to continuously strengthen our portfolio centered on projects that can secure both profitability and growth. We aim to establish a stable business foundation through the expansion of urban regeneration projects and high-quality site supplies."
Meanwhile, Hyundai Development has decided to acquire and retire approximately 1.5 million shares, worth 30 billion won, to enhance shareholder value.
* This article has been translated by AI.
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