Daewoo Shipbuilding & Marine Engineering Construction Achieves Two-Grade Credit Rating Increase in Public Sector Following Private Sector Success

[Asia Economy Reporter Jang Hyowon] Daewoo Shipbuilding & Marine Engineering Construction has seen its credit rating rise in the credit rating evaluation conducted this month by the public sector Housing & Urban Guarantee Corporation (HUG), following the credit rating evaluation conducted by a private credit rating agency in April.

Daewoo Shipbuilding & Marine Engineering Construction (Chairman Kim Yongbin), a subsidiary of Korea Technology, a KOSDAQ-listed company, announced on the 29th that it received an A- rating, two levels higher than before, in the corporate credit rating evaluation conducted by HUG on the 20th.

This improvement is due to the enhanced financial condition resulting from successful orders in various business sectors, including public and private construction projects as well as renewable energy such as offshore wind power, based on transparent and stable accounting management.

Additionally, the establishment of an ESG Management Committee, which is rare for a KOSDAQ-listed company, practicing social contribution, governance improvement, and transparent management, is also one of the reasons for the credit rating upgrade.

According to the HUG credit rating certificate, Daewoo Shipbuilding & Marine Engineering Construction recorded a sales growth rate of 42.86%, a significant improvement compared to the 34.23% sales growth rate in 2019.

Furthermore, the net profit growth rate increased by 59%, operating profit margin rose by 6%, and the debt ratio decreased by 107.84%, showing explosive growth.

Seo Boknam, CEO of Daewoo Shipbuilding & Marine Engineering Construction, stated, “Currently, Daewoo Shipbuilding & Marine Engineering Construction has succeeded in continuous orders in various fields, with order volume tripling compared to the previous year. The credit rating increase is expected to positively influence orders, allowing us to secure even more work in the second half of the year than in the first half.”

He also expressed his ambition, saying, “We will continue this virtuous cycle to achieve our annual order target of 1.8 trillion KRW and aim for an A+ rating from both private credit companies and public institutions next year.”

Meanwhile, amid growing public concern about safety following the large-scale fire at the Coupang logistics center, Daewoo Shipbuilding & Marine Engineering Construction’s patented “eco-friendly, fire-retardant, and semi-noncombustible building materials,” for which it holds exclusive implementation rights, have been reappraised. On the 21st, the company signed a business agreement with EM&I Co., Ltd. to introduce a fire safety movie system, attracting industry attention.