[Asia Economy Reporter Jang Hyowon] Daewoo Shipbuilding & Marine Engineering Construction, a subsidiary of Korea Technology, a KOSDAQ-listed company, announced on the 1st that it has decisively acquired 4,168,055 registered common shares (29.28%) through the 1st to 3rd stock auctions of the largest shareholder's holdings of Seongji Construction held at the Seoul Central District Court on the 31st.
Accordingly, Daewoo Shipbuilding & Marine Engineering Construction has become the largest shareholder of Seongji Construction. The second largest shareholder is Billion, holding 13.74%.
Currently, the management of Daewoo Shipbuilding & Marine Engineering Construction acquired the company in 2019 when its annual orders were around 260 billion KRW, and within three years raised the annual orders to about 2 trillion KRW, approximately eight times the previous level. They have also sufficiently demonstrated competitiveness in construction management by raising their credit rating by three levels this year.
In the construction industry, if Daewoo Shipbuilding & Marine Engineering Construction’s three-year restructuring experience can be applied identically to Seongji Construction, it is expected that Seongji Construction will recover to its former glory within three years.
A representative of Daewoo Shipbuilding & Marine Engineering Construction stated, “We have currently secured only the largest shareholder status of Seongji Construction,” and added, “We will seek management stability in consultation with the second largest shareholder and existing shareholders.”
He cited Daewoo Shipbuilding & Marine Engineering Construction, which succeeded in turnaround through the introduction of a transparent management system and restructuring, as an example, saying, “Based on our successful construction company operation experience, we will do our best to help Seongji Construction, with its 52 years of history, restore its former reputation.”
Meanwhile, Daewoo Shipbuilding & Marine Engineering Construction recently succeeded in consecutive order wins, early full sales, credit rating improvements, and financial stability, raising its order target for this year from 1.5 trillion KRW to 2.2 trillion KRW. In particular, through a recent shareholder meeting, they presented a concrete blueprint to enter the TOP 20 construction companies by 2024, drawing attention to whether this goal will ultimately be achieved.
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