Construction Companies' General Meetings Begin... Management Stability and New Business as Key Agendas

As the regular shareholder meeting season in March approaches, construction companies are showing busy movements. They need to find a breakthrough due to soaring interest rates, a surge in construction costs, and a slump in the housing business. Accordingly, each construction company plans to address amendments to their articles of incorporation aimed at stabilizing the management environment and diversifying their businesses as key agenda items at this shareholder meeting.

According to the Financial Supervisory Service's electronic disclosure system on the 15th, starting with Samsung Engineering on the 16th, ▲Samsung C&T on the 17th ▲POSCO Engineering & Construction on the 20th ▲Hyundai Engineering & Construction and DL E&C on the 23rd ▲GS Engineering & Construction, Taeyoung Engineering & Construction, and HDC Hyundai Development Company on the 24th ▲Daewoo Engineering & Construction, Kolon Global, and Gyeryong Construction Industry on the 28th ▲Hanwha Construction Division and Seohui Construction on the 29th will hold their regular shareholder meetings.

Samsung Engineering, DL E&C, and Daewoo Engineering & Construction Strengthen Their Boards

This shareholder meeting season, construction companies that are particularly focused on strengthening their boards stand out. First, Samsung Engineering plans to appoint Kim Yong-dae, representative lawyer of Law Firm Doul, and Hyun Gun-ho, head of the Plant Business Division, as inside directors. Lawyer Kim is expected to focus on strengthening the company's compliance management and expanding social responsibility, while Head Hyun will concentrate on enhancing competitiveness in plant EPC (Engineering, Procurement, and Construction).

DL E&C will appoint Professor Shin Jae-yong of Seoul National University’s College of Business Administration as an outside director. Professor Shin is known as an expert in management accounting, performance evaluation and compensation, and corporate governance. He plans to resign from his current outside director positions at Sindorico and HDC Hyundai Development Company.

Daewoo Engineering & Construction is reportedly set to propose the appointment of Kim Bo-hyun, vice president and son-in-law of Jung Chang-sun, chairman of the Jungheung Group, as an inside director. Since Kim’s employment restrictions will be lifted in April this year, it is highly likely that he will join as an inside director accordingly.

HDC Hyundai Development Company will resolve an agenda item to newly appoint Professor Choi Jin-hee of Korea University’s College of Business Administration, specializing in marketing, as an outside director. If approved, this will mark the first female outside director in the history of HDC Hyundai Development Company.

Hyundai Engineering & Construction Pushes New Businesses, POSCO Engineering & Construction Changes Name

Hyundai Engineering & Construction plans to amend its articles of incorporation at this shareholder meeting to include 'renewable energy electricity supply business and small-scale power brokerage business' as business objectives. This is about six years after adding 'solar power generation business and environmental management agency business' to its business objectives in 2017.

DL E&C added new items to its business objectives at last year’s shareholder meeting, including ▲all businesses related to the design, construction, and operation of carbon dioxide capture, utilization, storage, and carbon resource projects ▲greenhouse gas emissions trading business ▲high-pressure gas storage and transportation, hazardous materials storage and transportation ▲investment in new technologies, management and operation businesses, and startup support businesses.

POSCO Engineering & Construction is changing its name to support new growth businesses. It recently applied for a provisional registration of the trade name POSCO E&C at the Pohang branch of the Daegu District Court and plans to approve the related agenda at the shareholder meeting. POSCO E&C stands for environment (eco) and challenge. POSCO Engineering & Construction is focusing on new growth businesses such as hydrogen, offshore wind power, and eco-friendly construction with the goal of '2050 carbon neutrality.'

Hanwha has proposed adding about 50 new business items, including land and real estate development and railway and track construction businesses.

Mid-sized construction companies are also presenting numerous agenda items related to new businesses. IS Dongseo plans to expand its lithium carbonate line within the year and pursue a spent battery recycling business, submitting this agenda to the shareholder meeting.

KCC Construction plans to add construction engineering to its business objectives, while Gyeryong Construction Industry is seeking new revenue sources such as building, selling, operating, and leasing data centers.