GS Construction Reports Operating Loss of 388.4 Billion KRW Last Year... New Orders Down 37%

Operating Profit Turned Negative in 2023
Impact of Reconstruction Costs for Incheon Geomdan Apartments
This Year's Sales Target Set at 13.5 Trillion Won

GS Engineering & Construction recorded an operating loss of 388.4 billion KRW last year. This was due to the reconstruction costs of the apartment complex in Geomdan, Incheon being reflected as a loss.

On the 31st, GS Engineering & Construction announced that its sales last year increased by 9.2% year-on-year to 13.4366 trillion KRW. The operating loss was 388.4 billion KRW, and the net loss for the period was 419.3 billion KRW, marking a return to the red.

Reconstruction costs of 552.4 billion KRW related to the parking lot collapse accident at the Geomdan apartment complex last year were reflected. GS Engineering & Construction explained that they conservatively accounted for the cost ratio and construction period, including quality improvement and safety inspection activities.

Due to the sluggish real estate market, GS Engineering & Construction's new orders in 2023 decreased by 36.6% compared to the previous year, recording 10.184 trillion KRW.

By business division, sales in the Architecture and Housing Division increased by 9.7% to 10.237 trillion KRW, and the Infrastructure Division grew by 4.1% to 1.104 trillion KRW. The New Business Division's sales reached 1.414 trillion KRW, up 38.0% year-on-year, maintaining a stable growth trend.

Last year's new order achievements include ▲ Busan Citizen Park Promotion Zone 1 (900 billion KRW) ▲ UAE Shuweihat 4 Seawater Desalination Project (781 billion KRW) ▲ Busan Sasang~Haeundae Expressway (731 billion KRW) ▲ Saudi Yanbu Refinery SRU Upgrade Project (212 billion KRW), among others.

Fourth-quarter results last year showed sales of 3.321 trillion KRW, an operating loss of 193.7 billion KRW, and a net loss of 313.6 billion KRW. Compared to the same period last year, sales decreased by 15.3%, and operating and net losses returned to the red. New orders amounted to 2.515 trillion KRW.

GS Engineering & Construction has set this year's sales target at 13.5 trillion KRW and the new order target at 13.3 trillion KRW.

GS Engineering & Construction stated, "While managing the accidents that occurred under difficult external conditions last year, the results of a conservative cost re-evaluation through intensive reform were reflected. Moving forward, we will strengthen our foundation and internal stability to firmly establish the basis for a leap forward, focusing on redefining the business framework from a mid- to long-term perspective."

This content was produced with the assistance of AI translation services.