[2024 Asia Construction Awards] GS Construction Creates 30 Billion Won Win-Win Fund for Partner Financial Support

19th Asia Construction Awards
Asia Economy Representative Award - Win-Win Cooperation Category

GS Construction, which won the Asia Economic Representative Award in the Win-Win Cooperation category at this year’s Asia Construction Comprehensive Awards, is leading the way in establishing a practical and sustainable co-growth system by supporting partner companies with financial and safety education.

To build a co-growth system, GS Construction established a 30 billion KRW win-win fund with Shinhan Bank, KEB Hana Bank, and Woori Bank. This fund is used to support partner companies struggling due to COVID-19. Additionally, through the management support fund system, GS Construction lends money to partner companies facing short-term operational cash shortages.

The payment terms for partner companies are at the forefront of the construction industry. Payments to partners are made 100% in cash, and the payment date is maintained on the 10th of every month. Furthermore, GS Construction is identifying various system improvement measures to establish a fair subcontracting transaction order.

GS Construction is also committed to supporting partner companies for safe site management. In 2010, it established the first experiential Safety Innovation School among construction companies, where safety education is provided for on-site workers. In 2021, GS Construction abolished the lowest bid system, which posed a significant threat to on-site worker safety. When subcontracting contracts are awarded based on the lowest bid, partner companies are likely to neglect safety measures to secure profits. Instead, GS Construction introduced a fair competition bidding system that restricts awarding contracts to companies that distort prices. This system aims to eradicate reckless low-price bidding. Additionally, GS Construction mandates the assignment of dedicated safety managers for high-risk construction types to strengthen the safety capabilities of partner companies and supports the costs of these safety managers.

GS Construction also operates the ‘Xi CEO Forum,’ where representatives of partner companies meet directly with GS Construction’s top management to form a co-growth ecosystem. This forum has been held annually for 20 years since 2004 and is GS Construction’s representative co-growth activity. At this forum, excellent partner companies are awarded, and GS Construction’s management status is shared, creating a communication platform for win-win cooperation. In addition, GS Construction collects partner companies’ difficulties and suggestions through the ‘Xi Partnership’ and ‘SUBCON BOARD.’

The 'Xi CEO Forum' where GS Construction executives and partner company representatives meet, on-site scene from October last year.

GS Construction’s efforts in win-win cooperation have been recognized, as it was selected as the top-rated company for three consecutive years in the ‘Win-Win Growth Index Evaluation’ announced by the Win-Win Growth Committee. In July this year, it also received the highest grade for two consecutive years in the Ministry of Land, Infrastructure and Transport’s mutual cooperation evaluation.

A GS Construction official stated, "Win-win management is not a matter of choice but a necessity for sustainable management, and we are focusing on presenting concrete and practical measures from a long-term perspective. We will continue to strive to become an industry-leading company through win-win management."