GS Geonseol Breaks Construction Slump Through 'Sangsaeng Cooperation'

[K-Construction, A New Leap] GS Construction
Financial Support for Partners Facing Short-Term Fund Shortages
Elimination of 'Lowest Bid System' for Safety
4 Consecutive Years as 'Top Company' in Win-Win Growth Index

GS Construction is seeking sustainability by expanding support for its partners despite the downturn in the construction market. It is transparently selecting partners and actively engaging not only in direct and indirect financial support but also in site management assistance and communication activities.

GS Geonseol Breaks Construction Slump Through 'Sangsaeng Cooperation'

Attending the 'Gran partnerS Fiesta,' Huh Yoonhong, CEO of GS Construction, and representatives of partner companies are exchanging opinions on win-win cooperation measures in a relaxed atmosphere.

GS Construction operates a financial support system for its partners. This program is designed to assist partners experiencing short-term operational fund shortages. It subsidizes 15 billion KRW annually as management support funds. Additionally, it has established a 30 billion KRW win-win fund with commercial banks to support interest payments on loans for its partners.

To create a safe construction site, GS Construction abolished the lowest bid system in 2021. The lowest bid system is considered a mechanism that can worsen the working environment on site. When subcontracting contracts are awarded to the lowest bidder, partners who need to make a profit are more likely to neglect safety compliance during work. Although GS Construction could have earned greater profits by using the lowest bid system, it abolished this system to ensure safer sites. Furthermore, it introduced a fair competition bidding system that restricts companies that distort prices in their bids. This measure aims to eradicate reckless low-price bidding.

For construction types with many risk factors, GS Construction mandates the placement of dedicated safety managers. It also supports the associated costs. The experiential Safety Innovation School, opened in 2010 as the first of its kind by a construction company to provide safety education for site workers, is now in its 14th year.

A representative win-win growth activity is the ‘Grand Partners Fiesta.’ Since its inception in 2004, this annual event brings together representatives from each partner company and GS Construction’s top executives to continue communication through awards for outstanding partners and sharing management status. In addition, various forms of meetings are held to explain GS Construction’s outsourcing system and to collect feedback on partners’ difficulties.

GS Construction’s efforts in win-win cooperation have been recognized, earning it the highest grade of ‘Excellent Company’ for four consecutive years in the ‘Win-Win Growth Index Evaluation’ announced by the Win-Win Growth Committee.

Internally, GS Construction continues ethical management activities by establishing systems to become a transparent and ethical company. It operates its own cyber whistleblower system to receive reports from both internal and external sources and conducts ethical management training for all employees. Since 2004, it has significantly strengthened and operated its internal audit organization. Campaigns such as ‘No Gift Acceptance,’ ‘Prohibition of Partner Stock Ownership,’ and ‘Reporting and Reward System for Unethical Behavior’ are also ongoing. In 2021, GS Construction introduced the Compliance Program (CP) for fair trade and established a dedicated department. CP activities aim to prevent legal violations and promote the internalization of a culture of voluntary compliance with fair trade. GS Construction was recognized for these efforts and was selected as an excellent company for two consecutive years at the ‘CP Forum.’

A GS Construction official stated, "Win-win and ethical management are not matters of choice but necessities, and we are focusing on presenting concrete and practical measures from a long-term perspective. We will do our best to become an industry-leading company in this field."