2025 New Year's Address
"Survival as Agents of Change and Innovation"
"Raising New Year's Management Goals"
Emphasis on Establishing a 'Manual' Culture
Park Sang-shin, CEO of DL E&C, urged employees to use cash flow as a decision-making indicator when promoting business this year, and to secure risk management capabilities and competitiveness by division. He also called for completing differentiated competitiveness based on manuals that can incorporate even competitors' know-how.
In his New Year's address on the 2nd, CEO Park stated, "I hope everyone will overcome the crisis with one heart and one mind and become the agents of change and innovation."
He analyzed the recent construction industry downturn as "an unprecedented situation where all negative factors are appearing simultaneously," expressing concern that "the crisis in the construction industry starts with worsening cash liquidity, and if losses cannot be prevented, it will no longer be sustainable."
Therefore, he emphasized that all business promotion must be judged based on cash flow. CEO Park said, "We must establish thorough plans not only for stable cash flow from new orders but also for all funds invested in unstarted and ongoing projects," adding, "Unnecessary and non-urgent investments should be boldly stopped, and fixed cost expenditures minimized."
He also stated that all businesses must secure sufficient profitability in a risk-free form. While in the past orders and sales were based on capital and brand advantages, now it is necessary to distinguish "profitable businesses" based on risk management capabilities. He said, "From now on, our risk management competitiveness will be properly tested in the market," and urged, "Please secure the competitiveness of each division to ensure the acquisition of high-quality construction volume."
Furthermore, he encouraged early establishment of a culture where work is done and evaluated according to manuals that concentrate competitiveness and know-how. CEO Park pointed out, "To develop manuals that can deliver the greatest utility, we must incorporate not only lessons learned from past tasks but also the know-how of partners and competitors."
He concluded, "Based on confidence that we will definitely overcome the current crisis, we have set all management goals for the new year?orders, sales, operating profit, cash flow?higher than last year's performance. Let us overcome the crisis, create results, and prove our own competitiveness and vision."
The following is the full text of the New Year's address.
To all DL E&C employees, the new year of 2025, the Year of Eulsa, has dawned. First, I would like to express my deep gratitude to all employees who have done their best in their respective positions over the past year.
Looking back on last year, it was a year of running without a moment to breathe to respond to the rapidly changing business environment. Due to global and domestic political turmoil, uncertainty has increased, and domestic construction conditions have faced the worst situation, with internal and external business conditions worsening.
Since early last year, we have been re-examining the risks of all ongoing projects in anticipation of a prolonged downturn in the construction industry. Although we have mentioned various crises in the past, the recent situation is an unprecedented one where all negative factors are appearing simultaneously.
In the new year, domestic economic recession and market uncertainty are expected to increase, and the construction market is forecasted to deepen its downturn. The crisis in the construction industry begins with worsening cash liquidity, and if losses cannot be prevented, it will reach a point where it can no longer endure.
Looking back over the past 85 years, DL E&C has spent time overcoming countless recessions and adversities rather than experiencing glamorous growth. Because of these strenuous efforts and dedication to fundamentals, we have established ourselves as the oldest construction company in Korea.
I believe in our resilience to overcome any difficulties. I ask everyone to overcome the crisis with one heart and mind and become the agents of change and innovation, and I would like to make a few requests.
First, all business promotion must be judged based on cash flow. Cash flow should be an important decision-making indicator for determining business progress. We must establish thorough plans not only for stable cash flow from new orders but also for all funds invested in unstarted and ongoing projects. Additionally, unnecessary and non-urgent investments should be boldly stopped, and fixed cost expenditures minimized.
Second, all businesses must secure sufficient profitability in a risk-free form. In the past, orders and sales were pursued based on capital and brand advantages, but now we must distinguish "profitable businesses" based on risk management capabilities. From now on, our risk management competitiveness will be properly tested in the market, and we must secure the competitiveness of each division to acquire high-quality construction volume based on differentiated competitiveness.
Third, we must complete differentiated competitiveness based on manuals. Manuals are the result of concentrating all our competitiveness and know-how so far, and they must be developed into manuals that can deliver the greatest utility. To do this, we must incorporate not only lessons learned from past tasks but also the know-how of partners and competitors. I ask all employees to actively participate so that a culture of working according to manuals, producing results, and being evaluated can be established early and manifested as our competitiveness.
Employees, we will continue to challenge, survive, and become stronger. Based on confidence that we will definitely overcome the current crisis, we have set all management goals for 2025?orders, sales, operating profit, cash flow?higher than the 2024 performance. We must overcome the crisis, create results, and prove our own competitiveness and vision.
In 2025, let us all unite as one to maximize the potential capabilities of each employee and make it a meaningful year of new leaps forward.
Finally, I wish health and happiness to you and your families. Thank you.
January 1, 2025
CEO Park Sang-shin
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