Dongbu Construction has announced plans to accelerate its focus on profitability and productivity during the second half of 2026.
The company held its "2026 Second Half Management Strategy Meeting" at its headquarters in Yeoksam-dong, Gangnam, Seoul, where it shared strategies for enhancing the execution of its management policy centered on profitability and discussed long-term growth plans.
Key executives, including CEO Yoon Jin-oh, and employees from both headquarters and field operations attended the meeting. Participants reviewed the internal and external business environment, including the construction and real estate markets, government policies, construction costs, and financial markets, and discussed the feasibility and execution plans for the second half based on first-half business performance and key issues.
To ensure that the expansion of new orders in the first half translates into stable revenue and profit, Dongbu Construction plans to strengthen its project management capabilities post-award. The company will closely examine project performance and cost appropriateness from the bidding stage and will manage schedules, costs, and cash flow in a linked manner after construction begins to enhance visibility into profitability throughout the project lifecycle.
The company will also selectively expand its business portfolio. Building on its competitiveness in public civil engineering and construction, it will focus on growth areas such as urban redevelopment projects, private construction, and advanced industrial facilities, while outlining a long-term growth path based on the market competitiveness and execution capabilities of each business division.
Productivity innovation was also addressed as a key issue. Dongbu Construction plans to reduce repetitive and redundant tasks and streamline decision-making processes, while leveraging AI and digital technologies to create an environment where employees can focus on high-value tasks. On-site, the company aims to enhance efficiency in schedule management and quality and safety management to achieve higher performance with the same resources.
As the construction market faces a slowdown and ongoing cost pressures, construction companies are shifting their management strategies from growth in scale to profitability management that connects awarded projects to actual profits.
CEO Yoon Jin-oh stated, "Our competitiveness cannot be evaluated solely by the scale of orders or revenue; it is only when we adhere to planned costs, schedules, and quality that we can achieve real results."
He emphasized, "Every organization must recognize profitability and productivity as their execution tasks, and even small improvements must be connected to results on-site."
In the first half of this year, Dongbu Construction recorded approximately 1.5 trillion won in new orders, the largest amount for the first half in its history, through selective orders focused on profitability and diversification of its business portfolio. The company has expanded its order base in public infrastructure, private construction, and urban redevelopment projects, securing a foundation for future revenue growth.
A Dongbu Construction official remarked, "In the second half, the focus will be on how stably we can execute the secured projects and convert them into profits, rather than the scale of orders itself. We will meticulously manage costs and risks from the start of projects to completion and continuously enhance productivity to establish a profit-generating structure that is resilient to market conditions."
* This article has been translated by AI.
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