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Photo = Doosan E&C |
[Alpha Biz= Reporter Kim Sangjin] Doosan Construction is experiencing a double blow with worsening financial performance and issues related to shoddy construction.
According to the construction industry on the 22nd, Doosan Construction recently had to lower the height of the emergency stairs at 'New Central Doosan We've The Zenith' in Bonri-dong, Dalseo-gu, Daegu. The height of the stairs between floors did not comply with building regulations, so the construction company cut about 16 cm from each stair to meet the standards. While the company claims it was a normal repair work, prospective residents are concerned about potential collapse risks and have requested the local government to deny approval for the building's completion.
Originally, the complex was scheduled for occupancy in February this year, according to the recruitment announcement for residents. However, Doosan Construction explained that the move-in was delayed due to labor supply issues stemming from an increase in construction volume in the Daegu area. With the additional repair work, the actual move-in date has become even more uncertain.
Apartment construction is a major revenue source for Doosan Construction, with the construction business accounting for 90% of its sales. Declining trust in construction quality could negatively impact future residential construction projects.
Doosan Construction is currently operating at a loss and is on a path to business normalization to achieve profitability. The company reported a net loss of 77.7 billion KRW last year. Although this was an improvement from the previous year's loss of 210.4 billion KRW, it still failed to achieve a positive annual net income.
The poor performance continued into the early part of this year. In the first quarter, the company recorded an operating profit of 26.2 billion KRW and a net profit of 12.8 billion KRW, representing declines of 18.4% and 26.9%, respectively, compared to the same period last year.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
