Fact Summary
Sambu Construction filed for court receivership (rehabilitation proceedings) on 2025-02-24 and received a commencement decision from the Seoul Bankruptcy Court on 2025-03-06. Following approval of the rehabilitation plan on 2026-06-26, the company sequentially implemented a 96.30% share consolidation (reverse split, 27:1), debt-to-equity conversion of rehabilitation claims, and a third-party allotment capital increase of KRW 33.0 billion. As a result, on 2026-07-14 the largest shareholder changed from Korea Asset Trust to Rebuild Sambu Holdings (84.24% stake). Trading suspension continues due to delisting grounds arising from consecutive audit opinion disclaimers for fiscal years 2024 and 2025, and the improvement period granted by the Korea Exchange is set to expire on 2026-08-20 (as of the reference date 2026-08-18, the review outcome has not been announced). Consolidated net income for H1 2026 (cumulative) turned positive at KRW 174.4 billion, while operating loss continued at KRW 8.1 billion (DART semiannual report, receipt no. 20260814004299).
Change Context Note
The closing price of KRW 347 on the reference date (2026-08-18) reflects no change from the previous day due to the trading suspension, and market capitalization was calculated using the pre-consolidation share count (229,681,824 shares) that took effect before the 96.30% reverse split effective 2026-07-01 — creating a timing mismatch with the actual post-consolidation capital structure. The turnaround to positive H1 2026 net income (KRW 174.4 billion), separate from the continuing operating loss (KRW 8.1 billion), is plausibly attributable to capital restructuring gains such as debt forgiveness gains from the rehabilitation plan approval on June 26, but the detailed breakdown by income statement item has not been confirmed.
Business Overview
Founded in 1955, the company is a general contractor comprising three business segments: domestic construction (civil engineering and building works including roads, subways, railways, power plants, dams, ports, bridges, and apartments), overseas construction, and steel business. It ranked 78th in the 2025 construction capability evaluation (contract ranking) with an evaluated value of approximately KRW 372.4 billion, but was reported to have fallen outside the top 100 in 2026 (Newsway and other media, C).
Rehabilitation Proceedings & Capital Restructuring Timeline
| Date | Event |
|---|---|
| 2025-02-24 | Filed for commencement of rehabilitation proceedings (court receivership) |
| 2025-03-06 | Seoul Bankruptcy Court issued commencement decision for rehabilitation proceedings |
| 2026-06-26 | Rehabilitation plan approved (passed at creditors' meeting) |
| 2026-07-01 | First share consolidation took effect (27:1, 96.30% capital reduction) |
| 2026-07-04 | Payment for 115,010,416 new shares issued via debt-to-equity conversion of rehabilitation/secured claims |
| 2026-07-14 | Third-party allotment capital increase took effect; largest shareholder changed to Rebuild Sambu Holdings (84.24% stake) |
| 2026-09-01 | New shares from debt-to-equity conversion scheduled to list (not yet listed as of reference date) |
As of reference date 2026-08-18 · Source: compiled from CBC News, Newsway, Investing.com and other media reports (C); the consolidation ratio is reported as 27:1 (some outlets show conflicting figures of 20:1, requiring cross-check against original disclosures)
Listing Eligibility Review Timeline
| Date | Event |
|---|---|
| 2024-08-16 | Disclaimer of opinion on 2024 semiannual audit → designated as administrative issue, trading suspended |
| 2025-04-01 | Disclaimer of opinion also issued on FY2024 annual audit report (2nd consecutive year) → delisting grounds arose, trading suspended |
| 2026-04-23 | Submitted request for review of improvement plan implementation and objection to delisting |
| 2026-05-21 | KOSPI Market Listing Disclosure Committee granted additional improvement period until 2026-08-20 |
| 2026-08-20 | Improvement period expiration (scheduled) — listing eligibility review outcome expected; not yet announced as of reference date (2026-08-18) |
Capital Restructuring — Before/After Comparison
Absolute paid-in capital figures vary across media reports (not confirmed); only the share count is presented as a confirmed fact.
Ownership Structure Change
Before/after reference date 2026-07-14 (third-party allotment capital increase effective date) · Source: Money Today (2026-06-29), Newsway (2026-07-14) (C). Minority shareholder ownership fell from 93.98% pre-rehabilitation through the 96.3% consolidation, debt-to-equity conversion, and capital increase. The remaining stake (approx. 11.57%) belongs to creditors allotted shares via debt-to-equity conversion, including DYD, CRK, Hyundai E&C, and LH Busan-Ulsan Regional Headquarters; individual final ownership percentages are not confirmed.
Board, Audit Opinion & Subsidiaries
Corporate Governance Report (receipt no. 20260601001464, received 2026-06-01, C) · All 4 subsidiaries (Sambu Renaissance, Sambu Renaissance The Hill, SI Naepo Industrial Complex Development, Sambu Pakistan) are in complete capital impairment, and equity-method valuation has been suspended (cited from 2026 semiannual report notes, C).
5-Year Financial Trend
| Period | Operating Margin | Net Margin | Debt Ratio (Liabilities/Equity) |
|---|---|---|---|
| 2021 | -1.2% | -0.7% | 152.5% |
| 2022 | -18.8% | -20.7% | 162.6% |
| 2023 | -13.6% | -19.3% | 403.0% |
| 2024 | -24.3% | -27.6% | 3,817.1% |
| 2025 | -24.0% | -69.1% | Capital impairment (not calculable) |
| H1 2026 (Cumulative) | -21.5% | 462.3% | 181.7% |
Debt ratio = total liabilities / total equity × 100 (A, direct calculation) · The standard debt ratio formula is not meaningful for 2025 due to negative total equity · The H1 2026 net margin of 462.3% reflects one-off gains and cannot be interpreted as a standard profitability metric
Peer Comparison
| Company | Construction Capability Evaluation Rank (2025) | Status | Market Cap Before Trading Suspension |
|---|---|---|---|
| Sambu Construction (001470) | 78th (approx. KRW 372.4 billion) | Rehabilitation plan approved (2026-06-26), under listing eligibility review | Approx. KRW 79.7 billion (pre-consolidation share count basis, 2026-08-18) |
| Beomyang Construction (002410) | 182nd | Rehabilitation proceedings (M&A method) commenced (decision 2026-01-16), Exchange determined delisting grounds apply | Approx. KRW 53.2 billion (as of 2026-04-07) |
Both companies' market caps are based on the last price formed before trading suspension and do not reflect current market value (C) · Source: compiled from Newsway and peer-related media reports
Valuation (Factual Multiples — Interpret with Caution)
The 96.30% consolidation on 2026-07-01 changed shares outstanding from 229,681,824 to 8,506,734, but the system-provided market cap is calculated based on the pre-consolidation share count, creating a mismatch with the current capital structure. Book value per share (BPS) for H1 2026, recalculated on a post-consolidation share count basis, is approximately KRW 8,935 — roughly 27 times the pre-consolidation-basis figure of approximately KRW 331 — a difference attributable to the consolidation ratio (27:1). Market-price-based multiple interpretation will only be possible following the listing of new debt-to-equity conversion shares and resumption of trading on 2026-09-01 (E).
Supply and Demand Status
Since the trading suspension began on 2025-04-01, the suspension has continued through the reference date of 2026-08-18 without resumption of trading. During this period, large-scale capital restructuring — including the 96.30% consolidation (2026-07-01), debt-to-equity conversion (2026-07-04), and third-party allotment capital increase (2026-07-14) — took place without any market trading. Trading trends by investor type (individual, foreign, institutional), foreign ownership ratio, short-selling balance, and margin loan balance are not available because trading-execution-based data does not exist due to the suspension.
Macro Environment
| Factor | Current Value (Reference Date) | Direction of Impact |
|---|---|---|
| Bank of Korea Base Rate | 2.75% (raised 2026-07-16) | Negative (-) |
| Domestic Construction Orders (June) | KRW 18.7 trillion (-21.7% YoY, private sector -41.5%) | Negative (-) |
| Construction Business Survey Index (CBSI, July) | 72.8 (-1.7p MoM) | Negative (-) |
| Nationwide Unsold Housing (end of June) | 67,464 units (+3.4% MoM) | Negative (-) |
| Rebar Producer Price (May) | +6.1% YoY | Negative (-) |
| Cement Producer Price (May) | -0.6% YoY | Positive (+) |
Source: Bank of Korea, Hankyung, Korea Research Institute for Construction Policy (CERIK), Ministry of Land, Infrastructure and Transport, and others (C, compiled from macro.md research) · Given its financial structure — a history of complete capital impairment and ongoing rehabilitation proceedings — Sambu Construction has relatively high exposure to changes in funding costs and order conditions (based on financial structure facts).
Key Points of Note
The improvement period is scheduled to expire on 2026-08-20, and the listing eligibility review outcome has not been announced as of the reference date (8/18).
The company has a history of complete capital impairment in FY2025 (total equity of -KRW 142.1 billion), and the turnaround to positive total equity in H1 2026 includes the effects of capital restructuring (consolidation and debt-to-equity conversion).
Minority shareholder ownership fell from 93.98% to 1.09% due to the 96.3% consolidation and large-scale debt-to-equity conversion and third-party allotment capital increase.
An additional 115,010,416 debt-to-equity conversion shares are scheduled to list on 2026-09-01 (not yet listed as of the reference date).
Chairman Lee Il-jun and other former and current executives are undergoing criminal trial over stock price manipulation allegations related to the 2023 Ukraine reconstruction project (hearing on 2026-08-14).
Overall construction industry conditions are weak, with the base rate hike (2.75%), sharp decline in private construction orders (-41.5%), and rising unsold housing inventory.
Theme Relevance
Fact Highlights
Generated by FomoLog Agent · Data sources: Korea Exchange · DART · compiled from news reports