Fact Summary
Dongbu Corporation closed at KRW 8,040 on August 18, 2026 (-2.90% from the previous day). In H1 2026, the company posted consolidated revenue of KRW 1,030.7 billion (+24.3% YoY), operating profit of KRW 28.2 billion (+69.2%), and net income of KRW 39.1 billion (+266.5%) (Semi-Annual Report, receipt no. 20260813001475). In the 2026 Construction Capability Evaluation by the Ministry of Land, Infrastructure and Transport (MOLIT), the company ranked 25th in civil engineering and building construction (evaluated value KRW 2.0215 trillion), up three places from 28th the previous year (announced 2026-08-03). Cumulative new orders through end of July 2026 totaled approximately KRW 2.04 trillion (Newsway, 2026-07-31).
Change Context Note
The increase in H1 2026 net income was partly driven by an improvement in equity-method gains from affiliate HJ Shipbuilding & Construction, which swung from a loss of KRW 14.1 billion in the same period last year to a gain of KRW 18.2 billion (Herald Economy, 2026-08-14). Since turning from a consolidated operating loss of KRW 96.9 billion in 2024 to operating profit of KRW 42.6 billion in 2025, the company has maintained profitability through H1 2026 (Annual Report and Semi-Annual Report, receipt nos. 20250812000691, 20260316001362, 20260813001475).
Business Overview
Dongbu Corporation was founded in 1969 and listed on the KOSPI Market (Korea Exchange) in 1978. It is a general construction company operating through Construction, Logistics, and Other segments (2025 Annual Report, receipt no. 20260316001362). Its main revenue sources are contracted civil engineering, building, and plant construction, residential sales, and engineering services. In H1 2026, the company newly consolidated its Vietnamese subsidiary (DONGBU CORPORATION VINA LIMITED, 100% owned) (Semi-Annual Report, receipt no. 20260813001475, as of 2026-06-30). The revenue breakdown by business segment is not available, as the original figures could not be obtained in this research.
H1 2026 Results
| Item | Q2 (Standalone) | YoY Change |
|---|---|---|
| Revenue | KRW 596.1 billion | +44.3% |
| Operating Profit | KRW 18 billion | more than 10x vs. KRW 1.6 billion in the same period last year |
| Net Income | KRW 23.1 billion | turned profitable from a loss in the same period last year |
Source: Semi-Annual Report (receipt no. 20260813001475), OpinionNews (Q2 earnings coverage, 2026-08).
5-Year Financial Trend
| Period | Revenue | Operating Margin | Net Margin | Debt Ratio |
|---|---|---|---|---|
| 2021 | KRW 1.1449 trillion | 5.35% | 10.17% | 125.5% |
| 2022 | KRW 1.4612 trillion | 2.82% | 2.69% | 171.0% |
| 2023 | KRW 1.9 trillion | 1.59% | -0.26% | 211.3% |
| 2024 | KRW 1.6884 trillion | -5.74% | -6.37% | 264.7% |
| 2025 | KRW 1.7586 trillion | 2.42% | 2.53% | 206.5% |
| H1 2026 (cumulative) | KRW 1.0307 trillion | 2.73% | 3.79% | 205.0% |
Operating margin, net margin, and debt ratio are directly calculated using confirmed financial figures (A). Source: DART Annual Report / Semi-Annual Report (see respective receipt numbers for confirmed financial data tables).
Orders and Construction Capability Evaluation
| Date | Order Details |
|---|---|
| 2026-07-30 | Selected as preferred bidder for detailed design of Section 10 of the Southern Inland Railway construction project (approx. KRW 271 billion) |
| 2026-07-31 | Selected as preferred negotiating party for the Goyang Changneung / Yangju Goeup integrated public-private housing project (approx. KRW 567.7 billion) |
Source: Newsway (2026-07-31), Herald Economy (2026-07-30, 31), Money Today (2026-08-03).
Peer Comparison
| Company | Capability Rank | 2025 Revenue | 2025 Operating Profit | PBR |
|---|---|---|---|---|
| Dongbu Corporation | 25th | KRW 1.7586 trillion | KRW 42.6 billion (turned profitable) | 0.32x |
| Kolon Global | 23rd | KRW 2.6845 trillion | KRW 3.9 billion (turned profitable) | 0.42x |
| Kumho E&C | 27th | KRW 2.0173 trillion | KRW 45.9 billion (turned profitable) | 1.29x |
| Hanshin E&C | 29th | N/A | N/A | 0.15x |
PBR figures are secondary-source snapshots (retrieved at different times, C) — Dongbu Corporation's PBR uses the directly calculated figure in the Valuation section as the authoritative value (A, 0.317x). Source: secondary aggregation from News Space, Seoul Economic Daily, ThinkPool, and others.
Governance and Capital Structure
| Date | Description |
|---|---|
| 2023-06-22 | Issued 3rd convertible bonds (KRW 12.5 billion, conversion price KRW 7,697) |
| 2025-05-23 | Decided on early redemption of 3rd convertible bonds (bondholder put option exercised; full retirement planned) |
| 2026-04-16 | Decided to issue 5th convertible bonds (KRW 40 billion, conversion price KRW 9,589, maturing 2030-04-24) |
| 2026-08-14 | Filed report on amendment to largest shareholder's share-backed loan agreement (Report on Status of Large Shareholding) |
Dongbu Corporation's largest shareholder is Keystone Eco Prime, a private equity fund structure controlled by Keystone Eco Prime Star Corporate Financial Stability Private Equity Fund LP, in which Korea Land Trust is the largest investor (87.43%) (Annual Report, receipt no. 20260316001362). Between 2023 and August 2026, the largest shareholder's stake (56.22%) remained unchanged, but the entire holding is under a securities-backed loan agreement (same source, as of 2025-12-31).
Supply and Demand Trends
Supply-and-demand figures are secondary-source estimates not cross-checked against official KRX data, as pykrx was not installed (alphasquare.co.kr).
Macro Environment
| Factor | Current Value | Transmission Path / Impact |
|---|---|---|
| Bank of Korea base rate | 2.75% (raised 2026-07-16) | Higher PF and mortgage funding costs → pressure to delay new construction starts and pre-sales |
| Real estate PF exposure (industry) | KRW 169.8 trillion (end of March 2026) | Continued PF market restructuring → contraction in new development project starts |
| Domestic construction orders (private) | -41.5% YoY (June 2026) | Shrinking private housing/building order pipeline; public/civil engineering remains solid at +29.2% |
| Nationwide unsold housing units | 67,464 units (end of June 2026, +3.4%) | Higher risk for new pre-sales; concerns over delayed collection of sale proceeds |
| Stress DSR Stage 3 | Fully applied in H2 2026 | Reduced household mortgage limits (approx. 10-15%) → weaker pre-sale demand |
Source: Financial News, Asia Today, Korea Construction Association Monthly Construction Economic Trends (2026-08-12), Korea Economic Daily, Banksalad.
Risk-Related Facts
- The company recorded a consolidated operating loss of KRW 96.9 billion and a net loss of KRW 107.5 billion in 2024; the debt ratio has trended down from 264.7% in 2024 to 206.5% in 2025 and 205.0% in H1 2026, but remains above 200% (direct calculation from confirmed financial data, A).
- Dongbu Corporation's own real estate PF guarantee exposure amount and delinquency rate could not be obtained in this research (not available).
- A significant portion of the H1 2026 increase in net income is attributable to an improvement in equity-method gains from affiliate HJ Shipbuilding & Construction (improvement of approximately KRW 32.3 billion), a P&L item linked to the shipbuilding industry cycle (Herald Economy, 2026-08-14).
- The largest shareholder, Keystone Eco Prime, is a private equity fund structure, and its entire stake (56.22%) is under a securities-backed loan agreement (Annual Report, as of 2025-12-31).
- As of June 2026, domestic private construction orders fell sharply by -41.5% YoY, and nationwide unsold housing units rose again to 67,464 units (+3.4%) (Korea Construction Association, Korea Economic Daily).
- Specific price data for raw materials such as cement and rebar as of August 2026 could not be obtained (not available).
Valuation (Factual Multiples)
PER is an estimate (E) derived by back-calculating H1 2025 net income using the growth rate reported in the news. EV/EBITDA could not be calculated due to unavailable consolidated interest expense (not available). Source: system-confirmed market and financial data, DART total shares outstanding disclosure (as of 2026-06-30).
Theme Relevance
Fact Highlights
Source: Generated by FomoLog Agent · Data sources: Korea Exchange · NASDAQ · DART · SEC EDGAR