Fact Summary
Dongwon Development is a comprehensive housing-construction company ranked No. 1 in construction capability evaluation in the Busan/Ulsan/Gyeongnam region. Its closing price on 2026-08-18 was KRW 2,240 (-2.18% day-over-day), with trading volume of 81,998 shares. Per its FY2025 business report, consolidated revenue was KRW 387.3 billion, down by double-digit percentages for two consecutive years from KRW 736.6 billion in 2023, while operating margin fell from 23.3% in 2021 to 4.4% in 2025 (DART receipt no. 20260319000997). In August 2025 the company received a contract-termination notice from the Yangjeong Sanho reconstruction association in Jin-gu, Busan, and following a disclosure delay was designated an unfaithful-disclosure company on 2025-12-03 with a KRW 20 million penalty imposed (Seoul Economic Daily, 2025-11-17).
Price-Change Context Note
Over the most recent 21 trading days (2026-07-20 to 08-18), foreign investors were net sellers of a cumulative 272,385 shares while retail investors were net buyers of 235,179 shares, indicating diverging demand-supply directions; over the same period, the short-selling ratio fell from the 6-14% range in late July/early August to 0.87% on August 18 (alphasquare, secondary source, not cross-checked against KRX). The timing of development for landholdings (roughly 40% of total assets) on which self-developed projects have not yet begun is cited as a structural factor that could affect earnings trends (Seoul Pyeongga Jeongbo report, 2025-11-27).
Business Overview
Business segments consist of housing (apartment pre-sales/self-developed projects), construction (buildings, civil engineering, plants), and consignment business (construction outsourcing) (company website). Pre-sales are underway for 'Pyeongtaek Brain City Vista Dongwon' (11 buildings, 1,186 units total) in the Pyeongtaek Brain City general industrial complex, Gyeonggi Province, with financing terms such as reduced down-payment burden and interest-free mid-term payments offered (Betanews, 2026-06-18).
5-Year Financial Trend
| Period | Total Assets (KRW 100mn) | Total Liabilities (KRW 100mn) | Total Equity (KRW 100mn) | Debt Ratio |
|---|---|---|---|---|
| 2021 | 12,134 | 2,561 | 9,573 | 26.8% |
| 2022 | 14,203 | 4,131 | 10,072 | 41.0% |
| 2023 | 14,303 | 3,947 | 10,356 | 38.1% |
| 2024 | 13,783 | 3,320 | 10,464 | 31.7% |
| 2025 | 14,858 | 4,260 | 10,598 | 40.2% |
| H1 2026 | 14,516 | 3,926 | 10,590 | 37.1% |
Valuation (Factual Multiples)
ROE (FY2025, based on simple period-end equity) was calculated at 2.47% and ROA at 1.76% (calculated this session, A). EV/EBITDA and EV/Sales were not calculated due to unavailable detail on interest-bearing debt and depreciation.
Peer Comparison
| Company | Market Cap (KRW 100mn) | PER (x) | Notes |
|---|---|---|---|
| Dongwon Development (013120) | 2,034 | 7.78 (A) | Busan/Gyeongnam-based housing construction specialist |
| Seohee Construction | approx. 3,730 | approx. 3.18 | Nationwide mid-tier construction company (secondary source) |
| Keyryong Construction Industrial | approx. 1,734 | approx. 3.66 | Daejeon-based general construction company (secondary source) |
| Hanshin Engineering & Construction | approx. 1,314 | 1.92-10.38 (inconsistent across sources) | Seoul-based construction company (secondary source, low reliability) |
Dongwon Development ranks No. 1 in construction capability evaluation in the Busan/Gyeongnam region (No. 32 nationwide), and the number of Busan-based construction companies within the national top 100 fell from 6 the prior year to 4 (Busan Ilbo, 2025-07-31). Seohee Construction, Keyryong Construction Industrial, and Hanshin Engineering & Construction are observed to have relatively higher shares of nationwide and public-works contracts, suggesting a different business portfolio composition (exact segment-level revenue shares are unavailable).
Supply-Demand Trends
Governance and Capital Structure
| Position | Name | Notes |
|---|---|---|
| Co-CEO (Chairman) | Jang Bok-man | Founder (secondary source) |
| Co-CEO (President) | Park Yeong-bong | Professional manager, took office January 2025 |
| Vice Chairman (Inside Director) | Jang Ho-ik | Second generation, largest shareholder, does not hold a CEO title |
Dongwon Development has a personal-ownership governance structure in which the family of founder Chairman Jang Bok-man (three brothers Jang Ho-ik, Jang Chang-ik, and Jang Jae-ik) hold cross-linked equity stakes. The full list of registered officers, board composition, and individual filing numbers for 5%-or-greater beneficial ownership reports are unavailable.
Risk Factors
- Approximately 40% of total assets consist of landholdings for self-developed projects that have not yet begun, and the timing of their development is cited as a variable for earnings (Seoul Pyeongga Jeongbo report, 2025-11-27).
- Revenue peaked at KRW 736.6 billion in 2023 before contracting by double-digit percentages for two consecutive years to KRW 387.3 billion in 2025 (DART receipt no. 20260319000997).
- Following the August 2025 contract termination on the Yangjeong Sanho reconstruction project (construction value KRW 129.6 billion), a disclosure delay led to designation as an unfaithful-disclosure company on 2025-12-03 and a KRW 20 million penalty; the status of any related litigation as of August 2026 is unavailable (Seoul Economic Daily, 2025-11-17).
- The Bank of Korea's base rate hike (to 2.75% on 2026-07-16), the resulting rise in new mortgage rates (5-major-bank average of 4.498% in July 2026), and the increase in non-performing real-estate PF loans (KRW 1.7 trillion) could pressure delays in developing the company's landholdings (Financial News, Asia Economic Daily, August 2026).
- Post-completion unsold housing units (chronic inventory) in Busan reached 3,292 units (end of July 2026), up 347 units from the prior month, expanding the regional inventory burden (Busan Ilbo, 2026-07-31).
- The combined ownership ratio of the largest shareholder and related parties varies across secondary sources (63.37% in 2023 vs. approximately 51.2% in 2026), making confirmation difficult until cross-checked against DART original filings.
Macro Impact
| Factor | Current Value (As of) | Transmission Channel | Impact |
|---|---|---|---|
| Bank of Korea base rate | 2.75% (raised 2026-07-16) | Rising PF and mortgage rates → increased interest expense and repayment burden | Negative |
| New mortgage rate (5 major banks) | 4.498% p.a. (July 2026) | Increased repayment burden for end-users | Negative |
| Real estate PF market | Non-performing loans up KRW 1.7 trillion (Q1) | Delays in converting bridge-loan sites to self-development | Negative |
| Busan post-completion unsold units | 3,292 units (end of July 2026) | Regional inventory burden and downward price pressure | Negative |
| Gyeongnam apartment pre-sale outlook index | 100.0 (August 2026, up from 84.6 the prior month) | Recovery in regional pre-sale sentiment | Improving |
| Government real estate regulation (regional) | Busan and Gyeongnam remain undesignated as regulated areas | Key question is whether Seoul-centered regulation will extend to regional areas | Neutral |
Theme Relevance
Fact Highlights
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