Factual Summary
KCC E&C closed at 5,600 KRW on 2026-08-18 (down 2.61% from the previous close of 5,750 KRW, volume 35,251 shares). On a standalone (non-consolidated) basis for FY2025, revenue was 1,833.4 billion KRW, operating profit was 88.3 billion KRW, and net income was 45.4 billion KRW, extending a three-year streak of operating profit improvement following the FY2022 operating loss (DART, filing no. 20260319001024). For H1 2026 (cumulative), the company posted revenue of 735.8 billion KRW, operating profit of 36.7 billion KRW, and net income of 24.7 billion KRW (DART, filing no. 20260813001598). The credit rating is A-, with the rating outlook upgraded from negative to stable around December 2025 (Global Economic).
Price-Change Context Note
No news or disclosure directly explaining the 2026-08-18 share price decline (-2.61%) was identified. In the preceding period, on 2026-08-12 the Ministry of Employment and Labor concluded that the fatal accident at the Opus Hangang Switzen site was caused by a personal illness and was not subject to the Serious Accidents Punishment Act, and on 2026-08-13 the semiannual report was disclosed (Asia Today, DART).
Business Overview
KCC E&C is a general construction company under the KCC Group, spun off from Kumkang Co., Ltd. in 1989, operating in four business segments — housing, building construction, civil works, and plants — with the housing brand SWITZEN (KCC E&C official website). The latest breakdown of revenue by detailed business segment was not obtained — not available (requires review of the original DART semiannual report).
5-Year Financial Trend
| Period | Revenue (100M KRW) | Operating Profit (100M KRW) | Net Income (100M KRW) | Operating Margin | Net Margin |
|---|---|---|---|---|---|
| 2021 | 13,640 | 318.8 | 471.9 | 2.34% | 3.46% |
| 2022 | 18,931 | -10.9 | 44.4 | -0.06% | 0.23% |
| 2023 | 19,096 | 181.5 | 103.5 | 0.95% | 0.54% |
| 2024 | 18,270 | 646.0 | 159.6 | 3.54% | 0.87% |
| 2025 | 18,334 | 883.4 | 454.0 | 4.82% | 2.48% |
| H1 2026 (cumulative) | 7,358 | 367.3 | 246.8 | 4.99% | 3.35% |
Operating profit expanded continuously from 2023 to 2025 after the FY2022 loss (-10.9 (100M KRW)), and the debt-to-equity ratio declined from a peak of 190.8% in 2024 to 153.0% in H1 2026 (DART, filing nos. 20260319001024 and 20260813001598). Note that the H1 cumulative figures cover a different period length than the annual figures, so seasonality distortion should be considered in any simple comparison.
Valuation
| Company | Market Cap | PER | PBR |
|---|---|---|---|
| KCC E&C | 119.84 billion KRW (2026-08-18) | 2.64x | 0.209-0.217x |
| Keangnam Enterprises | 171.9-181.7 billion KRW | 1.5-2.39x | 0.17-0.20x |
| Hanshin E&C | 131.4 billion KRW | 1.92x | 0.15x |
| Daewoo E&C | Not available | 7.3x | 0.37x |
EV/EBITDA could not be calculated because detailed line items for interest-bearing debt and depreciation/amortization were not obtained — not available. TTM (trailing twelve months) EPS and PER were also not calculated because H1 2025 net income was not obtained. Peer figures use differing reference dates across sources, so caution is warranted when cross-comparing.
Governance and Capital Structure
| Position | Name | Term Expiry |
|---|---|---|
| Chairman & CEO | Chung Mong-yeol | 2029-03-27 |
| President & CEO | Sim Gwang-ju | 2027-03-29 |
| Outside Director | Lee Seung-hun | 2028-03-27 |
| Standing Auditor | Hong Jong-pal | 2029-03-27 |
The largest shareholder is KCC Corporation (KRX 002380), holding a 36.03% stake, and the combined stake of the largest shareholder and related parties including Chairman Chung Mong-yeol is 69.27% (DART semiannual report, as of 2026-06-30). KCC E&C has no controlling subsidiaries or sub-subsidiaries; its stakes in 15 investee companies are classified as simple investments, with the largest at up to 25.76% (Hwarang Gwansa BTL) (FY2025 business report, status of equity investments in other companies, as of 2025-12-31).
Supply and Demand
Quantitative supply-and-demand indicators for the 2026-07-18 to 2026-08-18 period — including trading trends by investor type (foreign, institutional, retail), securities lending balances, and foreign ownership/limit utilization ratios — were not obtained during research — not available (due to pykrx installation constraints and failure to extract figures from dynamic pages). The WiseReport shareholding status page confirmed a combined holding of 14,773,985 shares (69.04%, reference date unstated) by the largest shareholder KCC Corporation and related parties; however, this reflects largest-shareholder shareholding status rather than foreign ownership ratio, and is noted for reference only, separate from the confirmed DART figure in the governance section (69.27%, as of 2026-06-30).
Macro Environment
With building construction accounting for 79.6% of revenue, KCC E&C has a domestic-demand-centered business structure in which the Bank of Korea base rate, nationwide unsold housing units, and the Construction Business Survey Index (CBSI) have a more meaningful transmission channel than global indicators such as U.S. interest rates or semiconductor tariffs.
| Factor | Current Value (as of) | Trend |
|---|---|---|
| Bank of Korea base rate | 2.75% (2026-07-16) | Shifted to a hike after a prolonged hold at 2.50% |
| Nationwide unsold housing units | 67,464 units (end of 2026-06) | +3.4% month-on-month, expansion concentrated in regional areas |
| Construction Business Survey Index (CBSI) | 72.8 (2026-07) | Down 1.7pt month-on-month, below the 100 baseline |
| Seoul apartment sale price index | +1.27% month-on-month (2026-07) | Fourth consecutive month of increase |
| Ready-mixed concrete price (Seoul metropolitan area) | 99,600 KRW/m³ (2026) | Stabilizing amid demand slowdown |
Risk Factors
PF guarantees 535.0 billion KRW Improved pre-sale rate at unsold-unit sites Decline in construction orders Safety-incident investigation concluded
- As of end-March 2024, total PF guarantees excluding redevelopment/reconstruction projects were 535.0 billion KRW (Dealsite).
- Daegu Suseong Forest Switzen improved its pre-sale rate to 76% via a 15% discount to the original offering price, and around October 2025 repaid 99.0 billion KRW of remaining PF borrowings using an HUG-guaranteed unsold-unit mortgage loan (Dealsite).
- June 2026 construction orders totaled 18.7 trillion KRW, down 21.7% year-on-year, with private-sector orders down 41.5% (Korea Construction Industry Research Institute-CERIK).
- The Construction Business Survey Index (CBSI) fell to 72.8 in July 2026, down 1.7 points month-on-month (CERIK).
- Regarding the fatal accident at the Opus Hangang Switzen site, the Ministry of Employment and Labor's investigation on 2026-08-12 concluded it was caused by a personal illness and not subject to the Serious Accidents Punishment Act (Asia Today).
- No specific disclosures regarding litigation or damages claims were identified — not available.
News Timeline
| Date | Item |
|---|---|
| 2026-08-13 | Semiannual report disclosed (revenue 735.8 billion KRW, operating profit 36.7 billion KRW, net income 24.7 billion KRW) |
| 2026-08-12 | Fatal accident at Opus Hangang Switzen site; Ministry of Employment and Labor investigation concluded it was caused by a personal illness |
| 2026-07-02 | Daejeon Munchang-dong District 2 redevelopment project contract (422.4 billion KRW) |
| 2026-05-15 | Reports of expanded non-housing orders including logistics centers |
| 2026-05-04 | Chairman Chung Mong-yeol becomes owner of the Busan KCC Egis professional basketball club |
| 2026-04-14 | Hwaseong Hyangnam Hagil district order won (238.8 billion KRW); GTX-B contract amount increased |
| 2026-04-08 | Daejeon Sanseong-dong District 1 redevelopment project order won (317.9 billion KRW) |
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Fact Highlights
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