Fact Summary
Kumho Engineering & Construction is a general construction company operating in building construction (including housing), civil engineering, plant, and environmental sectors. In H1 2026 (cumulative), it recorded consolidated revenue of KRW 965.0 billion, operating profit of KRW 28.7 billion (+30.6% YoY), and net income of KRW 24.4 billion (semiannual report, filing no. 20260813000466). The largest shareholder is Kumho Buslines Co., Ltd., holding a 44.13% stake (annual report, filing no. 20260318001135, as of 2025-12-31).
Price Change Context Note
The 2026-08-20 closing price of KRW 15,650 represents a 24.21% increase from the previous trading day's close of KRW 12,600. This follows two consecutive upper-limit gains on 2026-08-11–08-12, a correction to the KRW 13,400–13,950 range during 2026-08-14–08-18, and then another sharp rise. No company-specific disclosure or news explaining the 08-20 increase was identified within the scope of this research; the factors confirmed through 08-18 were policy momentum related to the government's Honam semiconductor cluster and Gwangju military airport relocation, along with improved H1 earnings.
Valuation (Factual Multiples)
EV/EBITDA could not be calculated due to unavailable depreciation and net debt details (not available). A simple annualization (×2) of H1 2026 EPS (KRW 654.2) implies a PER of approximately 11.96x, but this is a seasonally-unadjusted estimate for reference only.
5-Year Financial Trend (Consolidated)
| Period | Revenue | Operating Profit | Net Income | Total Equity | Debt Ratio |
|---|---|---|---|---|---|
| 2021 | KRW 2.0651 trillion | KRW 111.6 billion | KRW 148.1 billion | KRW 652.8 billion | 165.9% |
| 2022 | KRW 2.0485 trillion | KRW 55.9 billion | KRW 20.8 billion | KRW 543.3 billion | 211.3% |
| 2023 | KRW 2.2176 trillion | KRW 21.8 billion | KRW 0.75 billion | KRW 469.8 billion | 260.3% |
| 2024 | KRW 1.9142 trillion | -KRW 181.8 billion | -KRW 228.5 billion | KRW 225.4 billion | 588.7% |
| 2025 | KRW 2.0185 trillion | KRW 47.1 billion | KRW 62.4 billion | KRW 242.6 billion | 520.2% |
| H1 2026 (cumulative) | KRW 965.1 billion | KRW 28.7 billion | KRW 24.4 billion | KRW 282.1 billion | 405.5% |
Source: DART annual/semiannual reports (consolidated, A) · Debt ratio calculated in the main session from confirmed financial data (total liabilities / total equity).
Financial Structure — Debt Ratio Trend
Following a large net loss of KRW 228.5 billion in 2024, total equity fell approximately 46% year-over-year, pushing the debt ratio up to 588.7%. It subsequently declined to 405.5% by the end of H1 2026, helped by the return to profitability in 2025, improved H1 2026 earnings, and capital-raising measures including treasury stock disposal, rights offerings (debt-to-equity conversion), and issuance of hybrid capital securities.
Business Segment Composition and Competitive Position
Based on H1 2026 (cumulative) revenue of KRW 965.0 billion; YoY change was Building +5.7%, Civil Engineering -5.9%, Plant -30% (though it returned to profitability). Source: media compilation (C label); cross-checking against the segment notes in the original DART semiannual report is recommended. The remaining ~1% is estimated to be other segments such as environmental, with details not available.
Separately, some sources classify Q1 2026 revenue mix as Housing/Development 44% · Civil Engineering/Plant/Environmental 35% · Building Construction 15% · Overseas 4% · Other 1% (compiled corporate analysis data, C label); as the segment classification basis differs from the semiannual data above, they are not directly compared.
2026 Ministry of Land, Infrastructure and Transport construction capability evaluation amount (civil/building construction business, C label, media compilation) — Kumho Engineering & Construction's own ranking and evaluation amount were not identified within the search scope (not available).
Kumho E&C's operating margin is lower than major large-cap builders, positioning it as a mid-tier construction company. PBR comparison: Kumho E&C 2.07–2.40x (based on 2026-08-20 price) vs. Daewoo E&C 0.37x · KCC E&C 0.27x · Kolon Global 0.32x (each as of different research dates, C label) — as these are not based on the same reference date, caution is warranted when comparing absolute levels.
Investor Flow Trends (Trading by Investor Type)
| Category | Single day (08-18) | 5-day cumulative | 20-day cumulative |
|---|---|---|---|
| Individuals | +486,347 shares | +780,519 shares | +740,607 shares |
| Institutions | +3,173 shares | -6,227 shares | -25,464 shares |
| Foreigners | -487,064 shares | -768,755 shares | -717,749 shares |
As of 2026-08-18 (20-trading-day window: 2026-07-20–08-18) · Source: alphasquare.co.kr daily tables (tertiary source, not cross-checked against official KRX data, C label) · Investor flow data for 2026-08-19–08-20 not available.
Foreign ownership was 2.23% (as of 2026-08-18 18:00, tertiary source), and the short-selling ratio was 0.36% as of 08-18, lower than the recent 20-trading-day average. The short-selling balance ratio was 0.65% as of 08-13, the highest among recently available data but still under 1%.
Governance and Capital Structure
As of 2025-12-31, Source: annual report "Matters Concerning Shareholders" (filing no. 20260318001135) · Total special related parties (common shares) 47.77% · Per the 2026-04-17 "Report on Changes in Shareholding of Largest Shareholder etc." (filing no. 20260417800288), the combined stake of the largest shareholder and specially related persons was re-confirmed at 43.78% (based on total shares issued) — the two figures differ in scope (whether CJ Logistics is included) and are both presented.
CJ Logistics Corporation, separate from its equity stake, is a special related party with the right to appoint one director, as specified in the annual report (filing no. 20260318001135).
| Date | Event |
|---|---|
| 2025-04-21 | Payment for third-party allotment rights offering (debt-to-equity conversion) — 43,165 shares, issue price KRW 160,900, proceeds KRW 6.945 billion |
| 2026-03-26 | Board resolution — rights offering (debt-to-equity conversion) and treasury stock disposal (employee bonus) |
| 2026-04-17 | Filed report on treasury stock disposal results · Report on changes in shareholding of largest shareholder etc. |
| 2026-04-21 | Payment for third-party allotment rights offering (debt-to-equity conversion) — 263,214 shares, issue price KRW 160,900, proceeds KRW 42.35 billion |
| 2026-05-08 | Scheduled listing date for new shares from 2026 rights offering |
| 2026-06-26 | Resolution to issue KRW 30.0 billion in hybrid capital securities (perpetual bonds) |
Source: DART reports on material matters, respective filing nos. (20250325000658, 20260326001295, 20260417000107, 20260417800288, 20260626000209) · A label.
Kumho Engineering & Construction entered creditor-led joint management (a workout) in 2010 and conditionally exited in 2014. Debt-to-equity conversions of confirmed loss liabilities (PF contingent liabilities related to joint guarantees), per resolutions of the creditor financial institutions' council from 2011–2013, have continued to be executed annually in 2025 and 2026 at the same issue price of KRW 160,900 (filing nos. 20250325000658, 20260326001295). A full review of DART disclosures over the research period (2023-01-01–2026-08-18) found no disclosures related to a management control dispute.
Risk Factors
Credit Rating Not Assessed Previous Rating BBB-/Negative — In 2026, Kumho Engineering & Construction did not apply for a credit rating and therefore has none assigned; its previous rating (which expired end of 2025) was BBB- (Negative) (Korea Economic TV, 2025-04-30, C label).
The KRW 30.0 billion in hybrid capital securities (perpetual bonds) issued on 2026-06-26 is classified as equity for accounting purposes, but includes a step-up clause raising the coupon rate to 9.5% after 2028-06-29 (C label; cross-checking against the original primary disclosure terms is recommended).
Regarding the July 2023 Osong underpass disaster (Kumho Engineering & Construction was the contractor), the Public Procurement Service notified the company of a one-year suspension of eligibility to bid on public construction projects; however, an injunction suspending enforcement that Kumho Engineering & Construction sought from the court was granted, so the company retains its bidding eligibility pending the final ruling on the merits (as reported around January 2026). Bereaved families have filed and are pursuing a KRW 17.4 billion damages lawsuit against the national government, Chungcheongbuk-do, Cheongju City, and Kumho Engineering & Construction (ruling outcome not available).
Even after the completion of the Korean Air–Asiana Airlines merger (2024-12-12), Kumho Engineering & Construction continues to hold an 11% stake in Asiana Airlines (book value KRW 179.963 billion, as of 2025-12-31), and a valuation loss of KRW 143.5 billion on this stake was reflected in its Q1 2026 financial statements (C label; timing and method of any sale remain undetermined).
Macro Environment
| Indicator | Value (as of) | Transmission Channel |
|---|---|---|
| Bank of Korea base rate | 2.75% (raised 2026-07-16) | Rising funding and PF loan rates → increased interest expense burden |
| Deposit bank mortgage loan rate | 4.36% (June 2026) | Reduced subscription/purchasing capacity → affects pre-sale contract rates |
| Nationwide unsold housing units | 67,464 units (end of June 2026, +3.4%) | Growing inventory concentrated in regional areas → burden on financial structure |
| Rebar (SD400) benchmark price | KRW 945,000/ton (August 2026, +KRW 23,000) | Cost-ratio pressure on fixed-price contracts already won |
| Government PF guarantee expansion measures (Aug. 13 package) | KRW 26.3 trillion → KRW 47.8 trillion+ | Eases PF contingent liability burden → favorable for reducing financial-structure risk |
Source: Bank of Korea, Korea Real Estate Board, Ministry of Land, Infrastructure and Transport, Daehan Economy, Financial News (each with reference date noted, C label) · Approximately four-fifths of Kumho E&C's revenue derives from domestic housing and civil engineering (Q1 2026: Housing/Development 44% + Civil Engineering/Plant/Environmental 35%), so the domestic macro transmission is stronger than the overseas (oil price/FX) channel. Overseas revenue accounts for roughly 1–4%.
Recent News Timeline
| Date | Content |
|---|---|
| 2026-06-29–07-01 | Government announces candidate sites (including the Gwangju military airport site) for a southwestern-region semiconductor mega-project — Samsung Electronics and SK hynix plan investments of up to KRW 800 trillion |
| 2026-07-01 | Designated as a KRX investment alert stock (up more than 60% over the prior 5 trading days) |
| 2026-07-08–09 | One-day trading halt triggered by exceeding the 40%+ gain threshold; trading resumed the next day |
| 2026-07-30 | Hit the daily upper limit (KRW 9,490) on news of Gwangju semiconductor national industrial complex candidate-site designation |
| 2026-08-10 | President chairs second inspection meeting on the mega-project — orders early groundbreaking for the Honam semiconductor cluster |
| 2026-08-11 | Hit the intraday upper limit (+29.98%, KRW 11,490) following the President's remarks on an early relocation of the Gwangju military airport |
| 2026-08-11 | Ministry of National Defense announces plan to relocate Gwangju military airport functions by 2028 |
| 2026-08-12 | Hit the upper limit again (KRW 14,930, +29.94%) |
| 2026-08-13 | H1 2026 (consolidated) earnings released — operating profit KRW 28.7 billion (+30.6%), revenue KRW 965.0 billion, net income KRW 24.4 billion (+117.9%) |
| 2026-08-17–18 | Reports that a military airport relocation candidate site would be selected within the month; 08-18 close KRW 13,950 (+4.10%) |
| 2026-08-20 | Close KRW 15,650 (+24.21% vs. previous day), volume 25,693,518 shares — the specific catalyst for the day was not identified within the scope of this research (not available) |
Source: KRX disclosures (filing no. 20260707000674, etc., primary) · EToday, Hankook Ilbo, YTN, Financial News, Newspim, E-News Today (secondary) · System-confirmed price data (2026-08-20, A).
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Fact Highlights
This is not investment advice. FomoLog provides factual summaries and post-hoc price-change context only. Investment decisions and their outcomes are solely the responsibility of the investor.
Generated by FomoLog Agent · Data sources: Korea Exchange · DART