Daewoo Engineering & Construction reports 202 billion won Seoul contract

Daewoo Engineering & Construction has disclosed a 202 billion won amended construction contract with the Seoul Metropolitan Government Urban Infrastructure Headquarters for an underground road project in Gangnam-gu, Seoul, equal to 2.5 percent of its latest annual revenue.

The amended deal was signed on July 29 for the Dongbu Arterial Road Undergrounding, or Yeongdong-daero, construction project; its stated value excludes value-added tax, while Daewoo's allocated share represents 55.8 percent of the total contract value.

Work will be conducted along Yeongdong-daero in Gangnam-gu, Seoul, from the Hangnyeoul Station intersection to the southern end of Yeongdong Bridge, defining the route covered by the planned underground road development.

City project information describes a four-lane tunnel reserved for small vehicles and extending 2.1 kilometers, along with a 0.88-kilometer connecting road in the designated Seoul construction corridor.

The project also includes an underpass, access facilities and expanded traffic lanes in the above-ground portion of the route.

Construction is scheduled to run from Feb. 16, 2023, until Sept. 26, 2029, according to terms described in Daewoo's filing.

Daewoo said the original contract fell below the disclosure threshold when first signed in 2023, but the amended agreement met that threshold on this occasion.

The filing used recent revenue of 8.05 trillion won as the comparison base for the contract, calculated from Daewoo's consolidated financial statements as of the end of 2025.

Daewoo's civil engineering business covers roads, bridges, railways and subways, while its building operations include apartments and data centers and its plant business handles Oil & Gas, LNG and power-generation facilities.

In the first quarter, the building division generated 65.2 percent of the company's total revenue, compared with 18.0 percent for civil engineering and 14.6 percent for plant operations.

For the first six months, building represented 66.7 percent of cumulative revenue, with civil engineering, plant operations and consolidated subsidiaries contributing 18.6 percent, 12.8 percent and 1.9 percent, respectively.

Daewoo disclosed provisional consolidated second-quarter earnings on Aug. 4, with the release listing revenue, operating profit and net income for the quarter.

The company also issued a corrected operating-performance forecast based on consolidated financial statements in a separate disclosure on the same day.

First-half company information also reported cumulative revenue and operating profit alongside an operating margin of 12.2 percent for the six-month period.

Daewoo's order backlog at the end of the first half was 5.5 percent higher than at the previous year-end, company information showed.

The reported backlog included domestic orders and overseas orders, which were presented as separate reported categories in the company's information.