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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] Nine major construction companies in South Korea have accumulated a total of over 17 trillion won in uncollected receivables from domestic and international projects, according to recent data.
Receivables, which represent payments due for completed construction projects, typically rise as order volumes increase. However, excessive accumulation of receivables can negatively impact financial health, prompting calls for better management.
According to the Financial Supervisory Service and other sources, the receivables for the third quarter of this year (July–September) from these nine large construction firms amounted to 17.637 trillion won, up 4.2% from 16.934 trillion won at the end of last year. The data includes both construction and sales receivables from the top 10 construction firms in South Korea, covering amounts due from projects, sales, and contracts.
Hyundai Engineering & Construction had the largest receivables, totaling 5.0512 trillion won, a 49.5% increase from the end of last year. The company explained that the growth was due to increased order volumes, which they consider appropriate given the scale of their sales. Specifically, Hyundai’s receivables include 2.141 billion won from the Dunchon Jugong redevelopment project, which they expect to clear once final payments are made. Other companies, such as Daewoo Engineering & Construction, Hyundai Engineering, POSCO E&C, and Lotte Construction, also reported increases in their receivables, ranging from 8.5% to 36.6%.
Alphabiz Reporter Kim SangJin(letyou@alphabiz.co.kr)
