Strengthening Competitive Power

Pres. Ki of Kumho E&C outlines management targets for New Year including expanding overseas operations

President Ki Ock of Kumho Eng-ineering and Construction Co. said strengthening the competitive power of the company will be the most important objective in his mana-gement strategy for this year.
The CEO has chosen securing project orders, increased sales, and cutting costs as the three keys in his management policy this year under the assumption that the company would not otherwise be able to survive this year, which will be full of uncertainties both in and out of the country.
With Korea Development Bank and other creditors managing the company's finances, the company has decided to focus on the management of its internal matters this year, drawing from the fact that the company secured 1.65 trillion won worth of new housing projects last year, although many new apartments went unsold last year due to the sluggish housing market.
Ki focused his management portfolio for this year on the company's long-term outlook, saying that big global companies went belly-up when they failed to read the rapid trends and demands correctly. "We ought to intensively try to keep new growth engines growing from long-term investments and efforts," Ki said.
Kumho plans to streamline its projects this year and sell land to secure both stability and liquidity and minimize losses associated with project financing under its strategy to improve its financial health. The company will try to take on con-struction projects that don't need PF and at the same time create faster sales turnover rights as the keys to its profitable operation this year. The company will control cash management more tightly and cut losses from guarantee issuances on housing projects as well as reduce the inventory of unsold housing units.
The company will supply 3,437 new housing units this year with profits guaranteed, as most of them are for redevelopment.
Kumho will expand its overseas operations this year centered around Vietnam and Cambodia where the company has been engaged in con-struction projects in a bid to have overseas sales account for around 30 percent of total annual sales by 2015.
The company will expand its projects in Vietnam mainly around Hanoi and Ho Chi Minh City in the areas of high-rise buildings and skyscrapers, then expand to highway and hospital construction projects later. The company will do the same in some African countries and other Southeast Asian countries.
Kumho will also expand its projects in the Middle East where its construction technologies in various areas have been proven, particularly in the construction of airports and terminals. The company had a hand in the passenger terminal for the Dubai World Center Airport and the Abu Dhabi International Airport Control Tower. Kumho is in the process of drawing up a strategy to secure more joint projects related to airports by forming a civilian business team
President Ki said he will focus on management of the company in the areas of internal administrative matters such as cutting costs, personnel, and others in an effort to generate more income. In 2013, the task will be to normalize the com-pany's operation to prepare for a huge jump in 2016 as targeted.
President Ki, in a statement on Kumho's operation, said, "It is worth pointing out that our current business situation has room for improvement. However, ever since its founding in 1967, Kumho E&C has never shied away from challenges, and for almost half a century has always delivered industry-leading achievements with an unfailing sense of adventure and resolve."
Sharing the hardships and ordeals of the post-war Korean economy, Kumho E&C played a pivotal role in the development of national infrastructure, while creating the finest of residence brands in Eullim and Richensia. The company has also actively expanded into overseas markets, implemen-ting a variety of successful projects. Kumho E&C possesses unrivalled expertise and know-how in airport and related infrastructure works. nw

Chairman Park Sam-koo of Kumho-Asiana Group.