Dongbu Corporation Increases Incheon Geomdan Contract to 248.9B KRW, Becomes Sole Contractor – 21.55% of Sales
Dongbu Corporation amended its contract with Korea Land Trust for the Incheon Geomdan 16-ho Park apartment and park facilities, increasing the contract amount from 208.1B to 248.9B KRW (excl. VAT), a 19.6% rise. This represents 21.55% of its 2019 consolidated revenue.
Following the withdrawal of a joint contractor, Dongbu became the sole contractor, taking over 99.8% of the total project value (249.5B KRW) after settlement adjustments.
The counterparty, Korea Land Trust, is a related party (largest shareholder's special relation), making this an internal transaction. However, the scale and sole contractor status positively impact Dongbu's revenue and margins.
Construction period is 41 months from start, with expected completion by November 21, 2028.
[AI Summary]The contract increase and sole contractor conversion for Dongbu's Geomdan project are expected to boost revenue and margins, but potential conflicts of interest from related-party dealings and large-scale project risks should be key considerations for investors.
KOSPI Filing Information
Filing: [Correction of Description] Conclusion of Single Sale and Supply Contract