Construction Guarantee (CG) announced that its net profit for 2016 amounted to 172 billion won, up 82.9 percent from the preceding year, the largest in the company’s history. CG made the announcement at the 111th regular conference on March 21 at the Construction Hall in Nonhyun-dong, Seoul.
CG said the excellent year was owed to the tight management of risks and holding down expenses with stable management of funds, among others, amid a slowdown in the financial market due to low interest rates. CG also announced that 91.5 billion won of the net profit will be provided to the members of CG as dividends in a move to share the management results as much as possible by providing the largest dividend in its history. CG officials said the income from guaranteed fees and loans was down more than 10 billion won from the preceding year, with CG helping companies in trouble recover some 93.8 billion won in funds; it’s also doing its best to prevent guarantors paying for the guaranteed money and claims for reimbursement.
They also said intensive marketing of new products contributed to CG’s income, amounting to some 50 billion won.
Chairman Park Seung-joon said he is proud CG posted the largest net profit in its history and to shared the joy of achievement with all members of CG. CG, he said, will be at the forefront of helping its members see the benefits first-hand from the excellent record shared by every member of CG.
In the meantime, CG will work towards the reform of its systems to be prepared to provide support to the member firms in trouble due to a worsened construction market this year, so they can continue to maintain stable operations.
CG officials said they will do their utmost to strengthen CG’s organizational capacity through management reform to boost organizational effectiveness, the settlement of result-oriented management, the expansion of growth strength, and strengthen risk management so that CG would grow further as the top professional financial institution in the country. Since its founding in 1963, Construction Guarantee has supported construction companies in their individual pursuits and has contributed to the development and growth of the construction industry in Korea. Construction Guarantee was the first institution of its kind in Korea, and it has played a leading role in making the construction industry a pivotal force in the Korean economy by providing financial credit to construction enterprises.
“With 50 years of experience, Construction Guarantee continues to strive in our main business endeavors of guarantees and loan. Our business extends to insurance, Sejong Field Golf Club, and the CG Construction Management Training Center,” CG says.
Chairman Park explains to the heads of its member firms the plan that CG will carry out for this year at a recently meeting. Photos: CG)
Key Areas of CG’s Business
Guarantee: Mutual trust is important to the successful execution of large construction projects. Both developers and construction companies need a means by which to establish trust in their business relations.
Construction Guarantee provides a variety of guarantee products to protect our customers from the bidding phase to the completion of the project. Recently, we have taken part in an increasing number of overseas construction contracts, and we are expanding our overseas products accordingly.
Guarantee limit: Construction Guarantee’s guarantee limit is determined based on corporate capabilities, which we evaluate according to the investment equity limit, unused loans on credit limit, and construction capabilities limit of the company.
Construction Guarantee provides loans to members at lower interest rates than banks and other financial institutions. This helps members save money and perform business efficiently.