Construction Guarantee (CG) racked up 163.8 billion won in net profit in fiscal year 2021. Of this figure, 93.4 billion won will be distributed in cash dividends to members and 70.4 billion won will be set aside as reserves.
CG held the 123rd regular general meeting at the Construction Center in Nonhyeon-dong of Seoul in April and finalized the settlement of accounts and the statement of disposal of retained earnings for the 2021 business year.
The dividends were paid after a preparatory process. The cash dividends of 93.4 billion won accounted for 57 percent of the net profit, and the dividend per share stood at 22,000 won.
As a result, CG paid its members cash dividends for the ninth consecutive year.
On top of that, 70.4 billion won, excluding the cash dividends to members, was set aside as reserves. The portion accumulated as a profit reserve was returned to members by increasing CG’s capital and increasing its equity value.
According to CG’s fiscal year 2021 settlement of accounts, its profit stood at 514 billion won, an increase of 41.2 billion won from the previous fiscal year of 2020.
This is attributable to an increase in guarantee and deduction business profits through active business activities, interest and dividend income due to the diversification of investment targets.
Its total cost stood at 288.4 billion won - an increase of 27 billion won - and its net profit after deducting corporate tax 163.8 billion won, an increase by 8 billion won.
“We will increase organizational competitiveness through continuous management innovation and changes,” a union official said.
“We will do our best to establish a virtuous cycle structure in which the creation of benefits for members leads to the growth of the Korean construction industry.”
In the meantime, CG announced that it donated a total of 700 million won to the Korean Red Cross from 2011 to 2022.
The funds included donated money from CG employees and some of CG’s social contribution budget. CG’s donations are being used for CG’s Hope Dream House Program, which improves the residential environments of low-income families and the Hope Dream Partnership, providing daily necessities to grandparents who live with their grandchildren.
CG has created comfortable living environments for about 250 households in the low class through home repairs and received the highest honorary medal from the Red Cross in 2018 by providing daily necessities to about 220 households through a triangular relationship among CG, the Red Cross and families in need.
CG’s social contribution activities took a short break due to social distancing due to the COVID-19 pandemic but this year, CG resumed them as the social distancing was eased. CG plans to actively restart face-to-face volunteer work this year.
In particular, they plan to spend 50 million won this year to actively participate in the Hope Dream House Program and the Hope Dream Partnership among others.
CG will steadily improve living environments by repairing 20 households in four regions including Seoul, and donate daily necessities to grandparents who live with their grandchildren across the country.
CG is a special corporation established in 1963 according to the Construction Guarantee Act due to a need for a construction-specialized financial institution that would lead the industrialization of Korea which was in ruins after the Korean War in 1950.
It is a construction-specialized financial institution where members are both shareholders and clients.
By supplementing insufficient credit of constructors and protecting owners from risks and to enable smooth progress in contracted work and projects, CG is contributing to the growth of the Korean construction industry and furthermore, the Korean economy.
CG is running the Construction Management Training Center to advance construction technology and cultivate construction professionals. The center opens up an even brighter future for the Korean construction industry.
Based on a systematic education system, it provides necessary training services and cultivates talents who will lead the future of the Korean construction industry.
_건설공제조합 임직원들의 희망드림 하우스.jpg)
_건설회관 본사.jpg)
