쌍용건설

By Seongjin Lee, CEOScore Daily

 

 

Ssangyong E&C (Chairman & CEO S. Joon Kim) has remained financially sound and has had zero spending on interest expenses for two consecutive years.
On May 2, CEOScore (CEO Juguen Park), a research firm specializes in business performance analysis, reported that the company has had zero spending on interest expenses in the previous calendar year. The analysis was conducted on the 352 companies that had filed a business report (or an audit report) among top 500 Korean companies in total revenue.

 

The analysis also revealed that Ssangyong E&C was the only construction company that had incurred zero interest expenses over the same period.

 

After it was acquired by the Investment Corporation of Dubai (ICD) in 2015, Ssangyong E&C received a CoD from the ICD while it was working its way out of court receivership. Free from the burdens of debt obligations, Ssangyong E&C made a quick financial recovery, posting profits the following year.

 

The company’s debt-to-equity ratio, which climbed up to 1288.5 percent before the CoD, also fell sharply to 280.7 percent in 2015 and declined further to 247.7 percent in 2017.

 

Ssangyong E&C plans to incur no debt obligations of its own and carry out projects without external financing to avoid the same type of financial woes that originated from PF loan guarantee, which eventually placed the company under court receivership.

 

“Taking lessons from our past experience with financial risks associated with debt obligations, Ssangyong E&C is avoiding projects that involve project financing. We only undertake projects with great profit potentials and carry them out with no external financing,” says a Ssangyong executive.