New Jai: Most Naked
- GS Engineering & Construction (GS E&C) is undergoing a transformation, prioritizing quality control and communication with residents, according to company statements.
- Since taking the helm in October 2023, CEO Hur Yun-hong has emphasized a hands-on approach, challenging the customary hierarchical structure within the construction industry.
- Hur's commitment is evident in his interactions with employees.
GS E&C Focuses on Quality,Communication under CEO Hur Yun-hong
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GS Engineering & Construction (GS E&C) is undergoing a transformation, prioritizing quality control and communication with residents, according to company statements. The South Korean construction giant is actively addressing past issues to bolster its reputation and stabilize both its image and performance.
CEO Prioritizes Field Engagement
Since taking the helm in October 2023, CEO Hur Yun-hong has emphasized a hands-on approach, challenging the customary hierarchical structure within the construction industry. He has focused on direct engagement at construction sites.
Hur’s commitment is evident in his interactions with employees. For the second consecutive year, he participated in an on-site ceremony, a first for GS E&C as its founding. Eschewing formal attire, Hur wore work clothes at last year’s event and joined employees in morning exercises, generating considerable buzz, according to company reports. This year’s ceremony,held at a plant site in Seosan,South Chungcheong Province,saw Hur personally serving fish cakes from a snack truck to the staff.
Following the ceremony, more than 60 GS E&C executives dispersed to construction sites nationwide for two weeks, focusing on quality and safety management and fostering open communication, according to the company.
Safety Inspections and ‘First-Time Refresh’ campaign
Beyond the New Year’s ceremony, Hur and other executives conduct monthly safety inspections at construction sites every first Thursday, reinforcing a culture that values safety and quality through professional field support, according to GS E&C.
GS E&C introduced the “First-Time Refresh” campaign, initiated in October of last year. this program proactively addresses issues in landscaping, community facilities, and parking lots in complexes that are one to two years old. The company aims to enhance customer satisfaction by providing customer service support during evenings and holidays to resolve early move-in defects, according to company statements.
GS E&C faced scrutiny following issues with an underground parking lot in Incheon Geomdan new Town in April 2023. Upon his appointment in October of that year, Hur pledged change, stating, “There are problems and answers in the field.” The company subsequently launched “New Zai” last year, revamping the logo and philosophy of its flagship apartment brand, XI, for the first time in 22 years.
Zero Defect Goal
These efforts toward field-centered quality management are reportedly yielding positive results. Once facing criticism, the company’s apartments are now perceived differently, according to industry observers.
According to the Ministry of Land, Infrastructure, Transport and Tourism’s deliberation dispute coordination committee, GS E&C recorded zero defect decisions for the six-month period from September 2024 to February 2025. This represents a significant betterment from the 14 defect decisions recorded in the previous six-month period (March to August 2024) and a 62% decrease from the 93 cases recorded between September 2023 and February 2024.
Earnings Outlook
GS E&C is scheduled to announce its first-quarter earnings on April 30. The investment banking (IB) industry projects consolidated sales of ₩3.1 trillion and an operating profit of ₩67.5 billion. These figures represent slight decreases of 0.1% and 4%, respectively. Operating profit is expected to fall about 8% short of the recently lowered consensus estimate of ₩73.1 billion.
Yuanta securities anticipates improved earnings after the second quarter, driven by increased housing construction, new business ventures, and plant processes. “It may be disappointing to see the first quarter’s results, but it is likely to rebound after the second quarter, when the cost settlement and the housing division contract are scheduled,” the firm stated.
The company’s order book remains strong.In January, GS E&C secured redevelopment projects in Busan Suyeong 1 district (₩637.4 billion) and Seoul China’s 5th District (₩649.8 billion). The company also recently won a contract to reconstruct the Samhwan Garak Apartment complex. Additional orders are anticipated, potentially exceeding ₩4 trillion for the year. The “New Zai” initiative is reportedly gaining recognition in the order landscape following the Gumdan incident.
A GS E&C official stated, “We will enhance brand value through strict quality control and performance capacity with the goal of customer orientation and trust.” The official added, ”We will continue our efforts to understand our lives based on continuous communication for customer satisfaction.”
Billion.
Yuanta securities anticipates improved earnings after the second quarter, driven by increased housing construction, new business ventures, and plant processes. “It may be disappointing to see the first quarter’s results, but it is likely to rebound after the second quarter, when the cost settlement and the housing division contract are scheduled,” the firm stated.
The company’s order book remains strong.In January, GS E&C secured redevelopment projects in Busan Suyeong 1 district (₩637.4 billion) and Seoul China’s 5th District (₩649.8 billion). The company also recently won a contract to reconstruct the Samhwan Garak Apartment complex. Additional orders are anticipated, potentially exceeding ₩4 trillion for the year. The “New Zai” initiative is reportedly gaining recognition in the order landscape following the Gumdan incident.
A GS E&C official stated, “We will enhance brand value through strict quality control and performance capacity with the goal of customer orientation and trust.” The official added, ”We will continue our efforts to understand our lives based on continuous communication for customer satisfaction.”
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Financial Performance
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GS E&C: A Turnaround Story Focused on Quality and Customer Trust
Are you curious about GS Engineering & Construction (GS E&C) and the changes happening within this South Korean construction giant? This article dives deep into their recent initiatives under CEO Hur Yun-hong, focusing on quality, customer satisfaction and future prospects.
Q: What significant changes is GS E&C undergoing currently?
A: GS E&C is undergoing a significant conversion, spearheaded by CEO Hur Yun-hong. The company is prioritizing:
Enhanced Quality Control: Focusing on addressing past issues and preventing future defects.
Improved communication: Fostering better communication both internally and with residents/customers.
Customer-Centric Approach: Aiming to enhance customer satisfaction and build trust.
Q: Who is Hur Yun-hong, and what’s his impact on GS E&C?
A: Hur Yun-hong became CEO of GS E&C in October 2023. His impact has been substantial, with an emphasis on:
Hands-on Leadership: He has moved away from the conventional construction industry hierarchy, spending time directly at construction sites, and engaging with employees.
Visible Commitment: He has actively participated in on-site events, like serving fish cakes to employees, displaying a commitment to understanding on-site issues firsthand.
Prioritizing both Quality and Safety: Conducts monthly safety inspections.
Q: What is the “First-Time Refresh” campaign, and why is it important?
A: The “First-Time Refresh” campaign, introduced in October last year, actively addresses issues in:
Landscaping
Community facilities
Parking lots
in complexes that are one to two years old. The goal is to improve customer satisfaction by resolving early move-in defects, showcasing a commitment to long-term customer value.
Q: Could you describe what happened with the Incheon Geomdan new town and how GS E&C has responded?
A: In April 2023, GS E&C faced scrutiny due to issues with an underground parking lot in Incheon Geomdan new Town. This prompted a pledge from CEO Hur Yun-hong to initiate significant change. The company subsequently revamped its flagship apartment brand, XI, launching ”New Zai” which revamped the logo and brand philosophy for the first time in 22 years.
Q: What is ”new Zai,” and how does it relate to GS E&C’s transformation?
A: “New Zai” is the revamped apartment brand of GS E&C, XI. It is a key element of their transformation, representing renewed focus on quality and customer expectations. The branding reflects the company’s attempt at a positive change in image in the market after facing previous issues regarding quality.
Q: How has GS E&C’s focus on quality control translated into tangible results?
A: The company’s field-focused quality management appears to be yielding positive results.
According to the Ministry of Land,Infrastructure,Transport and Tourism,GS E&C recorded zero defect decisions for the six-month period from September 2024 to February 2025.
That is a 62% decrease from the 93 cases recorded between September 2023 and February 2024.This shows a significant improvement in quality.
Q: What is GS E&C’s financial outlook, and what are the analysts’ expectations?
A: GS E&C is scheduled to release its first-quarter earnings on April 30.
Projected Sales: The investment banking (IB) industry predicts consolidated sales of ₩3.1 trillion.
Projected Operating Profit: ₩67.5 billion.
These figures indicate decreases of 0.1% and 4% respectively. Operating profit is expected to fall short by 8% of the estimated ₩73.1 billion consensus estimate.
Q: What factors might influence GS E&C’s earning potential in the coming quarters?
A: Analysts like Yuanta Securities predict improved earnings after the second quarter, largely fueled by:
Increased housing construction
New business ventures
Plant processes
Q: What is GS E&C’s current order book, and what are the company’s future prospects?
A: GS E&C has a robust order book, including:
Redevelopment projects in Busan Suyeong 1 district (₩637.4 billion)
Seoul China’s 5th District (₩649.8 billion)
* Recently won a contract to reconstruct the Samhwan Garak Apartment complex.
additional orders are anticipated, possibly exceeding ₩4 trillion for the year. The “New Zai” initiative is improving recognition in the order landscape.
Q: What is GS E&C’s overall goal and approach to customer satisfaction?
A: A GS E&C official stated,”We will enhance brand value through strict quality control and performance capacity with the goal of customer orientation and trust.” The official added, “We will continue our efforts to understand our lives based on continuous communication for customer satisfaction.” The company is focusing on brand value, quality control and customer-focused efforts.