KOSPIConstruction & Materials002410

Bumyang Construction

₩1,935 0.00%2026-10-02 close

Market Cap

₩53.2B

Turnover

₩0

Volume

0 shares

Shares out.

27.5M

PER

—

PBR

—

EPS

-₩1,911

Dividend Yield

0.00%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩0 per share · Prices as of the 2026-10-02 close

Report overview

Delisting Ruling Meets Rehabilitation and Sale Process

BumYang Construction has received a delisting ruling from the Korea Exchange following two consecutive years of disclaimed audit opinions and has filed for an injunction to suspend the ruling's effect, while court receivership and an M&A sale process proceed in parallel.

1
On September 21, 2026, the KOSPI Listing Committee decided to delist the company, and the next day it filed an injunction (case No. 2026Kahap1585) with the Seoul Southern District Court to suspend the ruling.
2
Disclaimed audit opinions for both fiscal 2024 and 2025 triggered overlapping delisting grounds, and confirmed financials show total equity of negative 69.47 billion won at end-2025, indicating full capital impairment.
3
Court receivership proceedings continue at the Suwon Rehabilitation Court, with the rehabilitation plan submission deadline extended to October 23, 2026, while a second public M&A sale process led by Samil PwC is underway in parallel.
4
Revenue fell sharply from 119.75 billion won in 2022 to 71.84 billion won in 2025, with operating losses recorded in every year from 2022 through 2025.
5
The cumulative net loss attributable to owners over the latest four quarters (2025Q3–2026Q2) reached 55.91 billion won, though the single quarter of 2026Q2 turned to a net profit.

Business structure

BumYang Construction was founded in 1958, grew primarily through public-sector construction contracts, and listed on the KOSPI in 1988 as a small-to-mid-cap builder.

The company operates civil engineering and building construction segments, while its subsidiaries engage in logistics warehouse leasing, modular housing manufacturing, and other businesses including real estate development and leasing.

The civil engineering segment handles infrastructure such as roads, railways, and ports, while the building segment constructs residential and medical facilities among others.

The company has supplied public-private housing in cities such as Cheonan and Gwangmyeong and holds a track record of public contracts including the Cheonan City Hall project.

It previously underwent a corporate rehabilitation process after the global financial crisis in 2011 and returned to the market in 2014, making the current proceeding its second rehabilitation.

Competitively, the firm sits between large national contractors and regional mid-tier builders in bidding for both public and private contracts, and is generally categorized as a smaller player with thinner financial buffers amid the recent construction downturn.

Under the ongoing rehabilitation process, a substantial number of construction contracts have been terminated. The accumulation of these contract cancellations leaves the company with the task of rebuilding its revenue base once normalization occurs, if it occurs.

Earnings trend

Quarterly revenue · Operating profit

₩16.3B-₩23.1B25Q2₩12.9B-₩3.3B25Q3₩6.2B-₩24.5B25Q4₩7.7B₩500M26Q1₩1B-₩500M26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩119.8B-₩12.3B2022₩120.8B-₩10.4B2023₩101.4B-₩38.2B2024₩71.8B-₩51.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩16.3B	-₩23.1B	−141.5%
2025Q3	₩12.9B	-₩3.3B	−25.8%
2025Q4	₩6.2B	-₩24.5B	−395.7%
2026Q1	₩7.7B	₩500M	6.8%
2026Q2	₩1B	-₩500M	−46.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩119.8B	-₩12.3B	-₩8B	−10.3%	−11.3%	202.8%
2023	₩120.8B	-₩10.4B	-₩9.1B	−8.6%	−14.7%	210.5%
2024	₩101.4B	-₩38.2B	-₩46.3B	−37.7%	−247.4%	893.0%
2025	₩71.8B	-₩51.3B	-₩87.5B	−71.4%	—	−248.2%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-30

Earnings analysis

Based on confirmed financials, revenue was 119.75 billion won in 2022, 120.76 billion won in 2023, 101.36 billion won in 2024, and 71.84 billion won in 2025, declining sharply for two straight years after peaking in 2023.

Operating losses were recorded in all four years from 2022 through 2025, widening from -12.33 billion won in 2022 and -10.43 billion won in 2023 to -38.23 billion won in 2024 and -51.31 billion won in 2025.

Net losses attributable to owners similarly deepened from -8.05 billion won in 2022 and -9.11 billion won in 2023 to -46.35 billion won in 2024 and -87.50 billion won in 2025.

Total equity was positive at 18.85 billion won (owners' equity 18.73 billion won) at end-2024 but flipped to negative 69.47 billion won (owners' equity -69.59 billion won) at end-2025, marking full capital impairment.

On a quarterly basis, 2025Q2 showed revenue of 16.32 billion won with an operating loss of -23.08 billion won and a net loss attributable to owners of -22.54 billion won, followed by a somewhat smaller loss in 2025Q3 with revenue of 12.89 billion won and an operating loss of -3.32 billion won.

However, 2025Q4 saw revenue collapse to 6.18 billion won while operating loss widened again to -24.45 billion won and the net loss attributable to owners ballooned to -52.64 billion won, heavily damaging the full-year result.

In 2026Q1, revenue was 7.65 billion won with operating profit turning positive at 0.52 billion won, though the net loss attributable to owners continued at -0.76 billion won; in 2026Q2 revenue fell sharply to 1.00 billion won and the operating result reverted to a loss of -0.46 billion won, yet the net result attributable to owners turned positive at 0.86 billion won.

The cumulative net loss attributable to owners over the latest four quarters (2025Q3–2026Q2) totaled 55.91 billion won, and the quarter-to-quarter swings in net income should be interpreted with the understanding that debt restructuring or asset-related non-operating items tied to the court rehabilitation process may affect individual quarterly figures.

On the cash flow side, operating cash flow was negative in 2022 (-58.39 billion won), 2023 (-6.09 billion won), and 2024 (-16.63 billion won) before turning positive at 15.90 billion won in 2025.

Industry analysis

Korea's construction sector has faced accumulating financial strain, particularly among small and mid-cap builders, amid project-financing (PF) defaults, a buildup of unsold housing units, and rising cost pressures.

According to the Korea Exchange, 12 KOSPI-listed companies for fiscal year 2025 triggered delisting grounds due to disclaimed or qualified audit opinions, and among them, four companies—Keumyang, KC Green Holdings, BumYang Construction, and Sambu Construction—faced delisting review by the Listing Committee after two consecutive years of disclaimed opinions once their improvement periods ended.

Notably, Sambu Construction, which shared the same two-year disclaimer status as BumYang, is also undergoing rehabilitation and seeking a new investor, illustrating a broader pattern of financially distressed mid-sized builders simultaneously pursuing M&A-based capital infusions.

On KOSDAQ, 42 companies for fiscal 2025 likewise triggered delisting grounds, underscoring a broader acceleration in the exit of marginal companies across sectors including construction and building materials.

Within this environment, BumYang has historically combined public infrastructure contracts with private housing supply, but the termination of numerous construction contracts since the rehabilitation filing has left it in a relatively disadvantaged competitive position for new orders.

As with peer mid-sized builders in distress, the path to normalization is likely to depend heavily on court approval of a rehabilitation plan and the success of efforts to attract outside capital.

Outlook

The company is currently undergoing rehabilitation proceedings at the Suwon Rehabilitation Court, with the rehabilitation plan submission deadline—repeatedly postponed from its original schedule—now reset to October 23, 2026.

In parallel, following the collapse of its first sale attempt in April, a second public sale process led by Samil PwC as sale advisor is underway, reportedly leaving open options to sell BumYang Construction together with its wholly owned subsidiary BumYang D&C, or separately.

On the listing front, after the Listing Committee decided on September 21, 2026 to delist the company, it filed an injunction the following day with the Seoul Southern District Court to suspend the ruling's effect; if the court grants the request, delisting-related procedures could be paused until a final ruling, whereas a rejection would allow the exchange's process to continue.

No separate revenue or profitability guidance from the company has been confirmed, and future performance appears to hinge heavily on the success of attracting outside capital through M&A and on court approval of a rehabilitation plan.

Given that a substantial number of construction contracts have already been terminated during the rehabilitation process, rebuilding the revenue base through new orders is likely to be the primary task even if normalization is achieved.

Because trading in the shares remains suspended, the resumption of trading itself is also tied to the progress of both the court and exchange proceedings.

Valuation

PER

—

PBR

—

ROE

—

EPS

-₩1,911

BPS

—

Dividend per share

₩0

Given that confirmed financials show total equity turning negative at end-2025—indicating full capital impairment—net-asset-based metrics such as the price-to-book ratio sit in territory where conventional interpretation is difficult.

Likewise, with operating losses and net losses persisting for four consecutive years, earnings-based metrics such as the price-to-earnings ratio offer limited scope for standard comparison. No dividends have been paid, which also limits the relevance of any dividend-yield-based comparison.

In addition, because the shares remain under trading suspension pending delisting-related procedures, the displayed price should be understood as reflecting the last reference price before suspension rather than an actively traded market price.

Under these circumstances, non-financial events—such as whether the rehabilitation plan is approved, whether the M&A sale is completed, and the outcome of the injunction proceeding—may serve as more informative reference points for gauging the company's future direction than valuation multiples themselves.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-30

Bull factors

Potential Capital Infusion via M&A

The company is running a second public sale process with Samil PwC as sale advisor, leaving open options to sell BumYang Construction together with or separately from its subsidiary BumYang D&C.

If an acquirer is confirmed and the court approves the deal, this would open a path to resolving the full capital impairment through fresh capital.

A precedent exists in Sambu Construction, a peer facing a similar situation that has already signed an investment agreement, suggesting the market does not view this scenario as entirely implausible.

Room for Balance-Sheet Repair via Court-Led Debt Restructuring

The rehabilitation process allows debt to be restructured and operations reorganized under court supervision, and such procedural, non-operating factors may have contributed to the net profit attributable to owners turning positive in 2026Q2.

The turn to positive operating cash flow in 2025, after negative readings in prior years, is also a notable change to monitor from a liquidity perspective. Whether this pattern persists will need to be confirmed through subsequent quarterly results.

Track Record in Public Infrastructure and Housing Supply

The company holds a track record in infrastructure construction—roads, railways, and ports—as well as public-private housing supply in cities such as Cheonan and Gwangmyeong, and public contracts including the Cheonan City Hall project.

Should normalization occur, this existing track record could serve as a foundation for securing new orders. However, given the number of contracts terminated during the rehabilitation period, actual order recovery may take time.

Bear factors

Uncertainty Over the Delisting Ruling and Injunction Outcome

The Listing Committee of the Korea Exchange decided to delist BumYang Construction on September 21, 2026, and the company filed an injunction with the Seoul Southern District Court the following day to suspend the ruling.

Should the court reject the injunction, delisting-related follow-up procedures such as liquidation trading could proceed, and even if granted, it would take time before the underlying lawsuit is finalized. The shares have already been under trading suspension for an extended period.

Full Capital Impairment and Consecutive Disclaimed Audit Opinions

Confirmed financials show total equity of negative 69.47 billion won at end-2025, indicating full capital impairment, and the company received disclaimed audit opinions in both fiscal 2024 and 2025.

This has been a direct background factor behind the delisting grounds and also signals going-concern uncertainty from an accounting standpoint. Resolving the capital impairment would require structural measures such as attracting outside capital or court approval of a rehabilitation plan.

Erosion of the Operating Base and Sharp Revenue Decline

During the rehabilitation process, a total of nine construction contracts worth roughly 241.7 billion won were terminated, more than three times the 71.84 billion won in annual revenue recorded in 2025.

Revenue fell sharply from 119.75 billion won in 2022 to 71.84 billion won in 2025, and 2026Q2 revenue shrank further to around 1.00 billion won. With a substantial portion of existing work having already been lost, rebuilding the revenue base after any normalization remains an outstanding challenge.

Risk factors

Legal and Listing Risk

The direction of the delisting process will depend on the outcome of the injunction hearing at the Seoul Southern District Court and the progress of the subsequent underlying lawsuit. If the injunction is rejected, procedures such as liquidation trading could resume, which could directly affect shareholder value.

A separate listing eligibility review process also existed, and the overlapping of legal procedures is itself a source of uncertainty.

Financial and Accounting Risk

The company was in a state of full capital impairment as of end-2025, and disclaimed audit opinions in both fiscal 2024 and 2025 have raised ongoing concerns about accounting transparency. A delay in resolving the capital impairment could lead to further listing-related sanctions or credit deterioration. Total liabilities also stood at 172.44 billion won at end-2025, far exceeding total equity.

Business and Operational Risk

The termination of numerous construction contracts during the rehabilitation process has significantly damaged the revenue base and left the company at a competitive disadvantage in winning new orders. Failure to secure an M&A-based capital infusion could push back the timing of business normalization further.

Broader construction-sector risks related to project financing and unsold housing inventory also weigh on small and mid-sized builders.

What to watch next

Around October 23, 2026
Check the specific content of the rehabilitation plan to be submitted to the Suwon Rehabilitation Court and whether it receives approval from creditors and the court, as this is a key variable for gauging the direction of capital restructuring and debt adjustment.
Upon announcement of the injunction ruling
Check whether the Seoul Southern District Court grants or rejects the injunction (case No. 2026Kahap1585) to suspend the delisting decision's effect, as the outcome determines the direction of the trading suspension and any liquidation-trading procedures.
Upon receipt of letters of intent and selection of a preferred bidder in the second public sale
Check the results of letter-of-intent submissions and whether a preferred bidder is selected in the second public sale process advised by Samil PwC, as this provides direct evidence for assessing the likelihood of a successful outside-capital infusion.
When 2026Q3 preliminary results are disclosed
Once 2026Q3 revenue and profit/loss trends are disclosed, review the direction of results following the confirmed financial coverage window (through 2026Q2), keeping in mind that figures are not yet confirmed until formally disclosed.

Overall view

BumYang Construction triggered delisting grounds due to disclaimed audit opinions in both fiscal 2024 and 2025, leading to a delisting decision on September 21, 2026, and the company filed an injunction the following day to suspend the ruling's effect, with the legal dispute ongoing.

Separately, court rehabilitation proceedings at the Suwon Rehabilitation Court and a second public M&A sale process advised by Samil PwC are proceeding in parallel, with the rehabilitation plan submission deadline adjusted to October 23, 2026.

Based on confirmed financials, revenue fell sharply from 119.75 billion won in 2022 to 71.84 billion won in 2025, with operating losses recorded in all four years, and total equity turned to negative 69.47 billion won at end-2025, marking full capital impairment.

Quarterly results showed some fluctuation, including a brief operating profit in 2026Q1 and a brief net profit in 2026Q2, but the cumulative net loss attributable to owners over the latest four quarters still reached 55.91 billion won, indicating that the underlying loss-making trend persists.

Trading in the shares has been suspended for an extended period, and the future direction appears to depend heavily on the court's rulings on the injunction and rehabilitation plan approval, as well as on whether the M&A sale is completed. This content summarizes the facts based on confirmed disclosures and news reports.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-10-01 · Data as of 2026-09-30

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.