PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩90 per share · Prices as of the 2026-10-02 close
Revenue continues to shrink amid a self-development project vacuum, while net profit has recovered from its low point, leaving the timing of monetizing land holdings as the key variable for future earnings.
2025 revenue fell 25.6% year over year to KRW 387.3 billion, but net profit attributable to owners rose to KRW 26.1 billion from KRW 18.3 billion, marking a profit recovery trend.
Revenue has declined for five consecutive quarters from 2025Q2 through 2026Q2, with 2026Q2 revenue of KRW 69.8 billion sharply lower than the KRW 105.4 billion recorded in 2025Q2.
Self-developed projects such as Pyeongtaek Brain City Vista Dongwon and Ulsan Mugeo Vista Dongwon have repeatedly seen weak subscription results and presale suspensions, prolonging the self-development gap.
Order backlog remains around KRW 2 trillion and the company has maintained a conservative balance sheet with cash exceeding total borrowings, but 2025 operating cash flow turned negative due to unsold inventory burdens at self-developed sites.
The 2026 construction sector is expected to see a modest, public-sector-led recovery, but non-capital regions such as Busan, Ulsan and South Gyeongsang face limited recovery due to accumulated unsold inventory.
Founded in 1975 as the first company to obtain a housing construction license in Busan, Dongwon Development has held the top position in the Busan-Ulsan-South Gyeongsang region and listed on KOSDAQ in 1994.
The company grew through a self-development model of securing land, then handling development, construction and presale directly, with founder Chang Bok-man long known for acquiring land sites five to six years ahead of presale and personally reviewing basic apartment designs.
In recent years, however, the revenue contribution of self-developed projects has sharply declined, shifting the business structure toward public and contracted construction, with CEO Park Young-bong—a former Busan Bank senior executive vice president—joining as co-CEO to reinforce financial and development management capabilities.
The company uses the brands Dongwon Royal Duke and Vista Dongwon, and is currently constructing projects such as Changwon Mudong, Haeundae Jungdong, and Kyungsung University–Pukyong National University Station Vista Dongwon, maintaining an order backlog of roughly KRW 2 trillion.
In an attempt to diversify beyond its regional base, the company opened a Seoul office in 2019 before withdrawing amid rising construction costs and economic downturn, and is now attempting re-entry into the greater Seoul area through the Pyeongtaek Brain City residential development project.
The largest shareholder is second-generation Vice Chairman Jang Ho-ik (16.65% stake), while founder Chang Bok-man (0.95%) continues to serve as co-CEO, an unusual separation of ownership and management control that has persisted for over two decades.
Competitively, the company has been the regional leader in construction capability rankings for eight consecutive years since 2018, though it lags national large-cap builders in overall revenue scale and metropolitan-area exposure.
More recently, the company has strengthened its dedicated bidding team for contracted construction to offset the self-development vacuum with public and private contract volume.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩105.4B | ₩4.3B | 4.1% |
| 2025Q3 | ₩97.2B | ₩4.5B | 4.7% |
| 2025Q4 | ₩93.9B | ₩3.8B | 4.0% |
| 2026Q1 | ₩74.5B | ₩5.4B | 7.3% |
| 2026Q2 | ₩69.8B | ₩2B | 2.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩581.5B | ₩83.9B | ₩66.9B | 14.4% | 6.6% | 41.0% |
| 2023 | ₩736.6B | ₩30B | ₩42.6B | 4.1% | 4.1% | 38.1% |
| 2024 | ₩520.4B | ₩21B | ₩18.3B | 4.0% | 1.8% | 31.7% |
| 2025 | ₩387.3B | ₩17.1B | ₩26.2B | 4.4% | 2.5% | 40.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-22
Consolidated revenue in 2025 was KRW 387.3 billion, down 25.6% from KRW 520.4 billion in 2024. Operating profit for the same period was KRW 17.1 billion, down from KRW 21.0 billion a year earlier, though the operating margin improved slightly to 4.4% from 4.0% in 2024.
Net profit attributable to owners rose to KRW 26.1 billion from KRW 18.3 billion in 2024, indicating a profit recovery past the 2024 low point. This nevertheless remains well below the net profit levels of 2022 (KRW 66.9 billion) and 2023 (KRW 42.6 billion).
On a quarterly basis, revenue declined for five consecutive quarters, from KRW 105.4 billion in 2025Q2 to KRW 97.2 billion in 2025Q3, KRW 93.9 billion in 2025Q4, KRW 74.5 billion in 2026Q1, and KRW 69.8 billion in 2026Q2.
Net profit attributable to owners, by contrast, held relatively steady at KRW 8.3 billion in 2025Q3, KRW 5.6 billion in 2025Q4, KRW 6.1 billion in 2026Q1, and KRW 5.9 billion in 2026Q2, a smaller decline than revenue.
Notably, in 2026Q2 operating profit was only KRW 2.0 billion, yet net profit reached KRW 5.9 billion, suggesting non-operating items played a significant role in supporting the bottom line.
On an annual cash flow basis, operating cash flow turned negative to -KRW 44.2 billion in 2025 from +KRW 96.1 billion in 2024, reflecting the burden of unsold inventory at self-developed sites and reduced presale revenue recognition.
In the domestic construction sector, following an approximately 9% decline in construction investment in 2025, analysts project a limited rebound of about 2% growth to KRW 269 trillion in 2026.
The recovery is expected to be driven mainly by expanded public-sector orders, with the 2026 SOC budget rising 7.9% year over year, while the private sector's overall recovery pace is likely to remain limited due to financing cost burdens from high interest rates, tighter regulations, and accumulated unsold inventory.
Regionally, the greater Seoul area is expected to see prices rise about 2-3% amid supply delays and recovering buying sentiment, while non-capital regions are expected to stay flat or decline slightly, underscoring a clear market polarization.
This trend is corroborated by statistics showing that as of late April, unsold housing units totaled 65,179, with about 73%, or 47,881 units, concentrated in non-capital regions.
Reports in early 2026 also noted that small and mid-sized builders launching presales at the start of the year suffered a string of poor subscription results, reigniting recurring concerns about a construction industry crisis amid regulatory pressure, rising construction costs, and mounting unsold inventory.
Dongwon Development's home market of Busan, Ulsan and South Gyeongsang is a representative non-capital region, and the effects of this regional imbalance have also been observed at the company's own project sites.
At the same time, some views suggest the construction sector may be entering a new residential property cycle, citing supply shortages and sustained demand as medium-term investment points, indicating that assessments of whether the cycle has bottomed out differ across institutions.
The company has stated plans to resume expansion, marking its 50th anniversary as a turning point, with an intention to actively participate in large-scale development projects using real estate project financing (PF) loans and to expand its PF guarantee scale over the medium term.
However, the Pyeongtaek Brain City Vista Dongwon project, seen as an early test of this strategy, closed its special supply subscription with a weak 0.04-to-1 competition ratio, and a company representative explained that the overall Pyeongtaek Brain City presale market has been very weak, affecting Vista Dongwon as well, and that rather than forcing the project forward with additional borrowing, the company views it as a long-term project for which it will pursue further presales.
Another self-developed project, Ulsan Mugeo Vista Dongwon, suspended presales in June 2024, resumed last year but closed with a weak 0.12-to-1 competition ratio before being suspended again, with the company planning to decide on resumption depending on next year's regional housing market conditions, making the resumption timing a key point to watch going forward.
The company plans to broaden its profit portfolio by combining marketing efforts to raise contract rates with strengthening its dedicated bidding team for contracted construction.
The timing and scale of new development of land holdings, which account for a large portion of total assets, remains the key variable for future revenue and profit recovery.
If expanded public-sector orders and redevelopment project wins continue into the second half of 2026, some revenue defense in the contracted construction segment appears feasible, but the timing of a full-scale restart of the self-development segment remains uncertain.
Dongwon Development's shares tend to trade at a significant discount to book value, positioned below net asset value.
Even as revenue scale contracts, net profit has shown a recovery from its low point, suggesting the company may be moving away from the low earnings multiple range that formed during its recent earnings downturn.
On the dividend front, the company has a track record of consistent cash dividend payments in recent years, making the continuity of this dividend policy—underpinned by a stable balance sheet—a point of interest.
However, given the simultaneous presence of revenue contraction from the self-development gap and unsold inventory burdens in regional markets, the ongoing discount to net asset value can be interpreted as reflecting market concerns over delays in restarting self-developed projects.
The progress of monetizing land holdings and the flow of contracted construction orders going forward are likely to be key variables in determining whether this valuation discount narrows or persists.
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 2026-08-22
Net profit rose to KRW 26.1 billion in 2025 from a 2024 low of KRW 18.3 billion, and the operating margin improved slightly to 4.4% from 4.0%. The fact that profit has been defended even as revenue contracts can be interpreted as a result of cost management and an expanded share of contracted construction. Quarterly net profit in the first half of 2026 also remained resilient relative to operating profit.
The company has built an order backlog exceeding KRW 2 trillion and consistently maintained a stable financial structure in which cash holdings exceed total borrowings. Its current ratio reached 1070.5% at the end of last year, reflecting favorable short-term liquidity.
This financial capacity could work in the company's favor when raising PF loans for participation in large-scale development projects.
The company is considered one of the most aggressive builders in pursuing expansion into the greater Seoul area, currently attempting to win projects in Seoul and the metropolitan region in line with expectations of rising apartment prices there.
The Pyeongtaek Brain City self-development project alone, through its contracted construction value, could contribute to revenue for several years going forward, and the expanded 2026 public SOC budget could provide a favorable environment for securing contracted construction orders.
Pyeongtaek Brain City Vista Dongwon closed its subscription with a 0.04-to-1 competition ratio, and Ulsan Mugeo Vista Dongwon likewise closed with a 0.12-to-1 ratio before its project was suspended again.
As the restart of self-developed projects continues to be delayed, it remains difficult to predict when higher-margin presale revenue might recover.
Revenue declined for five consecutive quarters, from KRW 105.4 billion in 2025Q2 to KRW 69.8 billion in 2026Q2. This suggests that the gap left by self-developed presale revenue has not been fully replaced by contracted construction revenue.
If revenue contraction continues, fixed cost burdens could increase, potentially destabilizing the recent improvement in operating margin.
Annual operating cash flow turned negative to -KRW 44.2 billion in 2025 from +KRW 96.1 billion in 2024.
Analysis has attributed part of this to a housing market downturn hitting the Busan and Ulsan regions that negatively affected operating cash flow, indicating a risk that cash generation could continue to weaken if the recovery of the company's core Busan-Ulsan-Gyeongnam property market is delayed.
Since a substantial portion of company revenue is concentrated in non-capital regions such as Busan, Ulsan and South Gyeongsang, it is directly exposed to market conditions in which about 73% of all unsold housing units are concentrated outside the capital area.
A widening gap in recovery speed between the metropolitan and regional markets could delay the company's earnings recovery.
The company plans to expand its PF guarantee scale over the medium to long term, which is linked to the point that as PF guarantee scale grows, the importance of managing contingent liability risk increases correspondingly.
As participation in large-scale development projects increases, the potential for presale failures to translate into financial burdens also grows.
The largest shareholder, Vice Chairman Jang Ho-ik, holds a 16.65% stake, and while share succession took place long ago, founder Chang Bok-man has continued to serve as CEO.
This separation between largest shareholder status and the CEO role has persisted for over two decades, making future management succession and any changes to the decision-making structure a variable investors should continue to monitor.
Check whether the revenue contraction trend continues in the third-quarter results and whether the improvement in cost ratio and operating margin is sustained.
Monitor whether Ulsan Mugeo Vista Dongwon resumes presales and how the company assesses regional housing market conditions.
Track progress in additional presales and contract rates for Pyeongtaek Brain City Vista Dongwon, as well as the financing status of the project's developer.
Check for any disclosures or announcements regarding the launch of new self-developed projects on the company's substantial land holdings.
Monitor whether the company secures new contracted construction orders amid expanded government SOC budget execution and redevelopment project awards.
Dongwon Development finds itself in a mixed position: revenue has contracted for five consecutive quarters due to the self-development vacuum, while net profit has shown a recovery trend past its 2024 low.
On the financial side, stability metrics such as a net cash position and high current ratio remain intact, but weak presale results at self-developed sites in Pyeongtaek Brain City and Ulsan Mugeo leave the timing of a self-development restart uncertain.
The 2026 construction sector is expected to see a modest, public-sector-led recovery, but the company's core non-capital markets such as Busan-Ulsan-Gyeongnam are likely to continue facing unsold inventory pressure.
The company plans to expand its scale through strengthened contracted construction bidding and participation in large-scale development projects, though this could also increase the burden of managing contingent liabilities from greater PF usage.
The future direction of earnings appears likely to hinge heavily on the timing of monetizing land holdings and the pace of recovery in regional housing markets. Investors will need to continue monitoring upcoming quarterly results and disclosures related to the resumption of self-developed projects.
Report written 2026-09-05 · Data as of 2026-09-04
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