PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close
Seohee Construction, the largest player in Korea's regional housing cooperative business, faces regulatory easing and expanding shareholder returns even as core construction revenue contracts and governance risks persist.
2025 consolidated revenue fell to KRW 1.1001 trillion with the operating margin easing to 13.1%, but the company cleared a listing eligibility review and resumed trading in May 2026.
The surge in owners' net income to KRW 150.4 billion in Q2 2026 was driven largely by valuation gains on financial assets such as technology stock holdings, distinct from core construction improvement.
Order backlog rose roughly 49% in six months, and a Housing Act amendment passed by the National Assembly in August lowered the land-ownership requirement for housing cooperatives from 95% to 80%.
In July 2026 the company retired KRW 46.5 billion (9.7%) of treasury shares and is reviewing further retirement, an interim dividend, and a three-year shareholder return plan.
Non-financial risks remain, including the Sinansan Line collapse incident, legal issues tied to the founding family, and sizable guarantee exposure.
Seohee Construction is a KOSDAQ-listed mid-tier builder whose core business is contract construction for regional housing cooperatives (jiju-taek).
Since entering the business in earnest in 2008, the company has stated it has carried out roughly 80 projects nationwide totaling about 100,000 units, with cumulative orders of about KRW 10 trillion, making it the largest player in the segment.
On a standalone basis, revenue is concentrated in domestic building construction at 70.39%, followed by civil works at 14.15%, other at 11.27%, overseas plant at 3.52%, and domestic plant at 0.68%.
The core of building revenue is housing-cooperative contract work, with individual cooperative sites such as Pyeongtaek Jinwi, Icheon Anheung, Pyeongtaek Hwayang Central 2nd, and Yongin Yeokbuk 2nd forming major revenue sources.
In civil engineering, the company also participates in public infrastructure such as the Sinansan Line double-track railway private investment project, while a long-term contract to perform internal civil maintenance work for POSCO provides a stable revenue stream.
More recently, to reduce reliance on housing cooperatives, the company has expanded into public-private participation housing and urban redevelopment in Seoul, using its win of the Mok-dong street housing redevelopment project in Yangcheon-gu as a springboard to expand into small-lot housing renewal and trust-type redevelopment.
Its construction capability ranking has risen steadily, from 38th in 2019 to 16th in 2025. On governance, founder Lee Bong-kwan and related parties directly hold only about 6.6% of shares, but effective control through affiliates such as Yousung TNS, ENB Housing, Apple D&I, and Apple E&C reaches roughly 60%.
Separate from its construction business, the company also runs a financial asset portfolio centered on domestic and global technology stocks such as Samsung Electronics, SK Hynix, Nvidia, and Tesla.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩302.9B | ₩39.1B | 12.9% |
| 2025Q3 | ₩236.9B | ₩28.3B | 11.9% |
| 2025Q4 | ₩273.4B | ₩26.1B | 9.5% |
| 2026Q1 | ₩191.7B | ₩10.5B | 5.5% |
| 2026Q2 | ₩200.5B | ₩36.4B | 18.2% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩1.4T | ₩206.1B | ₩98.1B | 14.3% | 13.3% | 113.8% |
| 2023 | ₩1.4T | ₩228.2B | ₩126.7B | 15.8% | 15.0% | 82.4% |
| 2024 | ₩1.5T | ₩235.7B | ₩160.4B | 16.0% | 16.5% | 58.2% |
| 2025 | ₩1.1T | ₩144.4B | ₩121.9B | 13.1% | 11.2% | 49.6% |
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 edged up from KRW 1.4377 trillion in 2022 to KRW 1.4419 trillion in 2023 and KRW 1.4736 trillion in 2024, before falling sharply to KRW 1.1001 trillion in 2025. The operating margin improved from 14.3% in 2022 to 15.8% in 2023 and 16.0% in 2024, then declined to 13.1% in 2025 as revenue contracted.
Net income attributable to owners rose from KRW 98.1 billion in 2022 to KRW 126.7 billion in 2023 and KRW 160.4 billion in 2024, before pulling back to KRW 121.9 billion in 2025.
Over the same period the balance sheet actually improved, with the debt ratio falling steadily from 113.8% in 2022 to 82.4% in 2023, 58.2% in 2024, and 49.6% in 2025, while owners' equity grew from KRW 740.1 billion in 2022 to KRW 1.0836 trillion in 2025.
However, operating cash flow swung from an inflow of KRW 242.8 billion in 2024 to an outflow of KRW 3.8 billion in 2025, revealing a gap between book profit and actual cash generation.
On a quarterly basis, revenue declined from KRW 302.9 billion in Q2 2025 to KRW 236.9 billion in Q3, KRW 273.4 billion in Q4, and KRW 191.7 billion in Q1 2026, before ticking up to KRW 200.5 billion in Q2 2026.
Operating profit fell sharply to KRW 10.5 billion in Q1 2026 before recovering to KRW 36.4 billion in Q2, but owners' net income for that same quarter jumped to KRW 150.4 billion from KRW 18.7 billion in the prior quarter, far outpacing the operating recovery.
This is interpreted as reflecting valuation gains on financial assets such as technology stock holdings rather than improvement in the core construction business, and such non-operating factors played a substantial role in lifting the trailing four-quarter (Q3 2025 to Q2 2026) sum of owners' net income to about KRW 244 billion.
Korea's regional housing cooperative industry stands at a policy inflection point.
A Housing Act amendment passed by the National Assembly last August lowers the land-ownership requirement at the project approval stage from 95% to 80%, which is expected to shorten permitting timelines and ease negotiations with landowners.
Seohee Construction, with the industry's largest housing-cooperative track record, is among the companies cited as a potential beneficiary of this regulatory shift.
At the same time, oversupply in regional and outer-metropolitan areas and a sluggish housing market have delayed securing new work and project progress in some cases, raising the possibility of near-term revenue stagnation or decline.
Korea Investors Service assessed that, based on an order backlog of about KRW 3.6 trillion as of end-March 2026, the company could sustain consolidated annual revenue of roughly KRW 1 trillion.
The pre-sale rate at ongoing project sites stood at a solid 93.9% as of end-March 2026, suggesting lower pre-sale risk than typical housing contract projects. The rise in construction capability ranking from 38th in 2019 to 16th in 2025 reflects a shift in the company's industry standing.
However, given the high reliance on the regional housing cooperative business, continued monitoring of related regulatory changes is also cited as necessary.
The company has said that while this year's revenue will likely remain soft due to last year's delayed groundbreakings, roughly KRW 1 trillion worth of new construction starts underway in the first and second quarters of 2026 point to a gradual recovery.
The order backlog rose from KRW 1.2502 trillion at end-2025 to KRW 1.8626 trillion at end-Q2 2026, an increase of about 49% in six months. A company representative explained that after roughly three years of an order drought, the backlog is recovering, though it will take time before this is recognized as revenue.
Business diversification is also underway, with the company using its win of the Mok-dong street housing redevelopment project in Yangcheon-gu, Seoul, as a springboard for expansion into small-lot housing renewal and trust-type redevelopment.
On shareholder returns, in July 2026 the company decided to retire 22.22 million treasury shares, about 9.7% of total shares outstanding, worth roughly KRW 46.5 billion, and stated it is reviewing further treasury retirement, an interim dividend, and announcement of a three-year shareholder return plan.
Earlier in May, Korea Investment Trust Management sent a shareholder letter to Seohee Construction requesting full retirement of the 19.3% of shares held as treasury stock and a higher payout ratio, leaving the board's forthcoming specific return plan as a point of interest.
Owners' equity at Seohee Construction has grown steadily each year, while market capitalization trades at a level that falls short of that equity base, placing the share price below book value per share.
The price-to-earnings ratio based on the trailing four quarters sits below the company's typical historical trading band, though this needs to be weighed against the large financial-asset valuation gains booked in Q2 2026 that temporarily lifted net income.
The company has shown a stronger shareholder-return stance since the July 2026 treasury share retirement and dividend expansion, but whether such a policy can be sustained annually will depend on future earnings and cash flow.
The ownership structure, under which a substantial portion of dividends accrues to the founding family and related parties, is also worth considering when gauging the return actually felt by minority shareholders.
Without a recovery in core construction profitability, both earnings and valuation metrics could continue to show wide quarter-to-quarter swings tied to fluctuations in financial asset values.
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
The August Housing Act amendment lowered the land-ownership requirement for housing-cooperative project approval from 95% to 80%, expected to shorten permitting timelines. Seohee Construction, with the largest track record in the segment, is cited as a relative beneficiary. Its order backlog has also shown signs of recovery, rising about 49% in six months.
The debt ratio fell steadily from 113.8% in 2022 to 49.6% in 2025, alongside growing owners' equity over the same period. Korea Investors Service noted the company has maintained a negative net debt structure since 2016.
This provides a financial buffer to manage PF-related contingent liability burdens typical of the housing-cooperative business.
In July 2026 the company retired treasury shares worth about KRW 46.5 billion, equal to 9.7% of shares outstanding. The company has said it is reviewing further treasury retirement, an interim dividend, and a three-year shareholder return plan.
External pressure such as an institutional investor's shareholder letter is also cited as a factor supporting expanded returns.
Consolidated revenue in 2025 fell sharply year over year and the operating margin declined from 16.0% to 13.1%. Q1 2026 operating profit dropped significantly from the prior year, reflecting the impact of delayed groundbreakings on results. Recovery is expected only after new construction starts are recognized as revenue, likely from 2027 onward.
Owners' net income surged to KRW 150.4 billion in Q2 2026, but this was driven largely by valuation gains on financial assets such as technology stock holdings. If such factors, unrelated to core construction, continue to sway quarterly results, earnings volatility could widen with global equity market swings. This structure is cited as reducing the predictability of results.
Trading was suspended in August 2025 due to executive embezzlement allegations, and the shares only resumed trading in May 2026 after a listing eligibility review.
Although an improvement plan was submitted, criticism of insufficient board independence has continued as four members of the founding family were reappointed as inside directors. Such governance issues remain an obstacle to restoring market confidence.
Credit risk exposure related to financial guarantees is estimated at about KRW 1.5 trillion, with many guarantees tied to interim payment loans, bridge loans, and securitization for regional housing-cooperative subscribers. Total guarantee liabilities have exceeded KRW 2 trillion following additional guarantees issued.
A prolonged downturn in the real estate market could see repayment burdens at cooperatives or developers transfer to the contractor's balance sheet.
The company has been under investigation by relevant authorities over an underground structure collapse at Section 5-2 of the Sinansan Line double-track railway project.
The Ministry of Land, Infrastructure and Transport's construction accident investigation committee determined the incident was a man-made disaster from combined design error and construction/supervision defects. Additional cost burdens could materialize depending on the future scope of liability and follow-up measures.
Direct shareholdings by the founding family amount to only about 6.6%, yet effective control through affiliates reaches roughly 60%. A trial over executive embezzlement allegations is ongoing, and legal and regulatory risks persist, including a Fair Trade Commission investigation into internal transactions. Disputes with some housing cooperatives over project sites also remain a risk at ongoing developments.
Check the Q3 2026 earnings disclosure to assess the pace of revenue recovery and whether the impact of financial asset valuation gains/losses continues.
Watch for a specific board announcement on the three-year shareholder return plan and whether remaining treasury shares will be retired.
Monitor follow-up measures and the determination of liability scope from the Ministry of Land, Infrastructure and Transport regarding the Sinansan Line incident, and whether additional costs are reflected.
Confirm the specific implementing criteria for the eased land-ownership requirement and whether the actual reduction in permitting time materializes for new housing-cooperative groundbreakings.
Check whether, as the company has indicated, the 2026 new construction starts begin to be substantially reflected in revenue.
Seohee Construction enters a period marked by its leading position in the regional housing cooperative market, an improved balance sheet, and tailwinds from August's housing-coop deregulation and backlog recovery.
At the same time, core construction revenue and margins have been contracting since 2025, and the sharp rise in Q2 2026 net income is interpreted as largely attributable to financial asset valuation gains.
The KRW 46.5 billion treasury share retirement and consideration of further shareholder returns appear aimed at restoring market confidence, but governance centered on the founding family, sizable guarantee exposure, and risks tied to the Sinansan Line incident remain unresolved challenges.
The history of a listing eligibility review followed by resumed trading itself continues to draw market scrutiny over the effectiveness of governance improvements.
Key items to watch going forward include Q3 results, concretization of the shareholder return plan, follow-up on the Sinansan Line incident, and the actual groundbreaking impact of housing-coop deregulation.
Without a recovery in core construction profitability, both results and valuation metrics could continue to show quarter-to-quarter variation.
Report written 2026-09-05 · Data as of 2026-09-04
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