First-half operating profit rebounds to 97.4 billion won as company focuses on profitable urban renewal projects
POSCO E&C is strengthening its position in South Korea’s apartment remodeling market, combining a growing project portfolio with improved profitability and advanced construction technologies.
Since entering the remodeling market in 2014, the company has secured projects worth approximately 14.3 trillion won across 46 apartment complexes. Orders secured over the past three years alone totaled about 5.4 trillion won.
The expansion comes as remodeling is increasingly considered an alternative for aging apartment complexes, particularly in areas where high floor-area ratios make full reconstruction more difficult. Unlike conventional redevelopment, remodeling retains much of the existing building structure while upgrading residential space, parking facilities and structural performance.
Construction Experience Builds Remodeling Competitiveness
Apartment remodeling requires different engineering capabilities from new construction because contractors must reinforce and expand existing structures while maintaining their structural integrity.
POSCO E&C has completed three major remodeling projects and is carrying out construction or demolition work at several additional complexes, building experience across different types of urban renewal projects.
The company is also applying technologies including 3D laser scanning and Building Information Modeling to accurately analyze existing structures before construction begins.
For underground parking expansion and structural reinforcement, POSCO E&C has developed and adopted specialized construction methods designed to enable work within the limited space available beneath existing apartment complexes.
These capabilities are becoming increasingly important as more aging residential complexes in Seoul and the surrounding metropolitan area consider remodeling as an alternative to full reconstruction.
Profitability Improves in First Half
The expansion of its remodeling portfolio comes alongside a recovery in earnings.
POSCO E&C posted consolidated revenue of approximately 3.45 trillion won in the first half of 2026, down 6.3% from a year earlier. Operating profit, however, reached 97.4 billion won, reversing an operating loss of 66.9 billion won in the same period last year.
Net income also returned to positive territory at 52.8 billion won, compared with a net loss of 85.1 billion won a year earlier.
The company recorded operating profits in both the first and second quarters, supported in part by improved cost management in its building business. The results indicate that POSCO E&C is placing greater emphasis on profitability and project selection rather than simply expanding revenue.
Digital Technology Expands Role in Urban Renewal
Technology is becoming another important part of the company’s strategy as remodeling projects move from orders into construction.
The use of 3D scanning and BIM allows engineers to create detailed digital models of existing buildings before structural work begins. Such capabilities are particularly relevant to remodeling, where construction must accommodate existing columns, walls and foundations rather than starting from an empty site.
POSCO E&C is also expanding the use of AI, drones and digital construction technologies across its projects to improve site management, construction accuracy and safety.
The company plans to continue targeting major remodeling and urban renewal projects in Seoul and the surrounding metropolitan area while advancing construction methods tailored to aging apartment complexes.
With more of its accumulated remodeling orders moving into the construction stage, POSCO E&C is seeking to translate its 14.3 trillion won project portfolio into a longer-term business base while maintaining the earnings recovery seen in the first half of 2026.
