KUKDONG

KuKdong engineering & construction

In August, 2007, Kukdong E&C proudly joined

Woongjin Group. In January, 2008, Woongjin Group

launched a new corporate logo, and accordingly,

Kukdong E&C revealed its new corporate identity

at the same time.

Woongjin Group’s logo has been created with a

simple and unique style to leave a singular visual

impression that makes Woongjin Group stand out

from other companies.

Six symbols are arrayed around the Woongjin

company name. Their bright and vivid shapes ex-

press the positive, people-oriented nature of our

company. The unusual visual effect portrays Woongjin

Group’s creativity and unique perspective, as well

as its corporate culture, in which many different

elements merge and work together harmoniously.

The six symbols represent Work, Society, Change,

Organization, Challenge and Customers, toward all

of which we direct our dedicated efforts. The con-

joined circles symbolize the connectedness of the

companies within the Group, and of the companies

with their customers. The circles also represent

the infinity symbol, showing our will to lay a strong

foundation for endless expansion of our business.

01 InTrOduCTIOn 18 CEO'S mESSAGE 20 KEy TEChnOlOGy 30 buSInESS OvErvIEW 48 CSr 56 fInAnCIAl STATEmEnTS 64 AbOuT WOOnGJIn GrOuP

We create architectural value that Withstands the test of time.

let Kukdong E&C be your partner in the global era. for architectural creations to be considered

truly great, they must impress and inspire people over generations. As societies live with archi-

tectural masterworks for long periods, the architecture itself becomes a part of their history,

helping to define what it means for a society to flourish. Established in 1947, Kukdong E&C is an

integrated construction company with a broad record of accomplishment. for more than sixty

years, we have been working on ever more advanced construction projects that bring a bright

and prosperous future closer to reality. Society’s development can be tracked by the effort ex-

pended by Kukdong E&C. The facilities created by Kukdong E&C have become the spaces where

we work, play and live. They form a background for our history. As we look forward to a new era,

Kukdong E&C is prepared to meet its challenges with competitive technologies and a wealth

of accumulated experience. We are evolving into a world-class construction company with the

ability to shape a wonderful future. We will never waver from our vision and purpose. We are

creating an impressive legacy that will persist for ages to come, growing in value and contrib-

uting to society’s well-being. We invite you to meet the future together with one of the world’s

most creative and compassionate construction companies, Kukdong E&C.

construction Period 1971.03-1978.10

scale Total length 82km, 4 lanes

seoul-busan exPressWay..

Known for having the highest level of road construction capability, Kukdong E&C was in charge of paving an 82km stretch of the Seoul-busan Expressway, as well as bridges and other facilities required by the nation’s main transportation artery.

KuKdong e&c Played a leading role in building

Korea’s most imPortant transPortation artery.Intercity expressways are the life-support system of a nation,

bringing people, goods and materials where they need to be.

They are essential for economic development. With a total length

of 428km, the seoul-busan expressway has made Korea

into a single, integrated national economy, and is itself

a prized symbol of economic development.

The road To

ProsPerity

location Kuala lumpur, malaysia


scale Total floor Area 14,267.13 m2

88 stories above ground and 6 stories below.

We strive endlessly to go beyond our limits.We operate at the extremes of human potential.

Skyscrapers represent the most advanced state of modern construction

technology, and the Petronas twin towers in Kuala Lumpur are two of the world’s

grandest skyscrapers. Soaring to 446 meters, with 88 floors above ground

and 6 below, the Towers were once the world’s tallest buildings. Representative

of Malaysia’s rising economic importance, the Petronas Twin Towers are a

favorite destination of tourists, shoppers and businesspeople.

reaching for tomorroW

Petronas tWin toWers...

Comprising a total of 16 buildings, the Petro-nas Twin Towers complex is malaysia’s largest ever construction project. Owing to its previous experience with skyscraper projects, Kukdong E&C joined the project as a joint venture part-ner and successfully completed one of the world’s tallest buildings.

location daegu, Korea


scale Total Size 141,859.54 m2

3 stories above ground and 3 stories below

our architecture incorPorates culture into functionality.The arena is filled with the clamor of wild sports fans.

Soccer is a shared language, joining the world together in a common passion.

The curve of the roof of daegu World cup stadium is based on the shape

of traditional Korean homes. It expands the indoor space, making a comfortable

environment for players and fans. As a host city of the 2002 World Cup,

Daegu benefitted from a world-class stadium that is grand enough to house the passion

and dreams of the world’s greatest sports tournament.

a roof overThe world

daegu World cuP stadium..

At the time of its construction, the 65,857-seat daegu World Cup Stadium was the largest in Korea. The stadium optimizes the flow of people and traffic, and features a Teflon-coated roof that lets in natural light to create a more comfortable environment for watching the world’s most exciting game.

Location Seoul Gangseo Banghwa-Gyeonggi Goyang Gangmae


scaLe Total Length 2,643m (bridge 2,559m, civil works 75m), 7 lanes

Banghwa bridge-Total Length 2,559m, Maximum Span Length 180m, Width 27,8m (6 lanes)

Banghwa Bridge...

The first domestic civil engineering work of its kind, the bridge was made using the well wall foundation method. Its foundations rest 40m below the water in 20m of sediment. Above water, steel and iron pile constuction methods were used.

there's vaLue, and then there's VALUE.Every great architectual work must have aesthetic value.

The Incheon International Airport Expressway connects

to Seoul via the Banghwa Bridge, a center-arch truss bridge

with steel box girders at its junctures. Spanning 2,559 meters,

Banghwa Bridge is designed like an airplane taking off,

its red lights evoking the beauty of high-tech flight.

Among all 27 bridges crossing the Han River,

Banghwa is the most beautiful.

location Seoul, Korea


scale Total floor Area: 106,688.00m2

54 stories above ground and 2 stories below

We build landmarKs to admire forever.Humankind uses architecture to embody its hopes and dreams for the future.

the Korea World trade center, built as a focal point of the nation’s globalization drive,

is Seoul’s premier world-class office tower. Encased in a glimmering mirror

and aluminum exterior, the tower has an eastern wall that climbs skyward in a series

of gigantic steps. Housing everything required by international businesses,

the Center is a Seoul landmark.

The hub of groWth

Korea World trade center..

The construction of the Korea World Trade Center began even before the full building design was completed. using advanced methods, Kukdong E&C was able to complete the project in 40 months by working in stages to build parts of the tower while other sections were still being designed.

Joined Woongjin Group, acquired certification of New Technology

Rehabilitation of Cambodia’s Kampot-Trapang Ropaou Road

Received turnkey order for Jungang Railroad’s Carriage Base

Construction of Petronas Twin Towers, Malaysia

Construction of Seoul-Busan Expressway

Company established

1947

1953

1969

1970 1971

1981 1985 1989

1994 1995 1996 1997

2000 2001 2002 2003 2004 2007 2008

Name changed to Kukdong E&C

Received Stone Pagoda Industry Award for work on Seoul-Busan Expressway

Construction of Seoul City Subway Line No.1

Dhahran Medical Center, Saudi ArabiaConstruction of Albatin Military Hospital, Saudi Arabia

Construction of Office Complex of Korea Complex Trade Center

Construction of Jungang Expressway

Acquired ISO 9001 certification

Construction of Daegu World Cup Stadium

Acquired ISO 14001 certification

Expansion of train station buildings on Gyeongbu Railway

Received 10th Construction Award (Daegu World Cup Stadium)

Received Industry Award (Wide-Range Water Supply for Capital Region)

Received Industry Award from Cambodian Government; Construction of Residential Complex, Vietnam

The hisTory of KuKdong e&C is The hisTory of Korea’s eConomiC developmenT.

We are an integrated construction company with a reputation built on 60 years of successful opera-

tion. Since our establishment in 1947, Kukdong E&C has been a core member of Korea’s engineer-

ing and construction industry. We are one of the country’s Top 5 E&C firms, and were active in the

1970s as a high-tech leader during the country’s initial rise as a developed nation. We took an ac-

tive role in the international arena by building a lasting overseas network and participating in major

social infrastructure projects in countries such as Taiwan, Saudi Arabia, Indonesia and Malaysia.

Emerging successfully from the Asian currency crisis of 1997-98, Kukdong E&C has recaptured its

position as a major player in the construction industry. In 2007, we became an affiliate of Woongjin

Group, giving us the strength and stability to compete effectively in global markets, and look to the

future with renewed optimism.

12 | 13

KuKdong E&C is taKing on thE ChallEngE of CrEating

an EnlightEnEd industrial CulturE.

We are rising to meet the challenges of the globalization era.

Technology never reaches a pinnacle. Rather, it continually

grows and evolves as people apply their creativity and innovative ideas

to improve its power. As technology provides new capabilities,

companies must evolve and take advantage of the new opportunities

available to them. This is what Kukdong E&C has been doing

throughout its 60-year history, making change and innovation hallmarks

of our company culture. To prepare for future market needs,

Kukdong E&C is researching environmentally friendly-sound technologies

and engineering methods, and working to find ways to produce

clean and efficient energy.

a key industry

of the future

technologies

that protect

the environment

a new foundation

for industrial

development

the challenges

of the

globalization era

“

”

The hope for a brighT fuTure

begins wiTh careful preparaTion.

KuKdong e&c is reinforcing

iTs foundaTion in consTrucTion,

and preparing To TaKe The lead

and creaTe new value in fuTure

indusTries liKe energy,

indusTrial planTs and

environmenTal businesses.

EnErgy is a kEy industry of thE futurE.

Energy is what drives society; it is a core business that is poised for a new era of expansion.

As fossil fuels become more precious and their supply more uncertain, Kukdong E&C is

investing in efforts to expand into alternative energy businesses. Our sister companies in the

Woongjin Group are working together in close cooperation to develop leading photovoltaic

technologies. Woongjin Group possesses world-leading production systems for ingots, a core

raw material of solar batteries. Kukdong E&C is applying this expertise to its own research

efforts in solar power generation, which will one day help to reduce global warming and fulfill

the promise of a green and healthy future.

WE dEvElop tEchnologiEs that protEct thE EnvironmEnt.

Our survival is wholly dependent on the health of our natural environment. Even though people

in modern societies continuously seek to improve their standard of living, they have come

to realize that environmental protection is more important than anything else. The members

of the Woongjin Group have made a strategic choice to focus on environmentally-friendly

industries, and in particular, water and natural resources. Kukdong E&C is actively developing

plans for its own strategic shift toward environmental businesses. Our areas of focus include

desalination, deep subterranean water extraction and high-purity treatment facilities, as well

as water purification and treatment, water supply and recycling.

14 | 15

-Building the future with new recycled energy

-Preserving our environment

with sustainable technologies

“

”







indusTries liKe energy,

indusTrial planTs and

environmenTal businesses.

EnErgy is a kEy industry of thE futurE.

Energy is what drives society; it is a core business that is poised for a new era of expansion.

As fossil fuels become more precious and their supply more uncertain, Kukdong E&C is

investing in efforts to expand into alternative energy businesses. Our sister companies in the

Woongjin Group are working together in close cooperation to develop leading photovoltaic

technologies. Woongjin Group possesses world-leading production systems for ingots, a core

raw material of solar batteries. Kukdong E&C is applying this expertise to its own research

efforts in solar power generation, which will one day help to reduce global warming and fulfill

the promise of a green and healthy future.

WE dEvElop tEchnologiEs that protEct thE EnvironmEnt.

Our survival is wholly dependent on the health of our natural environment. Even though people

in modern societies continuously seek to improve their standard of living, they have come

to realize that environmental protection is more important than anything else. The members

of the Woongjin Group have made a strategic choice to focus on environmentally-friendly

industries, and in particular, water and natural resources. Kukdong E&C is actively developing

plans for its own strategic shift toward environmental businesses. Our areas of focus include

desalination, deep subterranean water extraction and high-purity treatment facilities, as well

as water purification and treatment, water supply and recycling.

14 | 15

-Committed to a green and healthy future

-Managing water resources; the origin of life

We are laying a neW foundation for industrial development.

Industrial plants are a valuable and necessary component of modern social

infrastructure. They are core economic elements and they provide much of the richness

of modern life. Kukdong E&C is meeting the demands of modern industry

by acquiring the technologies to produce safe and efficient industrial plants with

reduced time and costs.

KuKdong e&C is building on a fine tradition of quality.

We cultivate a future-oriented corporate culture that thrives on challenge.

Kukdong E&C creates value by focusing on its core strengths. Our near-term plan

is to achieve annual growth of 30% in our core areas of residential and civil

construction, and to reinforce our premium business lines in town houses and

new brand apartments.

We are opening the door to a larger World.

In the open global markets of today, companies face both heated competition and

limitless opportunity. In a global market where people from all countries mingle and trade

with one another, Kukdong E&C has developed the competitive skills, technology and core

capabilities to promise a top-quality outcome on any international project.







indusTries liKe energy, indusTrial

planTs and environmenTal

businesses.

“

”

-Safe and efficient industrial plants

-Setting a good example for the next generation

We are laying a neW foundation for industrial development.

Industrial plants are a valuable and necessary component of modern social

infrastructure. They are core economic elements and they provide much of the richness

of modern life. Kukdong E&C is meeting the demands of modern industry

by acquiring the technologies to produce safe and efficient industrial plants with

reduced time and costs.

KuKdong e&C is building on a fine tradition of quality.

We cultivate a future-oriented corporate culture that thrives on challenge.

Kukdong E&C creates value by focusing on its core strengths. Our near-term plan

is to achieve annual growth of 30% in our core areas of residential and civil

construction, and to reinforce our premium business lines in town houses and

new brand apartments.

We are opening the door to a larger World.

In the open global markets of today, companies face both heated competition and

limitless opportunity. In a global market where people from all countries mingle and trade

with one another, Kukdong E&C has developed the competitive skills, technology and core

capabilities to promise a top-quality outcome on any international project.







indusTries liKe energy, indusTrial

planTs and environmenTal

businesses.

“

”

-Strengthened competitiveness for a brighter future

-Specialists in creating affluent lifestyles

16 | 17

a new era is oPening to reveaL endLess oPPortunities.

Construction has played an important role throughout human history. Civil engineering is nothing less than the management

of nature itself, and societies have been transformed by it. Plants and factories are the centers of mass production and the

symbols of industrialization’s progress. A new era in construction is opening up, as people look beyond the earth and target the

heavens for their explorations.

Kukdong E&C has been at the center of Korea’s construction industry throughout this nation’s period of rapid industrialization

and economic growth. Our company has served the country’s development needs since 1947, completing projects in the areas

of civil engineering, architecture, housing, industrial plants, telecommunications and electricity. Our overseas works have raised

the profile of Korean industry abroad. These achievements have been possible because of our company’s confidence, drive and

dedication to quality.

Kukdong E&C is now embarking on a new era. We joined the Woongjin Group, and are adopting transformative management

strategies and ideas. We are being reborn as a young company in a new century. Going forward, our continuing success will be

underpinned by the dual strengths of our accumulated experience in the construction business, and the creative energy of the

Woongjin Group.

Our corporate philosophy is based upon caring for our work, for society, for our customers and our coworkers. We put envi-

ronmental best practices into action, focusing on creating a prosperous future for society instead of concerning ourselves with

short-term competitions. Our forward-thinking management is guided by three key policies.

First, maximize corporate value. Kukdong E&C is fostering a corporate culture that focuses on working together to create

value. Our unique strengths developed over our 60-year history are being reinvigorated by the dynamic, future-oriented spirit of

Woongjin Group, inspiring all of us to meet every challenge with confidence.

Second, implement transparent management. Kukdong E&C will be a respected blue chip company that earns the trust of our

customers and society. We will practice sustainable management and share information with our customers on the basis of

ethical corporate conduct, and establish a win-win relationship between labor and management.

Third, develop and nurture top-quality human resources. Our most important asset is our human capital. Kukdong E&C will

safeguard its future by recruiting and training an elite workforce that will be the company’s key competitive advantage.

I have set an objective of 30% annual growth until 2010 for Kukdong E&C. I believe this is achievable, given our company’s dem-

onstrated record of creativity, innovation and dominating spirit. To make Kukdong E&C a world-class brand in the construction

industry, we are reinforcing our civil engineering business and directing more resources toward water treatment and renew-

able energy as next-generation growth engines. Focusing on Central and Southeast Asia as future strongholds, we will expand

our overseas construction business and establish branches in foreign countries. In cooperation with affiliated companies in the

Woongjin Group, we are entering the era of globalization with new business opportunities for new markets, and implementing

management tools to improve our communications and workflow.

The future will take shape based on the dreams we form today. We dream of a world that provides a beautiful home for people

everywhere; a world where people live in comfort and prosperity. Kukdong E&C is fully committed to bringing joy to its custom-

ers, and earning their respect as a builder of historic landmarks.

18 | 19

CEO Yoon, choun-ho

the innovation in engineering methods and technology

the innovation in engineering methods and technology

Research and development is the main source of competitive advantage for cutting-edge companies that achieve growth through new

value creation. Kukdong E&C has an active R&D wing that is focused on finding new technologies and methods to solve real-world

problems efficiently and effectively. Each new innovation combines with existing knowledge to make engineering projects proceed

faster, safer and cheaper, and to improve the overall finished quality of construction works.

Dogok Combined Complex Construction Period 2004.9-2007.3Scale Total Area 34,046.58m2

1 complex, 96 households 7 stories below ground 20 stories above ground

Songpa Sincheondong Multi-Complex BuildingConstruction Period 2005.4 - 2007.5Scale Total Area 50,309.28m2

5 stories below ground 10 stories above ground

Busan Myeongji Kukdong ApartmentConstruction Period 2006.2 - 2008.11Scale Total Area 187,292.33m2

21 complexes, 1,124 households 1 story below ground 15 stories above ground

Garakdong Combined ComplexConstruction Period 2005.7 - 2007.10Scale Total Area 16,403.39m2 1 complex 7 stories below ground 19 stories above ground

EConoMiCAl ConCrEtE hArDEninG MEthoD, PF/r EnGinEErinG MEthoD

Kukdong technology hardens concrete quickly and economically.The PF/R(Prefab Fom / Rebar) engineering method is a form-work and non-support type method for quickly and easily hardening concrete. Iron reinforcement rods and forms, which are used in slab and wall structures, are prefabricated with a bolted iron truss, and the prefab is then delivered to the worksite. The concrete is hardened without requiring additional structures to be built. This makes it possible to actually use factory automation as a construction tool, and thereby develop new types of structures, optimize resources and more easily correct dislocations.Unlike previous methods in which construction work was performed entirely at the worksite, form fabrication and rein-forcement rod processing steps can be completed at a facto-ry, so that only the prefab structure needs to be built on-site. Construction quality control is thereby improved and the pace of work at the site can be quickened. The PF/R method is also markedly safer and cheaper, due to the standardization that factory production allows.

Applications

Kukdong E&C has been using the

PF/R engineering method to complete

slabs for commercial and residential

projects in Seoul and Busan, achieving

significant reductions in construction

time and cost. Developed by Kukdong

E&C, PR/R has gained industry-wide

recognition as a superior engineering

method, and is being applied to an

ever-growing number of job sites.

100%

Cost Savings vs. Former Method

High Form Tech

73.8%

PF/R Slab

Existing tech(slab): Construction period comparison

High Form Tech

PF/R Slab2.7 days

6 days

3.3 dayssaved

26% savings

Process Flowchart

Plant fabrication -Lattice cutting and bending

- Slab fabrication

On-site fabrication - Adding weights

- Construction of non-column slab molding cast

22 | 23

connect point

connect point

connect point

connect point

connect point

connect point

lattice

ADvAnCED tunnEl ConStruCtion tEChniquE, ShiElD tBM

Safe and environmentally-friendly tunnel boring method.The Shield TBM(Tunnel Boring Machine) engineering method enables the safe and efficient construction of tunnels. Using a cylindrical shield to protect the tunneling machine from cave-ins, the tunnel interior is stabilized and worker safety enhanced. The cutter head of the TBM digs out the tunnel while complementary methods, such as injection of compressed air and compressed liquid, act to prevent tunnel collapse. Except for perpendicular sections, most of the work is performed underground, thereby giving workers less exposure to potentially damaging noise and vibration.The method has been applied to urban infrastructure works such as subways and the laying of electrical and telecommunications lines. It is especially effective in soft, clayey ground. The Shield TBM technique helps minimize noise, tremors and traffic inter-ruptions in crowded urban areas, compared with excavation methods. In the case of underwater tunnels, the technique pro-vides a clearly preferable work environment.

Applications

To build the Dongjak Telecom Station,

a riverbed telecom facility located

beneath Seoul’s Han River, Kukdong

E&C used the EPB (Earth Pressure

Balance) Shield TBM method, suc-

cessfully completing construction of

the tunnel. An 8 meter-long cylindri-

cal iron shield was used, with aqua-

dilating waterstops helping to prevent

water infiltration. The same method is

now being applied to the construction

of the next such station in the Seoul

area.

total Process Graphic

riverbed telecom SubstationConstruction Period 2002.1-2005.4Scale SHIELD TBM TUNNEL(D:2,200) Single perpendicular extension L=1,914.9m MICRO SHIELD TUNNEL(D:2,000) Single perpendicular extension L=290.835m

Excavation Process

SHIELD construction steps(soil)

Drillingpreparation

Drilling

Segmentfabrication

Drillingpreparation

Drillingpreparation

Drilling

Reset

Segmentfabrication

TBM construction steps(rock)

24 | 25

Gyeongbu high-speed railway Construction Site

Construction Period 2005.4-2008.12Scale Total Length 5.7km, Bridge 1,595m, Tunnel 1,885m

WorlD’S FirSt tGv rAil BriDGE, PSC Box GirDEr BriDGE + ConCrEtE ArCh BriDGE

quick and efficient construction of tGv rail bridge.High-speed TGV trains routinely travel at speeds over 300 km/h, and they therefore have special track and bridge requirements. Kukdong E&C is the first company in the world to apply a PSC Box Girder + Concrete Arch design to a TGV rail bridge, which can be efficiently applied to a seamless branching-off system. This new bridge engineering system was especially designed for high-speed rail applications, and provides particular safety, stability and ease of maintenance, while also being quick and economical to implement.

Applications

Kukdong E&C strives to comply fully

with change-orders that arise in the

course of construction projects. As

construction plans at the Junggwae

Overpass of the Gyeongbu High-speed

Railway were revised, we proposed

the world’s first PSC Box Girder +

Concrete Arch Bridge for TGV Rail.

The 532 meter span was successfully

completed and trains have logged

years of successful operation, showing

that Kukdong E&C has the profes-

sional competence to respond flexibly

to changing conditions.

Small Arch Structure

-Multi-leg upper structure is realized

-Multiple small arches reinforce bridge’s horizontal strength

→ Horizontal resistance to deformation by train weight is improved

Fixed Arch Structure

-Upper slab weight is transferred to lower arch, preventing overall deformation

-Continuous filling of fixed arches in lower section reduces horizontal deformation

and arch pressure(offsets horizontal moment)

Weight of upper deck transferred downward through small arches and columns(wall)

Process Flowchart

Structured System

Interval Extension upper wall

Bridge base and main body

Section main arch and wall

Bridge Wall

Upper wall

Upper PSC BOX

Hardening

26 | 27

Bucheon Gym/Cultural Facility

Construction Period 2005.3-2006.12Scale Total Area 90,644.8m2

3 stories below ground 4 stories above ground

ulsan Sincheon Kukdong Apartment

Construction Period 2004.11-2007.5Scale 11 complexes, 960 households 2 stories below ground 23 stories above ground

Busan Singoejeong

Kukdong Apartment

Construction Period 2005.3-2007.4Scale 8 complexes, 470 households 2 stories below ground 25 stories above ground

Cheonan Agriculutral runoff Processing Center

Construction Period 2008.3-2009.10Scale Capacity 120 tons/day(Purification process 90 tons/day, Recycling process 30 tons/day)Total Area 1,802m2, 1 story below ground, 2 stories above ground

Ext-PilE EnGinEErinG MEthoD ProDuCES hiGh quAlity FounDAtionS

latest technique integrates the foundation with the building.The EXT-Pile method adds strength to PHC piles by attaching a steel reinforcing plate to act as a cornerstone. This increas-es the butt area of the pile, and its supporting power is there-fore improved over existing PHC piles, creating a more stable foundation for buildings. With this new method, expansion plates are easily added on-the-spot to the pile butt, with con-struction proceeding smoothly through the foundation stage.Compared with previous methods, EXT-Pile incurs significant savings on materials: 15% less rebar and concrete is needed and fewer piles are required to build a foundation of the same strength. It is also an environmentally-friendly construction method that shortens the construction period by up to 30% and reduces the need for subsequent reinforcement works.

Applications

Having developed the EXT-Pile method

for foundation construction, Kukdong

E&C has actively applied this time-

saving technique to its work on the

Bucheon Gym Cultural Center, Ulsan

Sincheon Apartments, and other sites.

Thanks to the method’s time and cost

savings, as well as noise reduction,

other companies have applied it to

their own works at Gaebong I-Park

and Doosan We’ve apartments.

Pile construction cost Base construction cost

23.5% savings

74.2%

100%

Existing Pile Ext cost comparison

83.5%

100%

General PHC PileEXT-PHC Pile

19 dayssaved

Existing pile Ext pile construction period comparison

General PHC Pile73 days

EXT-PHC Pile54 days

Process Flowchart

Supportingiron works

Iron works

completion

Ext-Pilefabrication

Pile

placement

Pile

insertion

Subsistence

checking

ground

External weight

ground

Based on total construction cost

28 | 29

B U S I N E S S O v e r v i e w

The power of consTanT innovaTion is The source of KuKdong e&c’s compeTiTiveness

Kukdong E&C is an expert in all fields of construction. Our civil engineering works have aided re-

gional development, our architectural projects have renewed cityscapes with modern designs, and

our residential housing developments have provided comfortable homes for tens of thousands of

families. We build plants to serve local industry and various facilities for the electronics, telecom-

munications and environmental sectors. For over 60 years Kukdong E&C has been developing as a

competitive and innovative full-service construction company that faces each new challenge with

excitement and an endless drive to be the best.

30 | 31

CIVIL wOrks

BUILDING wOrks

PLANT wOrks

civiL WORKS

Business area

MaJor PerforMance

Gyeongbu High-speed Railway(Lot.13-2), Korea

West Seaside Expressway(Lot.7), Korea

Busan Myeongji Residential Complex Development(Lot.2), Korea

Honam Expressway 4 Lanes Extension, Korea

Seoul Metropolitan Water Supply Line Facilities(Phase 1~5), Korea

Seoul Subway Line No. 1~5, Korea

Seoul-Busan Expressway, Korea

Asan Bay Sea Wall & Drainage Sluice, Korea

Ulsan Industrial Water Supply Line Facilities(Phase 1-2), Korea

Breakwater Faciliities at Pohang New Port, Korea

2005.04 - 2008.12

1993.12 - 1996.12

1993.08 - 2000.12

1983.04 - 1985.08

1973.05 - 1998.04

1971.04 - 1997.02

1971.03 - 1978.10

1971.03 - 1973.06

1970.01 - 1994.11

1968.07 - 1973.12

working with nature to iMProve huMan Life

Civil engineering is humankind’s most ancient

community pursuit. Its creations form the basis

of human civilization, and Kukdong E&C has been

a part of that proud legacy for over 60 years.

Working with the latest technologies to ensure

optimal and safe construction operations,

Kukdong E&C is creating spaces where people

and nature can coexist and benefit each other.

-Roads, Expressways

-Bridges

-Railroads, Subways

-Water Supply and Sewage

-Ports, Seawalls, Dams

-Site Preparation

-Golf Courses, Air Fields, Telecom & Power Supply Nodes

32 | 33

BANGHWA BRIDGE

Kukdong E&C has played a leading role in Korea’s economic

development through our participation in numerous social in-

frastructure projects, including expressways, roads, railways,

subways, water and sewer facilities, Ports, seawalls and dams,

industrial complexes and housing complexes. Kukdong E&C also

has abundant experience with airfields, telecommunications

nodes and power supply installations, and leisure facilities such

as golf courses. With our rich experience in the management

and execution of complex construction projects, Kukdong E&C is

raising the competitiveness of the national industry and improv-

ing people’s quality of life.

Raising ourselves to meet global standards in all our activities,

Kukdong E&C is known worldwide as a top-quality construction

firm. Based on our long history and extensive experience, we

have been able to extend our operations to Saudi Arabia, Dubai

and the UAE, and to Indonesia, Malaysia and Vietnam. Our strong

reputation for technical competence, efficient operation and

quality construction results will continue to drive the global ex-

pansion of Kukdong E&C.

02

03

04

05

01

Roads, Expressways | we create valuable social infrastructure.

A nation’s roads and expressways are the lifeblood of its econo-

my. Kukdong E&C has a long and proud history of work on many

important road projects that connect city to city and people to

people. In addition to the Seoul-Busan Expressway, Korea’s main

transnational artery, we have aided the development of industries

and regions through our contributions to the Honam Expressway

and the Central Expressway. Our high-quality work on these pri-

mary national roads led to our acceptance as contractors on simi-

lar projects in Saudi Arabia, Indonesia, Vietnam and Cambodia.

Bridges | applying the most advanced construction technologies.

Bridges are demanding structures to build; they require a high de-

gree of design and construction capability. Kukdong E&C built the

Banghwa Bridge component of the Incheon International Airport

Expressway, a major civil infrastructure project. Also, applying

the slip-form method for the first time in Korea, we completed the

Wongju Bridge on the Central Expressway.

Railroads, Subways | we aim for perfect execution of every con-

struction work.

Safe, fast and efficient railroads are an essential component of

any integrated transportation and logistics network. They pro-

mote the development of cities, countrysides and industries.

Kukdong E&C participated in the building of Korea’s Chungbuk

Railroad and Gyeongbu High-speed Railway. In the urban pas-

senger rail area, we have worked on Seoul’s Line 1 and Line 5

subway lines, the Gwacheon Line, and on Daegu City’s Line 1 and

Line 2 subways.

01 Ganghwa Sangha District Cultivation Land, Korea

02 Seoul Subway Line No.5(Lot.5-22), Korea

03 Ulsan Industrial Water Supply Line Facilities(Phase 1-2), Korea

04 Expansion of Honam Highway 4 lanes Extension, Korea

05 Seoul Metropolitan Water Supply Line Facilities(Phase 1~5), Korea

06 P-J Road, Indonesia

07 Gyeongbu High-speed Railway(Lot.13-2), Korea

08 Commercial Port of Jubail, Saudi Arabia

09 Breakwater Facilities at Pohang New Port, Korea

06

07

08

09

34 | 35

11 Wastewater Treatment

01

02

04

05

03 06

Water Supply and Sewage | we help municipalities use their water resources more efficiently.

Water is essential for everything people do. It is not just a nutrient for our bodies - it is also a neces-

sary resource for our industries. Kukdong E&C has completed many water supply and sewage facili-

ties to ensure the delivery of safe, clean water to homes and factories. Examples of our work include

the Ulsan Aqueduct Project on the Nakdong River, the Gwangam Purification Plant at Paldang Res-

ervoir, which is the largest in East Asia, and the Seoul Water Supply Project Phases 1 to 5. Through

these and other activities we have gained broad experience in intake, storage, purification, drainage

and supply of water, as well as specialized construction of large, special-purpose facilities.

Ports, Seawalls, Dams | we harness the power of nature.

Kukdong E&C is the best construction partner for specialized jobs like dams, seawalls and ports, all

of which require advanced design and technical capabilities. We constructed Korea’s first and larg-

est port, Busan Port, as well as Ulsan Port and the East Coast’s largest trading port, Mukho Port. In

the construction of the Asan Bay and Namyang Bay seawalls, we applied both Mattress and Gabion

engineering methods, overcoming extremely challenging conditions to complete infrastructures that

greatly improved the local economies. Kukdong E&C continues to acquire new and effective tech-

nologies that help us to overcome Nature’s most significant obstacles.

10

Wastewater Treatment

08

09 12

07

11

36 | 37

Site Preparation | Building a foundation for growth.

Comfortable and attractive housing is the foundation of a city’s growth and vitality. Understanding

the importance of high-quality housing, Kukdong E&C has finished many urban residential develop-

ments, including Busan City’s Myeongji Land Development Project, Seongnam City’s Bundang Dis-

trict Housing Development Project and Siheung City’s Yeonseong District Land Development Project.

We have also promoted agricultural modernization with our work on the 20-year Gangwha District

Agricultural Project and the Farmland Upgrading Project, which focuses on effective water manage-

ment during drought and flood conditions.

Golf Courses, Air Fields, Telecom & Power Supply Nodes | we are enhancing people’s quality of life.

Social infrastructure makes life more comfortable, convenient and productive, boosting economic

activity and spreading the benefits of regional development. Based on its advanced design and engi-

neering capabilities, and the skills of its talented professionals in high-tech fields, Kukdong E&C has

built the Jincheon and Ulsan Golf Courses, the Osan and Gunsan Airfields and other military construc-

tions, and telecommunications nodes and power supply facilities to improve levels of public service.

01 Jungbu Expressway, Korea 02 Breakwater at Mukho Port, Korea 03 Lane expansion on Jungang Expressway, Korea

04 Namji-Yeongsan National Road 4 Lanes Extension, Korea 05 Busan Myeongji Residential Complex Development, Korea

06 Jincheon Golf Course, Korea 07 Osan Airfield, Korea 08 Daegu Subway Line 2, Korea

09 Jakarta High-level Road No.1, No.3, Indonesia 10 Container Crane at Busan Port, Korea

11 Pier Facility at Busan New Port, Korea 12 Asan Bay Seawall and Water Distribution Facilities, Korea

BuiLding wOrks

Business area

maJor performance

-Office Buildings, Commercial Facilities

-Schools, Hospitals & Public Facilities

-Apartments, Officetels, Combined Complexes

-Town Houses, Villas

Yongin Jukjeon Villa(Phase 1), Korea

Busan Myeongji Kukdong Apartment, Korea

Woongjin Think Big Paju Office Building, Korea

Bucheon Gym/Cultural Facilities, Korea

Daegu World Cup Stadium, Korea

Petronas Twin Towers, Kuala Lumpur, Malaysia

Korea World Trade Center Office Building, Korea

Medical Center, Dhahran, Saudi Arabia

Ministry of Foreign Affairs Staff Housing, Saudi Arabia

Kukdong Building, Korea

2006.09 - 2007.10

2006.02 - 2008.11

2005.04 - 2007.02

2005.03 - 2006.12

1996.12 - 1999.06

1994.03 - 1997.05

1985.05 - 1989.03

1981.01 - 1985.10

1980.05 - 1984.10

1977.02 - 1978. 07

KuKdong e&c’s creaTive designs are defining

a new archiTecTuraL paradigm.

Modern urban citizens demand an architectural environment

that satisfies their need for convenient and safe living,

while also providing high-tech solutions and creative touches

that make each structure unique. Kukdong E&C has a long

history of innovation in the areas of skyscraper

and housing block construction. With each generation,

we have made leaps in terms of environmental conservation,

beauty, function and comfort.

38 | 39

Malaysia Kuala Lumpur Petronas Twin Towers

People fundamentally need to live in close proximity with one an-

other, as members of a human community. Modern cities need to

address our human needs by achieving a balance of beauty and

function. Towering skyscrapers, intelligent buildings and high-

value-added buildings are just some of the modern areas where

Kukdong E&C has built lasting landmarks. We are active partners

with governments to create planned cities, including participating in

civic investment projects and BTL (build-transfer-lease) projects.

Kukdong E&C is shaping the future in Vietnam, participating in

mega-scale New Town developments in Hanoi, and residential proj-

ects and an international school in Binh Duong Province. Beginning

with our first ‘Kukdong Apartment’ complex in Seoul in 1975, Kuk-

dong E&C has gone on to build more than 50,000 apartments at 130

locations. We are leading the advancement of urban culture with

living spaces that meet the demands of new lifestyle trends.

Kukdong E&C serves its clients by building apartments, officetels,

combined residential and commercial complexes and townhouses

that satisfy modern architectural and cultural ideals.

01

02

03

04

05

Office Buildings, Commercial Facilities

| we are working to create a new city.

Various types of buildings and structures are required to serve the

needs of large cities. Kukdong E&C understands the needs of city

planners and residents, and brings a fresh perspective to the build-

ing of modern, high-tech urban landmarks that are representative

of each city’s character. Fully competent with office and commercial

structures, such as the Korea World Trade Center and the Petronas

Twin Towers, we have demonstrated the highest level of technol-

ogy and engineering capability. As skyscrapers reach higher and

construction conditions become more difficult, highly advanced

engineering methods and project management skills are needed, as

well as sophisticated safety systems. Kukdong E&C thrives on these

challenges, and consistently completes complex projects quickly,

economically and to the highest quality standards. We meet our cli-

ents’ demand for architectural designs that will withstand the pas-

sage of time, building structures that merge function and beauty to

create truly inspiring human environments.

Schools, Hospitals & Public Facilities | we think of people first.

Kukdong E&C knows that the most important feature of architecture

is the people who use and experience it. When we build public facili-

ties, such as schools, hospitals and community centers, we focus

on how these facilities can best serve the needs of local citizens. We

have constructed many landmark buildings that are appreciated and

loved by the people around them: Daegu World Cup Stadium won in-

ternational recognition for its beautiful design and high functionality;

Dankook University’s Nanpa Memorial Music Hall, Toegye Memo-

rial Central Library and University Hospital were built with modern

amenities such as central vacuum systems and building automation

systems. We also built the Busan Station terminus of the Gyeongbu

High-speed Railway.

01 Bucheon Gym/Cultural Facility, Korea

02 Korea World Trade Center Office Building, Korea

03 Fraser Suites Serviced Residence, Korea

04 Central Bank of Saudi Arabia, Saudi Arabia

05 Daegu World Cup Stadium, Korea

06 Kukdong Building, Korea

07 Dankook University Medical School Hospital, Korea

08 Woongjin Think Big Paju Office Building, Korea

09 King Khalid Military Hospital, Saudi Arabia

06

08

07

09

40 | 41

Apartments | we build to give comfort and convenience.

People’s lives are profoundly influenced by the shape of the spaces in which they live. Kukdong E&C

strives for artisanship in the creation of carefully-designed, human-centered environments. Our goal is

to be the leader in creating advanced housing with customized designs that balance homeowners’ con-

venience with environmental consciousness. We have built many environmentally-friendly apartment

complexes, all of which feature uniquely luxurious interiors and convenience-enhancing features.

Combined Complexes, Officetels | graceful cultural & commercial environments.

Kukdong E&C combined-purpose facilities improve neighborhoods and lifestyles. By balancing living

space, recreational space, cultural space and commercial facilities in the right proportions, Kukdong

E&C gives development a good reputation again.


01

02

03

04

05

Town Houses , Villas | we help people live beautiful lives.

People’s aspirations naturally rise higher as their society grows and develops. Through years of eco-

nomic growth, Kukdong E&C has built steadily more luxurious town houses and condominiums for pre-

mium customers, bringing new inspiration to a market saturated by repetitive offerings. We introduced

the Kukdong STARCLASS housing complex to Yongin City, launching a new form of high-end community

based around classical housing models. We have also developed housing facilities targeted at older de-

mographics, known locally as ‘silver towns’.

01 Dogokdong Combined Complex, Korea 02 Busan Station, Gyeongbu Railway, Korea

03 Kwangjang Kukdong Apartment, Korea 04 Yongin Jukjeon Villa(Phase 1), Korea

05 Hyeonjeo Kukdong Apartment, Korea 06 Ocean Tower at Haeundae, Korea

07 Seoul National University R&D Center, Korea 08 Ministry of Foreign Affairs Staff Housing, Saudi Arabia

09 Busan Myeongji Kukdong Apartment, Korea 10 Sadang Redevelopment Apartment(Lot.4-1), Korea

07


Wastewater Treatment

07

08 10

06

09

42 | 43

pLanT wOrks

& New busiNess

Business area

maJor performance

2007.01 - 2008.08

1995.11 - 1998.07

1995.01 - 1997.08

1993.08 - 1995.08

1985.02 - 1989.10

1984.08 - 1988.06

1983.07 - 1984.09

1983.01 - 1984.12

1969.08 - 1975.08

Woongjin Energy Daedeok Factory, Korea

Cheolwon Province Livestock Waste Water Disposal Plant Facilities, Korea

Samcheonpo-New Gimhae 345kv Transmission Line, Korea

Busan Dadaepo Incinerator, Korea

Sanitary Waste Water Treatment Plant, Jubail, Saudi Arabia

Water & Sewage Treatment Plant

for King Fahd International Airport, Dhahran, Saudi Arabia

Daewoong Lily Pharmaceutical Factory, Korea

Housing Area "D" Electrical System, Riyadh ,Saudi Arabia

POSCO Steel Mill Plant, Korea

-Chemical Engineering Plants

-Environmental Plants

-Renewable Energy

-Electricity & Telecommunications

we provide The driving force

for The deveLopmenT of indusTry.

By enabling mass production, the industrial revolution ushered

in an era of affluence undreamed of by previous generations.

However, it also led to environmental contamination on a scale

never before seen. When Kukdong E&C builds industrial production

facilities and environmental plants, we strive to create balanced

constructions that respect and protect the environment.

Kukdong E&C is aggressively expanding into new business fields,

including production of materials for photovoltaic cells,

a next-generation renewable energy technology.

44 | 4544 | 45

POSCO Steel Mill Plant

There is a renaissance in overseas construction going on. Oil

wealth in the Middle East is funding massive investment in infra-

structure facilities such as petrochemical plants, oil refineries

and gas plants. Countries in Africa, Asia and Latin America are

again turning their attention toward exploration and exploitation

of their natural resources. Equipped with a strong organization

and decades of experience, Kukdong E&C will become a com-

plex construction company with a full range of competencies in

manufacturing, purchase, supply, construction and testing of

industrial plants.

As an affiliate of Woongjin Group, which is collectively orienting it-

self toward high-tech environmental businesses, Kukdong E&C is

pursuing an active R&D program to establish a firm foothold in new

business fields. In 2006 Woongjin Energy established a mass pro-

duction system for 200 cm ingots, a world-record length. Starting in

2010, Woongjin Silicon will begin mass production of polysilicon, a

basic material of photovoltaic cells. The synergies created through

the cooperation of Woongjin Group affiliates in this field will create

more than US$ 1 billion in value by 2011.

01 Sanitary Waste Water Treatment Plant, Jubail, Saudi Arabia

02 Youngnam Chemical Plant, Korea

03 Housing Area "D" Electrical System, Riyadh, Saudi Arabia

04 Busan Dadaepo Incinerator, Korea

05 Samcheonpo-New Gimhae 345KV Transmission Line, Korea

06 Woongjin Energy, Daedeok Factory, Korea

07 Jinro Factory, Korea

08 Daewoong Lily Pharmaceutical Factory, Korea

09 Water & Sewage Treatment Plant for King Fahd International Airport, Dhahran, Saudi Arabia

02

03

04

01

05

Chemical Engineering Plants | we unite professional construction ability

with high-level production technology.

Economic development is proceeding worldwide, driving demand for

plant infrastructure in various industries. Following the development

boom in the Middle East and Asia, BRIC countries are discovering the

need for massive numbers of industrial plants to support their continued

growth. The professionals at Kukdong E&C are experienced with plant

design, quality control and construction. The company has built chemical

engineering plants handling high-tech materials, such as the polysilicon

factory of Woongjin Polysilicon.

Environmental Plants | creating facilities that keep the environment

clean and safe.

Building on its experience in waste treatment facilities such as water

purification plants, sewage treatment plants and agricultural runoff

treatment plants, Kukdong E&C is breaking new ground as a member

of Woongjin Group. We will build on the synergies with our fellow Group

members, such as Woongjin Chemical, the world’s fourth largest filter

producer, and Woongjin Coway, a major exporter of filter-based water

purification systems. Partnered with such capable allies, Kukdong E&C

will build a competitive edge in plant-scale water treatment facilities, in-

cluding desalination plants. We will push forward with our plans to enter

into desalination, deep subterranean water extraction, high-purity water,

water recycling, water supply and others.

Renewable Energy | we are exploring the future of energy.

In this era of record oil prices, customers are searching for alternative

and renewable energy sources to replace fossil fuels. Kukdong E&C

has targeted this promising area as a key driver of the company’s future

growth, and we are developing business models in fields such as solar

power generation and biodiesel. Together with our sister companies in

the Woongjin Group, we are focusing on photovoltaic cells and their ap-

plication to the power generation business. Woongjin members already

possess world-leading technology for the production of ingots and poly-

silicon, respectively the core component and core raw materials of photo

cells. By practicing ‘Selection & Concentration’ of our efforts, Kukdong

E&C will emerge as a leader in environmental plants, power plants and

high-tech energy production.

Electricity & Telecommunications | applying advanced technologies to

interconnect the world.

Kukdong E&C’s projects in the areas of electricity and telecommunica-

tions have taken as a central focus the need to secure safe and efficient

transmission. We are an industry specialist in power transmission sys-

tems for subway lines, as well as in tower construction, and are active

participants in consortiums for many infrastructure projects. Our com-

pleted building electrification projects include the Korea World Trade

Center,Bucheon Water Purification Plant , Daegu Water Purification

Plant, and Mokpo Electric Train power cable.

06

07

09

08

46 | 47

Thinking tomorrow raTher Than Today

Thinking tomorrow raTher Than Today

The sort of culture a company develops is shaped by the objectives the company pursues, and by the values it finds important. We be-

lieve that corporate culture is not trivial; rather, it profoundly affects the quality of products and a company’s identity. Kukdong E&C

makes every effort to create a healthy and transparent corporate culture, where corporate social responsibility is taken seriously, and

success is defined as growing together with our customers, partners and employees. In this way, we work every day to earn the trust

of society and our customers.

G r E E N M a n a g e M e n T

VALUE to EArtH

VALUE to ECosystEm

VALUE to CUstomEr

VALUE to soCIEty

G r E E N M a n a g e M e n T

we use environmentally-friendly construction practices to ensure a healthy future.

Kukdong E&C is an active participant in Woongjin Group’s Vision and Shared

Values, which include Environmental Management as a core corporate mission.

We are committed to continual improvement of our work systems and increas-

ing investment in environmental protection.

Customer satisfaction

Compliance with international agreements

Contribute to environmental conservation

in international society

Practice respect for the environment

Shared Value of Environmental

Management

VALUE to EArtH

VALUE to CUstomEr

VALUE to ECosystEm

VALUE to soCIEty

50 | 51

VALUE to EArtH

VALUE to CUstomEr

VALUE to ECosystEm

VALUE to soCIEty

Putting 3R into practice

(Reduce, Reuse, Recycle)

Kukdong E&C acquired ISO 14001 Environmental Management Certifica-

tion in 1997 and operates an in-house EM Committee. The Committee

organizes various activities, such as waste cartridge collection, stop-

smoking campaigns, green purchasing initiatives and environmental

education activities.

Supportive mindset

Green purchasing

Contribute to environmental conservation

in international society

Development of environment-friendly products

Global company through new-green

management

50 | 51

love for organization

love for customer

love for challenge

love for society

H U m A N r e s o u r c e s

Love for challenge means challenging yourself

to make a better future. It is to continously

think of 'how to improve', and make the necessary

enhancements.

We are able to maintain our business and

reward our employees, all thanks to our customers.

Love for the customer is to think of

and care for the customer.

Love for society starts

from thinking 'ours' rather than 'mine'.

You love society by sharing what you

have with those who have less.

Love for organization is to love and accept those

with whom you are working. You love the organization

by giving positive input and praise to your team.

Be the one to open your mind first.

Nurturing human talent and a healthy organizational culture.

High-quality human capital is the core of corporate competitiveness. Excellent

companies are supported by excellent workers who thrive in a culture that sup-

ports and inspires them. Kukdong E&C believes in the ambition, motivation,

creativity and intelligence of its workers.

love for work

love for change

52 | 53

Our philosophy is that love of work, challenge, customers and society will

naturally lead to excellent performance. We choose new recruits care-

fully and invest heavily in their training, so that our workers enjoy per-

sonal development along with the company’s growth.

Kukdong E&C people are....

LEArNING ProfEssIoNALs We foster specialists who produce

results based on a lifelong love of learning.

worKING As A tEAm Kukdong E&C’s employees treat

each other as family, offering constant support and

encouragement to one another.

INsPIrING PAssIoN for PErformANCE We train and support

positive-minded employees who overcome difficulties and realize

their career goals.

INNoVAtIVE, CrEAtIVE EmPLoyEEs We nurture a creative

workforce composed of people who pursue growth and

development by seeking out new learning experiences.

Your willingess to work with joy

makes a huge difference

in your performance capabilities.

Working pleasantly helps you take pride in and

get satisfaction from the work that you do.Without change, one cannot be competitive.

Change is not a choice but a prerequisite

for the future.

kukdong spirit

kukdong spiritkukdong spirit

s o c i a L ReSpOnSibility

working diligently to be a trusted and responsible company.

Kukdong E&C actively supports Woongjin Group’s philosophy of doing business

with a compassionate spirit. Our company strives to think of ‘we’ before ‘me’.

We use our company’s resources to contribute to society and take responsibility

for our actions as a corporate citizen through such programs as the company’s

volunteer organization.

voLunteer grouP

The company’s Volunteer Group pays

periodic visits to social welfare facilities

to provide various forms of assistance

to our disadvantaged neighbors.

suPPort for caMBodia’s Poor

Extending our CSR activities internationally,

Kukdong E&C dispatches volunteers to help

with development works in selected towns

in Cambodia.

kukdong spirit

54 | 55

We sponsor education scholarships for bright and needy students, pro-

vide welfare for disadvantaged persons, make gifts and donations to

charitable organizations, provide funding to support the arts and culture,

and ensure that our business activities are conducted in an environmen-

tally responsible manner.

Protecting ugu streaM

Kukdong E&C assists in Woongjin Group’s work

to rejuvenate Yugu Stream in Gongju City.

The stream was severely damaged by pollution

with raw sewage and agricultural runoff.

suPPort for caMBodia’s Poor

Extending our CSR activities internationally,

Kukdong E&C dispatches volunteers to help

with development works in selected towns

in Cambodia.

environMentaL cLeanuP activities

We respect nature as the mother of all life.

Kukdong E&C volunteers help to pick up

litter along nature trails and walking paths

in Korea.

MuLticuLturaL Music

and inforMation Broadcasting

We deliver a full spectrum of music and life

information, 24 hours a day in four languages

(Chinese, Vietnamese, Tagalog and Thai),

providing immigrants with helpful programs

covering child-rearing, health, legal issues

and job searching.

57 FINANCIAL HIGHLIGHTS

58 INDEPENDENT AUDITORS' REPORT

59 BALANCE SHEETS

61 STATEMENTS OF INCOME

62 STATEMENTS OF CASH FLOWS

63 STATEMENTS OF CHANGES IN EqUITY

financiaL STATEMENTS

06 0807

totaL saLes

560

621

456

oPerating Profit

06 0807

38

40

7

06 0807

net incoMe

32

1

7

06 0807

totaL assets

580

643

710

2008 2007 2006

totaL saLes 456 621 560

totaL assets 710 643 580

oPerating Profit 7 40 38

net incoMe 7 1 32

FINANCIAL HIGHLIGHTS (Units : USD Million)

KRW/USD Exchange Rate, December 31, 2006: KRW 929.60/USD 1.00 | December 31, 2007 : KRW 938.20/USD 1.00 | December 31, 2008 : KRW 1257.50/USD 1.00

56 | 57

indePendent auditors' rePort

Based on a report originally issued in Korean

The Board of Directors and Stockholders

Kukdong Engineering & Construction Co., Ltd.:

We have audited the accompanying balance sheets of Kukdong Engineering & Construction Co., Ltd. (the “Company”) as of December 31, 2008

and 2007, and the related statements of income, appropriation of retained earnings, changes in equity and cash flows for the years then ended.

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial

statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require that we

plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit

includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes

assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement

presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kukdong Engineering

& Construction Co., Ltd. as of December 31, 2008 and 2007, the results of its operations, the changes in its retained earnings, the changes in its

equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the Republic of Korea.

The accompanying financial statements as of and for the years ended December 31, 2008 and 2007 have been translated into United

States dollars solely for the convenience of the reader. We have audited the translation and, in our opinion, the financial statements

expressed in Korean Won have been translated into dollars on the basis set forth in note 3 to the financial statements.

Without qualifying our opinion, we draw attention to the following:

As discussed in note 2(a) to the financial statements, accounting principles and auditing standards and their application in practice vary among

countries. The accompanying financial statements are not intended to present the financial position, results of operations, changes in equity and

cash flows in accordance with accounting principles and practices generally accepted in countries other than the Republic of Korea. In addi-

tion, the procedures and practices utilized in the Republic of Korea to audit such financial statements may differ from those generally accepted

and applied in other countries. Accordingly, this report and the accompanying financial statements are for use by those knowledgeable

about Korean accounting principles and auditing standards and their application in practice.

As described in note 37 to the financial statements, the Company acquired Woongjin Construction Co., Ltd. and Woongjin Ceramics Co., Ltd.

(formerly, Kukdong Ceramics Co., Ltd.) on May 14th, 2008 following the declaration of the board of directors on February 28th, 2008.

This report is effective as of February 18, 2009, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and

the time of reading this report, could have a material impact on the accompanying financial statements and notes thereto. Accordingly, the readers of the audit report

should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.

Seoul, Korea

February 18, 2009

BaLance sheets As of December 31, 2008 and 2007

Cash and cash equivalents 11,283 16,853

Short-term financial instruments 8,533 8,024

Available-for-sale securities 5 -

Accounts receivable - trade, net of allowance

for doubtful accounts

of \ 5,987 million (US$ 4,761 thousand) in 2008

and \ 2,460 million (US$ 1,956 thousand) in 2007 185,980 193,686

Other receivables, net of allowance


of \ 47,013 million (US$ 17,386 thousand) in 2008

\ 6,058 million (US$ 4,817 thousand) in 2007 192,873 62,250

Inventories 89,469 39,474

Other current assets 13,744 2,342

total current assets 501,887 322,629

Long-term financial instruments 10,364 1,420

Investment securities 40,812 39,671

Non-current investment 1,462 984

Property, plant and equipment.net 61,900 4,575

Intangible assets 1,113 903

Long-term accounts receivables - trade,

less allowance for doubtful accounts

of \ 433 million (US$ 344 thousand) in 2008 406 -

Long-term other receivables, net of allowance


of \ 17 million (US$ 14 thousand) in 2008

and \ 17 million (US$ 14 thousand) in 2007 3,917 1,053

Deferred tax assets 12,831 13,334

Deposits provided 5,191 4,542

Sundry other non-current assets 70,202 90,935

total non-current assets 208,198 157,417

total assets 710,085 480,046

ASSETS 2008 2007

58 | 59

(Units : USD thousand)

BaLance sheets As of December 31, 2008 and 2007

Liabilities

Accounts payable - trade 101,056 76,320

Other accounts payable 61,127 16,634

Short-term borrowings 164,880 90,501

Current portion of long-term debt 20,443 602

Other current liabilities 15,986 14,664

total current liabilities 363,492 198,721

Long-term debt, excluding current portion 41,085 6,182

Provision for lawsuit losses 1,819 -

Reserve for construction warranty costs 14,769 10,046

Retirement and severance benefits 7,272 7,728

Long-term deposits received 317 1,266

Long-term accrual expenses 140 -

total non-current liabilities 65,402 25,222

total liabilities 428,894 223,943

stockholders' equity :

Common stock and preferred stock of \ 5,000 par value:

Authorized - 40,000,000 shares

Issued and outstanding - 28,177,346 common shares 112,386 106,379

Issued and outstanding - 7,306 preferred shares 33 33

Capital surplus 87,803 66,884

Capital adjustments (899) (6)

Accumulated other comprehensive income 555 9,078

Retained earnings 81,313 73,735

total stockholders' equity 281,191 256,103

commitments and contingencies - -

total liabilities and stockholders’ equity 710,085 480,046

LIABILITIES AND STOCKHOLDERS' EqUITY 2008 2007


stateMents of incoMe For the years ended December 31, 2008 and 2007

Sales 456,362 463,510

Cost of sales 414,115 415,812

gross profit 42,247 47,698

Selling, general and administrative expenses 34,399 17,616

operating income 7,848 30,082

Interest income 14,064 8,805

Interest expense (13,010) (5,531)

Foreign currency translation gain, net 380 13

Foreign currency transaction loss, net (1) (13)

Equity in net income (loss) of equity method accounted investees 55 (14,923)

Bad debt expense-other (32,525) (2,052)

Loss on impairment of investments, net (8,032) (14,914)

Gain on sale of property, plant and equipment, net 46,472 8

Gain (loss) on sale of investments 439 (10)

Gain (loss) on sale of available-for-sale securities, net (501) 2,938

Donations (23) (25)

Other, net (819) 3,122

other income (expense) 6,499 (22,582)

Income before income taxes 14,347 7,500

Income tax expense 6,769 6,456

net income 7,578 1,044

Earnings per share of common stock in

Won and U.S. dollars 274 39

2008 2007

60 | 61


stateMents of cash fLows As of December 31, 2008 and 2007

cash flows from operating activities:

net income 7,578 1,044

Adjustments for depreciation 751 456

Amortization 320 241

provision for construction warranty costs 6,433 4,483

Accrual for retirement and severance benefits 2,472 2,905

bad debt expense 2,587 -

bad debt expense-other 32,525 2,052

equity in net loss (income) of equity method accounted investees (55) 14,923

loss (gain) on sale of available-for-sale securities 500 (2,938)

Reversal of provision for available-for-sale securities losses (252) (1,060)

loss on impairment of investments, net 8,032 14,914

Gain on sale of property, plant and equipment, net (46,472) (8)

loss (gain) on sale of investments (439) 10

Foreign currency translation gain, net (426) (10)

changes in assets and liabilities:

Accounts receivable - trade (43,827) 12,075

Other receivables (45,639) 27,462

Inventories (30,965) (36,498)

Other current assets (9,217) 909

long-term trade receivables 100 2,814

long-term other assets (2,865) 950

Deferred tax assets 3,850 (7,493)

Accounts payable - trade 21,828 (2,860)

Other accounts payable 43,993 1,019

Other current liabilities 1,796 (2,735)

payment of retirement and severance benefit (2,958) (883)

Severance benefit deposit (1,596) 58

Construction warranty (1,938) (2,002)

Other, net (7,090) 1,014

net cash provided by (used in) financing activities (60,974) 30,842

2008 2007


cash flows from investing activities:

Decrease in short-term financial instrument 8,000 -

Decrease in long-term financial instrument 157 -

proceeds from sale of investment securities 1,549 17,853

Decrease in short-term loans 26,519 16,223

Decrease in deposits provided - 908

proceeds from sale of property, plant and equipment 5 3,533

Acquisition of short-term financial instruments (6,203) (8,000)

Acquisition of long-term financial instruments (8,796) (130)

Acquisition of investment securities (18,332) (17,764)

increase in other receivables (83,289) (42,658)

increase in deposits provided (448) (1,117)

Acquisition of property, plant and equipment (472) (302)

Others, net 22,003 (88,626)

net cash used in investing activities (59,307) (120,080)

cash flows from financing activities:

proceeds from short-term borrowings 212,082 584,622

proceeds from long-term borrowings 8,103 -

proceeds from current portion of long-term debt 46,680 40

Repayment short-term borrowings (151,221) (521,404)

Repayment of long-term debt (40) (3,976)

Dividends paid (893) -

net cash provided by financing activities 114,711 59,282

net decrease in cash and cash equivalents (5,570) (29,956)

Cash and cash equivalents at beginning of year 16,853 46,809

cash and cash equivalents at end of year 11,283 16,853

stateMents of cash fLows For the years ended December 31, 2008 and 2007

2008 2007

62 | 63


stateMents of changes in equitY For the year ended December 31, 2008 and 2007

Balance at January 1, 2007 106,412 66,884 (3) 7,663 72,691 253,647 Net income - - - - 1,044 1,044Unrealized loss on available-for-sale securities 737 - 737Unrealized gain on available-for-sale securities - - - 678 - 678Change of equity in investees under the equity method (3) - - (3)Balance at december 31, 2007 106,412 66,884 (6) 9,078 73,735 256,103Increase due to merger 6,007 20,919 - - - 26,926 net income - - - - 7,578 7,578Unrealized loss on available-for-sale securities - - - (123) - (123)Acquisition of treasury stock - - (893) - - (893)Change of equity in investees under the equity method - - - (8,400) - (8,400)

Balance at december 31, 2008 112,419 87,803 (899) 555 81,313 281,191

Capital stock

Capital surplus

Capital adjustments

Accumulated othercomprehensive

income

Retainedearnings

Total stockholders’

equity


hoLding coMPanY

-woongjin holdings | Woongjin Holdings provides consulting and IT services to Group affiliates,

helping them to establish stable and transparent management systems.

environMent · consuMer

-woongjin coway | A company that makes, sells and leases household environmental appliances,

including water purifiers, air cleaners and bidets.

education · PuBLication

-woongjin think Big | An education services company that operates study programs and publishes educational materials.

-woongjin Passone | An education services company targeted at adult students,

Passone integrates online and offline education to create optimal learning systems.

construction · Leisure

-kukdong e&c | Kukdong E&C is an integrated engineering and construction company with broad experience and technical capability.

-rexfield country club | Boasting 3 courses and 27 holes, Rexfield is one of Korea’s most prestigious golf resorts.

food & Beverage

-woongjin foods | A company dedicated to the promotion of healthy lifestyles based on the consumption of healthful, natural foods and beverages.

service · finance

-Booxen | A publishing and distribution company backed by a sophisticated logistics information system.

-woongjin holdings it service area | A provider of general IT services to Group affiliates.

-woongjin holdings Business area | A provider of MRO(Maintenance, Repair and Operation), FM(Facility Management) and Call-Center Service to Group affiliates.

-woongjin capital | A specialist in hedge fund management, supported by advanced financial management systems.

-woongjin st | A specialist in mobile handsets, providing comprehensive corporate IT services, hardware and software.

-woongjin Lucas investment advisory | The customer’s asset management company that provide the best research and operation service

to customers to maximize the customer’s profit.

energY

-woongjin energy | We develop and distribute next-generation recycled energy products,

particularly specializing in the production and sales of ingot, a core material for making solar cells.

-woongjin Polysilicon | A leader in solar energy materials, which is a core future business of Woongjin Group,

we develop and produce polysilicon, a high-purity silicon product.

MateriaL

-woongjin chemical | A dealer in environmental materials such as chemical cellulose, polyester materials, textiles and filters.

ABOUT WOONGjIN GROUP

coMPanies dedicated to a convenient and heaLthY

LifestYLe, woongJin grouP

Woongjin Group was formed in 1980 as a specialist in the

education and publishing fields. It now comprises sixteen

companies in eight business areas business areas, and is

particularly known for its environmental technologies, such

as air and water purifiers, as well as domestic appliances.

The Group’s 2009 revenue target is 5,200 billion Korean

won. Woongjin Group is committed to fair business prac-

tices and transparent management. We pursue a strategy

of expansion under the belief that sustainable growth is a

company’s obligation.

64 | 65

woongjin chemical

woongjin coway

woongjin holdings

woongjin think Bigwoongjin Pass one

woongjin foods

kukdong e&crexfield country club

Booxenwoongjin holdings it service areawoongjin holdings Business area

woongjin capitalwoongjin st

woongjin Lucas investment advisory

woongjin energywoongjin Polysilicon

con-struction / Leisure

hoLding coMPanY

educationPuBLication

environ-MentconsuMer

MateriaL

service finance

energYfood & Beverage

ProVIdING tHE dyNAmIC ENErGy to ProPEL soCIEty forwArd INto tHE fUtUrE.

The future is a mirror, reflecting the history that came before it. Kukdong E&C sees tomorrow in

the light of its own proud history of honorable social contribution and economic growth. Rather

than focusing on short-term numbers, we have made long-term investments in technologies that

benefitted our customers and society. Instead of merely chasing profits, we have elevated the level

of construction industry performance and inspired our workers to overcome engineering challeng-

es. We have worked in cooperation with our business partners, earned the trust of our customers,

and delivered quality products to the market. Kukdong E&C prizes value creation above profit seek-

ing. We are working to create a prosperous future and a contented society, a place where forward-

thinking citizens protect and preserve the world’s precious assets for future generations.With a

long history of involvement in mega-scale projects and social infrastructure works, Kukdong E&C

will next turn its 60 years of know-how and technical capability toward the future, and stand at the

frontier of a new and global world.

pro

duce

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Kuk

dong

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ated

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Kukdong Engineering & Construction | www.kukdong.co.kr/eng60-1 chungmuro 3-ga, Jung-gu, seoul, korea

T +82-2-2280-6114 F +82-2-2275-0582

dubai office

room no. 611, Faisal ali Mukhtaral yousuf building 373-109, al barsha, dubai, uae (p.o.boX 118961, dubai, uae)

Cambodia Phnom Penh office1st Floor 92k, st.110, Tuolkok, phnom penh, cambodiaT +855-23-880-067 F +855-23-880-071

Vietnam Ho Chi minh officesaigon Trade center 1210, the 12th floor 37 Ton duc Thang st. district 1, ho chi Minh city, VietnamT +84-8-911-0770 F +84-8-911-0773

KUKDONG

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