The Korea Land and Housing Corporation (LH) recorded an operating profit of 340.4 billion won last year. This is an increase of nearly 300 billion won compared to the previous year. The sales and net profit also showed double-digit growth rates. However, liabilities increased by 7.2 trillion won over the past year, failing to show signs of recovery in financial structure.
According to the public institution management information disclosure system (Alio) on the 14th, LH held a board meeting at the end of February and approved the 'settlement of account for the fiscal year 2024.'
According to the settlement of account, the operating profit last year was 340.4 billion won, a 678.9% increase compared to the previous year (43.7 billion won). During the same period, sales amounted to 15.5722 trillion won, up 12.1% from the previous year (13.884 trillion won), and net profit increased to 760.8 billion won, a rise of 47.5% compared to the previous year (51.58 billion won).
LH's operating profit plummeted from 1.8128 trillion won in 2022 to 43.7 billion won in 2023 as the real estate market contracted.
Regarding the improved performance last year, LH explained, "The supply of high-margin residential land increased."
Despite the improvement in performance, LH's liabilities increased by about 7.2 trillion won to 160.155 trillion won. LH's total liabilities have broken record highs every year, reaching 138.9 trillion won in 2021, 146.6 trillion won in 2022, and 152.9 trillion won in 2023.
The reliance on long-term loans has continued to increase, from 32.4% in 2019, 34.4% in 2020, 35.2% in 2021, 35.3% in 2022, 36.6% in 2023, to 35.8% in the first half of last year.
It is noted that LH's performance deterioration is attributed to its execution of the government's large-scale public housing projects and the expansion of its rental housing business.