Kyeryong Construction, a medium-sized construction company ranked 15th in construction capacity evaluation (2025), won two government contracts last week, securing contracts worth nearly 500 billion won. The total size of the contracts won two days apart exceeds 15% of last year's revenue. These achievements were made in the Chungcheong Province region, including Daejeon, Sejong, and Dangjin.
According to the Financial Supervisory Service and Kyeryong Construction on the 4th, the company won a contract with Daejeon Urban Railway Corporation for the construction of Line 2, Section 12, through the Public Procurement Service on August 27. The contract amount is 97.576 billion won, which constitutes 3.08% of last year's revenue (3.169 trillion won). The contract for Line 2, awarded to Kyeryong Construction, involves the construction of a circular line extending the urban railway (tram) by 38.8 km, passing through five districts in Daejeon. Among these, Kyeryong Construction plans to build Section 12, which covers a total length of 4.678 km from 338-8 Yucheon-dong to 2-1 Munchang-dong in Jung-gu, Daejeon. Completion is scheduled for December 2028.
On August 29, Korea Land & Housing Corporation (LH) awarded the construction of public housing projects in the Administrative Complex City (Dasom-dong, Sejong) and Seokmun National Industrial Complex (Sunggu-district, Dangjin) to a consortium led by Kyeryong Construction. The amount reflecting the equity ratio of Kyeryong Construction in the consortium is 397.6 billion won, which is 12.55% of last year's revenue. When combining the amounts from the two contracts, it totals 495.251 billion won, exceeding 15% of last year's total revenue.
The public housing construction project won on the 29th involves building apartments in three blocks in the Administrative Complex City and Seokmun National Industrial Complex. LH will provide the land, and private construction companies will undertake the construction and sale of the dwellings, constituting a public housing project with private participation. The targeted areas are 52M2 and 52L2 in the Administrative Complex City and Block B-6 in Seokmun National Industrial Complex in Dangjin. A total of 2,362 dwellings will be created across three blocks, with a total project cost of 685.8 billion won.
Kyeryong Construction formed a consortium with DL E&C, Daebo Construction, and Isu Construction to win the contract. The equity ratio of the consortium has Kyeryong Construction holding the largest share at 58%, followed by DL E&C (22%), Daebo Construction (10%), and Isu Construction (10%), each holding 10-20% equity. An LH official said, "We plan to sign a business agreement within the second half of this year and commence construction."
Founded in 1978, Kyeryong Construction is the largest general construction company in the Chungcheong region, with its headquarters in Daejeon. The two contracts won last week were also ordered in the Chungcheong Province region. Its ranking in the construction capacity evaluation this year is 15th, and it has 15 subsidiaries. It is also listed on the securities market.
It is also considered a strong player in public and government contracts. An official from Kyeryong Construction noted, "The proportion of public and government contracts is relatively high compared to other medium-sized construction companies," adding, "More than 50% of the total contracts are public and government contracts." This official further stated, "We have accumulated a lot of experience in this field over a long period, and as know-how has been built up in design and other aspects, the proportion of this sector in our portfolio has increased."
Professor Seojin-hyung from Kwangwoon University's Department of Real Estate Law said, "Some construction companies have actively engaged in sales for public and government projects rather than private projects, expanding their business in this sector, and Kyeryong Construction is one of these companies."