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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
The road
to
Prosperity
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.
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.
Reaching
for
tomorrow
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.
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.
The Hub
of
Growth
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.
1969
Name changed to Kukdong E&C
1953
Company established
1947
12 | 13
-Building the future with new recycled energy
environmental businesses.
”
-Committed to a green and healthy future
14 | 15
-Setting a good example for the next generation
businesses.
”
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
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.
Economical concrete hardening method,
PF/R engineering method
Process Flowchart
Kukdong technology hardens concrete quickly and economically.
The PF/R(Prefab Fom / Rebar) engineering method is a form-
Plant fabrication
work and non-support type method for quickly and easily
hardening concrete. Iron reinforcement rods and forms, -Lattice cutting
and bending
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 - Slab fabrication
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
On-site fabrication
and more easily correct dislocations.
- Adding weights
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-
- Construction of
ry, so that only the prefab structure needs to be built on-site. non-column slab
molding cast
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.
100%
73.8%
Existing tech(slab): Construction period comparison
26%
savings 2.7 days
PF/R Slab 3.3 days
saved
6 days
High Form Tech
High Form Tech PF/R Slab
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.
Dogok Combined Complex Songpa Sincheondong Busan Myeongji Kukdong Apartment Garakdong Combined Complex
Construction Period 2004.9-2007.3 Multi-Complex Building Construction Period 2006.2 - 2008.11 Construction Period 2005.7 - 2007.10
Scale Total Area 34,046.58m2 Construction Period 2005.4 - 2007.5 Scale Total Area 187,292.33m2 Scale Total Area 16,403.39m2
1 complex, 96 households Scale Total Area 50,309.28m2 21 complexes, 1,124 households 1 complex
7 stories below ground 5 stories below ground 1 story below ground 7 stories below ground
20 stories above ground 10 stories above ground 15 stories above ground 19 stories above ground
connect point
connect point
lattice
connect point
connect point
connect point
connect point
22 | 23
Advanced Tunnel Construction Technique, Shield TBM
Reset
Segment
fabrication
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.
Riverbed Telecom Substation
Construction Period 2002.1-2005.4
Scale 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
24 | 25
World’s first TGV Rail Bridge,
PSC Box Girder Bridge + Concrete Arch Bridge
Process Flowchart
Quick and efficient construction of TGV rail bridge.
Bridge base and main body
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
Section main arch and wall
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.
Bridge Wall
Structured System
Fixed Arch Structure
Weight of upper deck transferred downward through small arches and columns(wall)
Upper wall
Hardening
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.
Gyeongbu High-speed Railway Construction Site
Construction Period 2005.4-2008.12
Scale Total Length 5.7km, Bridge 1,595m, Tunnel 1,885m
26 | 27
EXT-PILE engineering method produces
high quality foundations
Process Flowchart
Latest technique integrates the foundation with the building.
Supporting
The EXT-Pile method adds strength to PHC piles by attaching iron works
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 Iron works
foundation for buildings. With this new method, expansion completion
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 Ext-Pile
fabrication
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% Pile
placement
and reduces the need for subsequent reinforcement works.
ground
54 days
EXT-PHC Pile 19 days
saved
73 days
General PHC Pile
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.
Bucheon Gym/Cultural Facility Ulsan Sincheon Kukdong Apartment Busan Singoejeong Cheonan Agriculutral Runoff Processing Center
Construction Period 2005.3-2006.12 Construction Period 2004.11-2007.5 Kukdong Apartment Construction Period 2008.3-2009.10
Scale Total Area 90,644.8m2 Scale 11 complexes, 960 households Construction Period 2005.3-2007.4 Scale Capacity 120 tons/day
3 stories below ground 2 stories below ground Scale 8 complexes, 470 households (Purification process 90 tons/day, Recycling process 30 tons/day)
4 stories above ground 23 stories above ground 2 stories below ground Total Area 1,802m2, 1 story below ground, 2 stories above ground
25 stories above ground
28 | 29
B U S I N E S S
O v e r v i e w
CIVIL works
BUILDING works
PLANT works
30 | 31
CIVIL
WORKS
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.
BUSINESS AREA
-Roads, Expressways
-Bridges
-Railroads, Subways
-Water Supply and Sewage
-Ports, Seawalls, Dams
-Site Preparation
-Golf Courses, Air Fields, Telecom & Power Supply Nodes
MAJOR performance
32 | 33
01
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.
03
04
05
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 06
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.
09
34 | 35
01
02
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.
11 Wastewater Treatment
05
03 04 06
Wastewater Treatment
08
07
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
11
09 10 12
36 | 37
BUSINESS AREA
MAJOR performance
BUILDING
WORKS
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.
Malaysia Kuala Lumpur Petronas Twin Towers
38 | 39
01
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.
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 06
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.
09
40 | 41
01
02
11 Wastewater Treatment
04
03 05
Wastewater Treatment
07
06
15 Wastewater Treatment
09
08 10
42 | 43
PLANT
WORKS
& New business
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.
BUSINESS AREA
MAJOR performance
44 | 45
There is a renaissance in overseas construction going on. Oil
01
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.
03
04
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
06
engineering plants handling high-tech materials, such as the polysilicon
factory of Woongjin Polysilicon.
46 | 47
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
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
Shared Value
of Environmental
Management
Customer satisfaction
VALUE TO ECOsystem
VALUE TO EARTH
VALUE TO CUSTOMER
VALUE TO SOCIETY
Practice respect for the environment
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.
Green purchasing
Supportive mindset
Global company
through new-green
management
VALUE TO EARTH
VALUE TO CUSTOMER
VALUE TO ECOsystem
VALUE TO SOCIETY
50 | 51
love for customer
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.
H u m an
Nurturing human talent and a healthy organizational culture.
High-quality human capital is the core of corporate competitiveness. Excellent
resources 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
Your willingess to work with joy
makes a huge difference
in your performance capabilities. love for change
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.
52 | 53
Volunteer Group
The company’s Volunteer Group pays
periodic visits to social welfare facilities
to provide various forms of assistance
to our disadvantaged neighbors.
Kukd
ong
Spir
it
s o c i a l
Working diligently to be a trusted and responsible company.
Kukdong E&C actively supports Woongjin Group’s philosophy of doing business
responsibilit y 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.
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.
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
Kukdong Spirit
covering child-rearing, health, legal issues
and job searching.
54 | 55
financial
statements
57 financial highlights
59 Balance Sheets
61 Statements of Income
Operating Profit 7 40 38
Net Income 7 1 32
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
710
643
621
40
580
38
560
456
32
7
7
06 07 08 06 07 08 06 07 08 06 07 08
Total Sales Total Assets Operating Profit Net Income
56 | 57
Independent Auditors' Report
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.
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.
Seoul, Korea
February 18, 2009
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.
Balance Sheets As of December 31, 2008 and 2007
(Units : USD Thousand)
58 | 59
Balance Sheets As of December 31, 2008 and 2007
(Units : USD Thousand)
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 -
2008 2007
60 | 61
Statements of Cash Flows As of December 31, 2008 and 2007
(Units : USD Thousand)
2008 2007
2008 2007
Statements of Changes in Equity For the year ended December 31, 2008 and 2007
(Units : USD Thousand)
Balance at December 31, 2008 112,419 87,803 (899) 555 81,313 281,191
62 | 63
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.
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.
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.
Woongjin Holdings
Holding
Company
Con- Education
struction / Publication
Leisure Woongjin Coway
Service Environ-
Finance ment
Consumer
Booxen
Woongjin Holdings IT Service Area
Food
Woongjin Holdings Business Area Woongjin Foods
Energy & Beverage
Woongjin Capital
Woongjin ST
Woongjin Lucas Investment Advisory
Material
Woongjin Energy
Woongjin Polysilicon
Woongjin Chemical
64 | 65
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.
Produced by Kukdong E&C | Created by InterGram
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 Office
1st Floor 92k, St.110, Tuolkok, Phnom Penh, Cambodia
T +855-23-880-067 F +855-23-880-071