South Korea’s leading construction company GS Engineering & Construction is ramping up efforts to enhance financial stability and spur growth in key growth drivers.

Currently, GS E&C is exploring various strategic options, including stake sales in its subsidiaries such as GS Inima Environment and GS Elevator, as part of efforts to secure cash for growth.

GS Inima Environment, a global water treatment and purification company based in Spain, is a notable asset within GS E&C's portfolio.

Acquired in 2012 and integrated as a wholly owned subsidiary, the company reported a net profit of 522.2 billion won ($388 million) last year. It also remained profitable in the first half of this year, with 243 billion won in sales and 21.7 billion won in net profit, contributing some 15 percent of GS E&C's annual operating profit.

GS E&C's major strategy involves exiting low-profit ventures that have not met market share expectations and enhancing financial stability by selling well-performing businesses when their value is high. The proceeds from these sales will be reinvested to secure sustainable growth. Such a move presents an opportunity to reinvest in new ventures, mitigate financial risks and secure additional high-performing assets.

As a result of such a strategy, GS E&C achieved an operating profit of 146 billion won in the first half of 2024, marking a rapid turnaround in a single year. GS E&C’s stock price has also risen by over 40 percent since CEO Huh Yoon-hong's appointment in October 2023.

In its core housing business, GS E&C is also enhancing stability through selective, profit-oriented orders.

As a leading player in redevelopment and reconstruction projects, the company has been awarded contracts for two maintenance sites this year, one in Suyeong-gu, Busan and another in Songpa-gu, Seoul, totaling some 711.6 billion won.

GS E&C plans to continue its sustainable management approach by actively investing to build a robust portfolio.

"We are swiftly adapting to the evolving market environment and will accelerate our focus on profitable businesses," GS E&C's Chief Financial Officer Chae Hun-geun said. "Our goal is to further solidify our position in the global market by maintaining financial stability."