Hyundai E&C Business Trends & Monitoring — 2026-06-30

Key Business Updates and Risk Signals

• New Hillstate Project in Yangsan: The "Hillstate Yangsan The Sky," located in Mulgeum-eup and Beomeo-ri, Yangsan, Gyeongnam, is seeing strong interest from prospective homebuyers.

• Expansion into Green Hydrogen: Hyundai E&C has signed an MOU with HiGreen Energy, a leading Chinese electrolyzer manufacturer. This move aligns with the Hyundai Motor Group's "HTWO" hydrogen value chain strategy to develop new business in hydrogen production, storage, and transport.

• Busan Beomcheon District 4 Redevelopment: On the 22nd, Hyundai E&C secured a contract for the Beomcheon District 4 housing redevelopment project. The contract is valued at 853.1 billion KRW, representing 2.7% of last year's revenue.

• Financial Health Signals: Credit rating agencies expect a gradual recovery in profitability for Hyundai E&C. However, they note that managing overseas site costs amid global geopolitical risks and controlling working capital in the face of domestic housing market fluctuations remain the key factors for maintaining credit ratings.

Guarantee Risks and Subcontractor Issues

• Shaheen Project Cost Dispute: Hyundai E&C is currently in negotiations with several subcontractors regarding "over-expenditure" issues during the S-Oil Shaheen Project. Settlement talks regarding additional construction costs are ongoing.

• Rising Cost-to-Revenue Ratio: As of 2025, Hyundai E&C’s cost-to-revenue ratio was reported at 97.91%, meaning 97.91 million KRW is spent on costs for every 100 million KRW earned, highlighting ongoing challenges in cost control. (Recent data verification required).

• Overseas Cost Management Risks: Credit rating agencies have emphasized that managing overseas site costs—impacted by global geopolitical risks—is a critical task for maintaining credit stability.

1 sources

theguru.co.kr

현대건설, 中 하이그린 에너지와 그린수소 공급 협력 MOU 체결

Market Analysis and Insights

• Steady Stream of Urban Renewal Wins: With the Busan Beomcheon District 4 project, Hyundai E&C continues to strengthen its portfolio centered on urban renewal projects, aiming for the top spot in the sector for the eighth consecutive year.

• Portfolio Diversification Strategy: The move into green hydrogen and the expansion of the Hillstate housing brand reflect a shift away from traditional urban renewal, aiming to balance the portfolio and hedge against volatility in the housing market.

Important Practical Note: Given the ongoing construction cost disputes at the Shaheen Project and the high cost-to-revenue ratio (96-98%), there is an increased risk of delayed payments to subcontractors and potential guarantee insurance claims. Regular monitoring of subcontract payment schedules and the progress of dispute resolutions is highly recommended.