Korea: Contract Filings Decrease
In 2013, construction industry listed on securities market saw greatly increased value of contract filings while shipbuilding industry saw the contrary result.
According to Korea Exchange, in the year to May, a total amount from single sale and awarded contracts from regulatory filings of listed corporations was KRW 33.2661trn ($29.5bn), a 29.7% rise from the same period a year ago.
By each industry, total amount seen in construction related industry came to KRW 15.8258trn, showing an increase of 67.7% from the same time period of a year ago, contributing to 47.6% of total. Samsung Construction and Trading (C&T) was the one which achieved the highest track record with KRW 6.4114trn of Roy Hill project awarded from Australia.
Meanwhile, shipbuilding industry having a long-protracted recession won the overall contract value of KRW 9.8730trn, seeing a year-on-year decline of 8.5% and got overtaken by construction industry.
In detail, Daewoo Shipbuilding & Marine Engineering topped in the shipbuilding industry and was ranked second in total, having announced through regulatory filings that it had been awarded contracts totalling around KRW 4.1750trn (four contracts signed), including the latest deal with four large containerships, etc.
The second place in the shipbuilding industry was taken by Hyundai Heavy Industries with KRW 2.1570trn (one contract) with the followings of Samsung Heavy Industries, Hyundai Mipo Dockyard and STX Offshore & Shipbuilding, respectively with KRW 2.1081trn (three deals), KRW 1.1271trn (five contracts) and KRW 191.6bn (one contract).
Meanwhile, as for listed corporations on securities market, they are required to announce through a regulatory filing when signing a single sale or a supply contract worth more than 10% of the revenue posted in the latest business year. Among the listed ones, it is mandatory for the large enterprises with at least KRW 2trn of total asset recorded from the late business year to post a regulatory filing when signing a contract worth more than 5% of revenue.