Kolon Global earns top rating in Ministry of Land mutual-cooperation assessment for 2nd consecutive year

Kolon Global announced Friday it had earned the top rating in the Ministry of Land, Infrastructure and Transport's "Mutual Cooperation Assessment Among Construction Businesses" for the second consecutive year.

The assessment is a system designed to foster close cooperative relationships between general and specialty construction companies, as well as between large and small- to mid-sized contractors. The Ministry of Land, Infrastructure and Transport evaluates large enterprises and general construction firms with a construction capacity assessment value of 500 billion won ($322 million) or more each year, rating them on three criteria: joint contracting and subcontracting performance, partner company development, and creditworthiness. Scores across each category are combined to assign one of five ratings — outstanding, excellent, good, average or poor — and a total score of 95 or above is required to receive the highest "outstanding" designation.

Earlier, Kolon Global joined the Korea Fair Trade Commission's "Construction Industry Mutual Growth and Fair Trade Agreement" in May as a member of the general construction sector and signed the accord. More recently, the company has worked to ease the financial burden on its partner firms by swiftly adjusting supply prices during emergencies amid raw material price spikes driven by external supply chain instability, including the war in the Middle East. The company credited these cooperative efforts with its partners for the latest achievement.

With the outstanding rating, Kolon Global will receive a range of benefits for one year starting this month, including bonus points in preliminary project performance evaluations (PQ) for public bidding through the Public Procurement Service and local governments, additional points in the calculation of its construction capacity assessment value, and a reduction of penalty points under the Framework Act on the Construction Industry.

"Earning the outstanding rating for two consecutive years is the result of the trust we have built with our partner companies," a Kolon Global official said. "We will continue to communicate consistently with our partners and work toward mutual growth and cooperative development."

Meanwhile, Kolon Global, which has been restructuring its business around profitability, posted operating profit of more than 20 billion won in the first quarter of this year, a 129 percent jump from the same period a year earlier.