DL E&C expands partner support with interest subsidies, subcontract price-linking scheme

DL E&C is running a co-prosperity program aimed at stabilizing operations at its partner companies and strengthening their competitiveness.

The construction firm is supporting partners across financial, educational and ESG areas to ease the burden of raw materials price volatility and shifting business conditions, according to industry sources Wednesday.

A key initiative is a subcontract price-linking scheme designed to reduce cost pressures on partners. On Aug. 3, DL E&C established a new subcontracting dispute mediation body, allowing partner companies to file for dispute resolution.

From March through July, the company operated an emergency support task force for partner firms, monitoring raw materials supply conditions and seeking ways to minimize partners' burdens. The effort included reflecting cost fluctuations caused by raw materials price changes in contract amounts to ease partners' financial strain.

DL E&C is also providing financial support through a 7 billion won ($5.15 million) co-prosperity fund operated jointly with financial institutions. This year, the company contributed a total of 6.225 billion won in loan interest subsidies to 10 partner firms.

The company has also moved to build partner capabilities. On July 14, it held a mutual-cooperation job training session for about 250 partner company employees. It also plans to conduct ESG consulting for 21 partner firms this year to assess their ESG management levels and develop improvement plans.

"Stable management at our partner companies translates directly into sustainable competitiveness for the construction industry as a whole, which is why we are pursuing a wide range of co-prosperity initiatives," a DL E&C official said. "We will continue to listen closely to our partners and expand practical support measures that make a real difference."

Meanwhile, DL E&C posted preliminary sales of 1.65 trillion won and an operating profit of 69.9 billion won last year. The company has also been positioning itself as a leader in the AI infrastructure market after securing a series of data center contracts.