GS E&C completes Southeast Asia’s first rail testing facility in Singapore

GS Engineering & Construction announced Tuesday that it has completed construction of the Singapore Rail Test Center in the western region of Singapore, five years after the Korean builder won the contract to construct the first such facility in Southeast Asia. At a completion ceremony held last Friday, attended by officials from Singapore’s Land Transport Authority and GS E&C, the company highlighted how the center brings together Singapore’s diverse urban rail systems into a single facility capable of testing durability, performance, compatibility and top speeds. The center will play a key role in identifying and addressing potential issues by testing and inspecting new trains before they are deployed on Singapore’s rail lines. Built on a 540,000-square-meter site, the facility features three test tracks totaling 16.9 kilometers, along with 10 buildings, including a central control center and a general administration building. While the center is the tenth of its kind globally, it is the first in Southeast Asia. GS E&C, in consortium with the Korea Railroad Research Institute, secured the project from the LTA in 2020 for approximately 550 billion won ($373 million). When building the facility, GS E&C employed a range of advanced construction technologies to ensure both high-quality results and efficiency. The company used the precast concrete method, which involves manufacturing concrete structures off-site and assembling them on-site, to enhance precision and quality. It also adopted Building Information Modeling to identify and address potential risks through 3D simulations. According to the company, these efforts contributed to 14 million accident-free work hours, with the project completed on time and to high-quality standards. “The successful completion of this complex project has proven our technical capacity as a global rail infrastructure builder,” a company official said. “We will continue to promote the status of Korean construction firms in overseas markets based on the expertise we’ve demonstrated in Singapore.”

KakaoTalk to get big AI boost as Kakao, OpenAI join forces

OpenAI CEO Sam Altman visits Seoul to discuss new partnerships with Korean tech giants Korean tech giant Kakao and ChatGPT creator OpenAI announced a strategic partnership on Tuesday in Seoul, unveiling plans to integrate OpenAI’s ever-evolving artificial intelligence technology into KakaoTalk and other key services. “Kakao is committed to securing the best AI technology and turning all imaginable AI-era services into reality. We’re delighted to partner with OpenAI in this strategic collaboration,” Kakao CEO Chung Shin-a said during a press conference at a Seoul hotel earlier in the day. She added that ChatGPT’s capabilities would be incorporated into various Kakao projects, including its flagship services such as KakaoTalk messenger. “Beyond simply leveraging the latest AI advancements, this partnership underscores our effort to co-develop AI products tailored for Kakao’s 50 million users,” she said. Since September last year, Kakao and OpenAI have explored multiple areas of cooperation, including technology, services and business, under the shared vision of making AI services more accessible to the public, the Korean tech giant's chief explained. As part of the collaboration, Kakao is to integrate OpenAI's latest AI technology into its key services, including KakaoTalk and Kakao's new conversational AI service Kanana. Additionally, the company will implement ChatGPT Enterprise to accelerate its transformation into an AI-native company. Regarding joint product development, the two firms aim to leverage Kakao's deep understanding of Korean users and OpenAI's advanced AI technology to accelerate the mass adoption of customized AI services. “(Korea) is a great market for us and I think AI documenting in general has been quite incredible. There's so much in Korea that makes a good fit. If you think about all the engines here from energy to semiconductors to internet companies, it's really a strong place for AI adoption. It's growing super fast and we love to do a partnership like this. It’s quite impressive,” OpenAI CEO Sam Altman said. "I think (Kakao and OpenAI) had a shared vision for what AI can do. We are particularly interested in AI and messaging. I think there is a really rich thing to explore there and improve the experience a lot for users, and (we're) also excited that you wanted to do this as just the start and really explore many more things together,” he added. Expressing optimism for the partnership, Chung said, "We have high expectations for this strategic collaboration with OpenAI, a global AI leader. This alliance will be a turning point for advancing our orchestration strategy and bringing the future closer." Regarding OpenAI's potential plans to establish a Korean branch, Altman said, "We don't have anything specific to announce (for) our timelines, but this is an incredibly important market and you should expect to see us more.” Before the press event, Altman hosted OpenAI's first-ever private workshop in Korea, titled "Builder Lab." He also met with SK Group Chair Chey Tae-won for a 40-minute discussion on AI semiconductors, AI ecosystem expansion and broader collaboration between OpenAI and the group. Discussions reportedly covered chipmaking unit SK hynix’s high-bandwidth memory supply and telecommunications unit SK Telecom’s AI data center initiatives. Later in the day, Altman also met with Samsung Electronics Chair Lee Jae-yong and SoftBank Group CEO Masayoshi Son at the Korean tech giant's Seocho-gu office building in Seoul. On the way to the high-profile meeting, Son met with a group of local reporters in Seoul and hinted, "We are going to talk about the update on Stargate and potential collaboration with Samsung." Stargate is a $500 billion joint venture between OpenAI and SoftBank to enhance AI infrastructure. Additionally, there are rumors of a possible hardware partnership being discussed for an AI-specific device, which Altman hinted at last month. Regarding the participation of Korean companies in the Stargate project, Altman said during the Kakao event, “I don't want to comment here for that, but we’d like to keep partnerships sort of confidential and (we're) talking to many companies all the time.” On Tuesday, the OpenAI chief also attended a business luncheon with major conglomerate owner families, including SK, GS, Hyosung and Kolon, to discuss business cooperation plans, including AI, according to industry sources. Key attendees reportedly included HS Hyosung Vice Chair Cho Hyun-sang, SK Networks President Choi Sung-hwan, GS E&C CEO Huh Yoon-hong and Kolon Vice Chair Lee Kyu-ho. Following his time in Korea, Altman is set to visit New Delhi on Thursday, followed by Berlin on Friday. He is also scheduled to attend the AI Safety Summit in France on Feb. 10 and the World Government Summit in the United Arab Emirates on Feb. 12.

Korea's overseas construction orders hit $1tr milestone

South Korea’s cumulative overseas construction orders surpassed the $1 trillion milestone just before the turn of the new year, underscoring the country's sustained growth and global appeal. The achievement comes 59 years after Hyundai Engineering & Construction secured its first overseas order in November 1965, constructing the Taphani-Narathiwat highway in Thailand. According to the Transport Ministry on Friday, the cumulative overseas construction order amount exceeded $1 trillion last month, from $996.5 billion in November. Transport Minister Park Sang-woo highlighted the $1 trillion achievement as a key accomplishment in his New Year’s address, stating it significantly contributed to national economic growth. However, the government fell short of its annual target of $40 billion in overseas construction orders, with total orders from January to November 2024 reaching $32.69 billion, according to the Overseas Construction Association. The country's annual overseas construction orders peaked at $71.6 billion during the boom year of 2010. However, that gradually declined to $22.3 billion in 2019, in the face of the US-China trade dispute and a reduced number of projects in the Middle East. Since then, orders have rebounded, recording $30.6 billion in 2021 and moving up to $33.3 billion in 2023, marking three consecutive years of growth. Last year, the Middle East played a key role in driving performance. The region, which accounted for 34 percent of overseas orders in 2023, saw its share grow to about 50 percent. This increase was led by major projects such as Hyundai E&C’s $5.08 billion Amiral Petrochemical Plant in Saudi Arabia, which was followed by other significant orders in the country. In April last year, Samsung E&A and GS Engineering & Construction secured a $6.08 billion Fadhili Gas Plant project from Saudi Aramco, marking the largest project ever awarded to a Korean construction company in Saudi Arabia. While setting the $1 trillion milestone in overseas orders is a significant achievement, industry officials anticipate a mix of opportunities and challenges ahead. "With the nation's political instability following the martial law turmoil, combined with global uncertainties, projections for overseas construction orders this year are realistically tough," an official from a major construction firm here said. "We have to be prepared for increased competition, fluctuating energy prices and the evolving demands of key markets like the Middle East and Southeast Asia." Looking ahead, the government seeks to transition from contract-based overseas construction to a greater focus on high-value investment-development projects. Investment-development projects are characterized by participants bearing some or all of the costs, proposing the project and sharing profits and losses based on their stakes. The proportion of such projects in Korea’s overseas construction orders averaged 5.1 percent annually between 2018 and 2022, but rose to double digits last year.

GS E&C unveils Korea’s first land-based smart salmon farm in Busan

GS Engineering ＆ Construction announced Friday that it has completed the construction of Korea‘s first land-based smart salmon farm, the Busan Smart Aquaculture Cluster, marking the start of full-scale operations to provide domestically farmed salmon. The completion ceremony, held in Busan’s Gijang-gun, was attended by GS E＆C CEO Huh Yoon-hong and public officials from the Ministry of Oceans and Fisheries and the Busan Metropolitan Government. Some 150 attendees toured around the state-of-the-art facilities. “The completion of the Busan Smart Aquaculture Cluster will contribute to the sustainable growth of Korea’s fisheries industry by expanding the adoption of smart aquaculture technology and enhancing expertise and competitiveness in marine-specific plant operations,” Huh said. The smart aquaculture project in Busan began in 2019 with government support, receiving both national and municipal funding. In July 2020, GS E＆C signed a business agreement with the Busan Metropolitan Government to develop the cluster. GS E＆C has since participated as a private investor through its subsidiary, Eco Aquafarm, established the same year. The cluster’s standout feature is its environmentally friendly water treatment system, which employs Korea’s first Recirculating Aquaculture System. Unlike traditional offshore methods, this closed-loop system allows salmon farming to take place on land. RAS draws groundwater or seawater into land-based aquaculture facilities and uses advanced water treatment technology to remove contaminants and purify the water for salmon cultivation. The used water is then retreated before being discharged back into the ocean. Such a system enables the reuse of up to 99 percent of the water, significantly enhancing environmental sustainability. By adopting RAS, GS E＆C expects to produce clean salmon, free from issues like the microplastics, heavy metals and viruses often associated with traditional offshore farming. The completion of this facility marks a breakthrough in Korea‘s aquaculture industry by enabling domestic production of Atlantic salmon, a species that has previously been entirely imported. Located within the Fisheries Science Research Institute at Pukyong National University in Gijang-gun, the Busan Smart Aquaculture Cluster has the capacity to produce up to 500 metric tons of salmon annually. The facility has already begun raising Atlantic salmon, with eggs introduced in two phases in July and November this year. The salmon will undergo a cultivation period of some two years, with full-scale shipments planned to start in the fourth quarter of 2026.

Seoul shares end 3-day rise; won snaps 5-day rise

South Korean stocks fell slightly Thursday to end their three-day winning streak as major shares ended in mixed territory. The local currency fell against the US dollar for the first time in six sessions. The benchmark Korea Composite Stock Price Index lost 1.66 points, or 0.07 percent, to close at 2,480.63. The main index had been rising since Monday. Trade volume was moderate at 440.4 million shares worth 8.1 trillion won ($5.8 billion), with decliners beating gainers 477 to 392. Foreigners dumped a net 259.5 billion won, continuing in net-selling mode for the 10th consecutive session. Individuals offloaded a net 127.3 billion won, while institutions scooped up a net 298.8 billion won. Overnight, Nvidia reported a 94 percent increase in sales and a 101 percent rise in profits for the third quarter, beating market expectations. But its shares fell after the bell as its performance failed to meet the lofty expectations of some investors. In Seoul, semiconductor shares ended mixed on the Nvidia results. Tech giant Samsung Electronics advanced 1.99 percent to 56,400 won, while SK hynix, one of Nvidia's largest partners, fell 1.06 percent to 168,800 won. Top carmaker Hyundai Motor dropped 1.37 percent to 215,500 won and leading shipbuilder HD Korea Shipbuilding & Offshore Engineering retreated 2.79 percent to 198,300 won. On the other hand, chemicals and builders were among the winners. LG Chem, the leading chemicals maker, rose 1.03 percent to 294,500 won and GS Engineering & Construction jumped 3.65 percent to 18,450 won. Leading retailer Lotte Shopping gained 3 percent to 58,300 won and bio tech firm Celltrion climbed 1.34 percent to 173,700 won. The local currency was trading at 1,397.5 won against the greenback at 3:30 p.m., down 6.6 won from the previous session, marking the first daily drop since Nov. 13. (Yonhap)

GS E&C wins $376m contract to build subway tunnel in Australia

South Korean construction giant GS Engineering and Construction announced Monday that it had won a $375.7 million contract to build a subway tunnel in Melbourne, Australia. Awarded by Victoria’s Suburban Rail Loop Authority, the contract is part of the broader Suburban Rail Loop project, which aims to construct a 90-kilometer orbital rail line connecting various regions of the city. GS E&C said it will participate in the SRL East project, valued at $1.1 billion in total, to build a 10-kilometer twin tunnel section, including 39 emergency access points and two underground stations. When complete, the SRL East line will add six new stations across a 26-kilometer route. Construction is set to begin this year, with an anticipated opening date of 2035. GS E&C’s Australian branch will hold a 33.5 percent stake in the joint venture for the project, joining Italy’s Webuild (33.5 percent) and France's Bouygues (33 percent), the company said. “This contract is a crucial step in solidifying our presence in Australia’s infrastructure sector,” a GS E&C official said. “With our technical expertise and extensive experience in global construction, we are committed to successfully completing this project and further expanding our footprint in the Australian market.” This contract marks GS E&C’s second major infrastructure project in Australia. The company first entered the market in 2021 with the $6.6 billion North East Link PPP project to connect Melbourne’s outer ring road with the eastern freeway. The North East Link remains one of Australia’s largest infrastructure contracts.

GS E&C keen to improve profitability, spur growth

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."

GS E&C sets new vision centering on innovation, trust building

GS Engineering & Construction unveiled Friday a new vision and six core values to foster ongoing growth and enhance employee integration. GS E&C CEO Huh Yoon-hong announced the company's new slogan: "Perfecting a safer today, forging a brighter tomorrow: with transparent trust and relentless innovation, we create a better future for all," to the builder's employees via an intranet video. The company aims to transcend traditional construction, aspiring to become an organization that contributes positively to the world. Along with the new vision, GS E&C introduced six core values to shape employee mindsets and organizational culture. These include customer-centricity and trust as primary objectives, alongside autonomy and responsibility, ethical management, future orientation and expertise as foundational principles. This reflects the company's aim to improve customer satisfaction and build stakeholder trust for sustainable business success. The company also emphasized that the new vision and core values were developed collaboratively with external experts, fully integrating feedback from employees. GS E&C plans to strengthen its business portfolio and enhance its risk management framework in line with the new vision. The company aims to foster continuous organizational change by prioritizing internal stability over external growth and enhancing operational efficiency through digital-based infrastructure. Through these changes, the company seeks to nurture creativity, foster collaboration and increase organizational flexibility, ultimately becoming a safer and more responsible entity. "Our new vision will help clarify our company's ultimate mission and position us as a more trusted and valued partner by all stakeholders," said Huh.

GS Entec commits W300b to offshore wind power business

GS Group's energy equipment manufacturing arm GS Entec announced Tuesday it plans to invest 300 billion won ($217 million) to transform its offshore wind power structures. The investment includes 214 billion won for the introduction of automated facilities to produce offshore wind power substructures and 86 billion won for the construction of additional buildings over the next two years. Established in 1988, GS Entec originally focused on chemical and oil refining plants. Since 2020, aligning with GS Group's eco-friendly future business strategy, the company has been transitioning to become a global operator of offshore wind power substructures. As part of this transformation, it secured 90 billion won from private equity firm Dominus Investment and Simone Investment Managers. In 2022, GS Entec signed an exclusive technology license agreement with Sif Netherlands BV, the Dutch offshore wind power manufacturer with the largest global market share, to produce monopiles mainly targeting the Asian offshore wind foundations market. Monopiles, made by welding large steel plates into cylindrical shapes, support offshore wind generators on the seabed. They offer shorter manufacturing periods and lower costs compared to traditional structures such as floating platforms or tripods. As a result, GS Entec’s Ulsan plant has been converted from a fire machine production site to a monopile production facility through technical collaboration with Sif, producing its first product in March. The completion of automated monopile production facilities is expected to enable the plant to produce monopiles of various specifications more quickly and accurately, according to GS Entec. Recently, GS Entec secured a contract to supply 64 monopiles, valued at some 200 billion won, for a wind power project in Yeonggwang, South Jeolla Province, being led by Myeongwoon Industrial Development. After fulfilling the contract by September next year, GS Entec plans to pursue additional orders to support the expansion of the domestic offshore wind power market. The company also aims to actively target the Japanese market, which plans to expand offshore wind power production to 30 to 45 gigawatts by 2040. "GS Entec's investment and business transformation are driven by GS Group's strategy of 'future growth through digital eco-friendliness,'" a GS Group official said. "We will enhance cooperation with other affiliates like GS E&R and GS EPS as we enter new offshore wind power ventures."

GS launches AI-driven hackathon to spur DX innovation

Korean energy, retail and construction conglomerate GS Group launched its annual hackathon on Wednesday, running to Thursday, centered on artificial intelligence to drive digital transformation across the company. GS Group has hosted such hackathon events since 2020, but this marks the first year participants are allowed to use generative AI, including ChatGPT, with the aim of enhancing AI utility capabilities among employees. "With the advent of generative AI, we've entered a period where our field employees can directly drive digital innovation. We should equip all employees across the group with the ability to proficiently use generative AI tools," said GS Group Chairman Huh Tae-soo. According to the company, out of approximately 600 employees across 19 affiliates, including GS Caltex, GS Retail, GS E&C, GS Energy, GS EPS, GS E&R and GS Global, 351 employees forming 83 teams participated. This year's event aims to provide employees with the opportunity to experience how AI can transform their work life and build their confidence given the rapid integration of AI into daily life. In addition, some 30 digital innovation experts from GS Group, including user experience designers, information technology developers and design thinking coaches, were on hand to provide advice to participants over the two-day event. During the event, participants discussed a wide range of ideas, from improving work process efficiency with AI to enhancing customer experiences at convenience stores, gas stations and construction sites, as well as ideas unrelated to work -- all observed during their work environments and everyday lives. One participant from GS Caltex said, "I joined this year's event with team members from last year. This time, we aim to create a program through AI that helps fathers participate more actively in child care." Teams were formed with three to five members from the same company or in mixed teams with individuals from different affiliates under GS Group. Before the event, they underwent a two-week preorientation to learn about generative AI tools and design thinking methodologies to develop their ideas. Winning teams are to be announced July 24. To develop their results into practical business models, they will also be presented to the executive board later this year. The intellectual property rights of the results will belong to GS Group, the company said. "It's crucial for every employee to gain experience in using digital and AI tools to improve their work and business as part of transforming the company's overall culture to be more digitally friendly," said Kim Jin-ah, head of GS Group's open innovation team, which designed the hackathon.