Lotte E&C's headquarters in Seoul / Yonhap

An increasing number of major construction firms have put their assets up for sale amid a prolonged industry slump, caused mainly by high interest rates and commodity prices. Their apparent attempts to secure liquidity came as concerns have grown further after at least five medium-sized construction firms here have already gone bankrupt within the first couple months of this year.

According to industry officials, Lotte E&C asked several consulting firms to review the profitability of its plan to sell the site for its headquarters in southern Seoul's affluent Seocho District, as well as its other properties, to secure around 1 trillion won ($685 million) in cash.

"Through the latest consulting, we will accelerate our efforts to boost efficiency," a Lotte E&C official said.

Since the circulation of a rumor late last year that the group's cash-strapped construction and petrochemical units would lead it to declare a moratorium, Lotte Group has been trying to unload noncore assets of its affiliates.

The conglomerate, however, emphasized that it is not in urgent need to secure liquidity, dismissing concerns about its financial stability.

SK ecoplant is said to have met with multiple private equity firms to talk about selling its controlling stakes in waste management subsidiaries. The construction unit of SK Group is also facing a rumor that it seeks to sell SK oceanplant, a subsidiary manufacturing substructures for offshore wind turbines.

Although SK ecoplant said nothing has been decided regarding the sales of its subsidiaries, the company has recently tried to reduce costs through workforce downsizing and its planned relocation of headquarters from downtown Seoul to the city's southwestern area in 2027. Late last year, SK ecoplant also sold its two subsidiaries that recycle waste plastic.

GS E&C, the construction unit of GS Group, has sought to sell its controlling stake in GS Inima Environment, a Spanish water treatment company, which is evaluated at around 1.5 trillion won.

DL E&C, which sold its headquarters building in downtown Seoul for 130 billion won in November, plans to move to the westernmost part of the city by the end of this year. DL Group, the construction firm's parent, also put its three hotel buildings up for sale.

"We should quit unnecessary investments and minimize fixed costs," DL E&C CEO Park Sang-shin told employees earlier this year.

According to the Ministry of Land, Infrastructure and Transport, the number of construction firms that went out of business during the first two months of this year reached 84. Medium-sized construction firms that filed for court receiverships this year include Shindonga Construction, Daejeo Construction, Sambu Construction, Angang E&C and DSME Construction.