KuKdong engineering & construction

In August, 2007, Kukdong E&C proudly joined

Woongjin Group. In January, 2008, Woongjin Group
launched a new corporate logo, and accordingly,
Kukdong E&C revealed its new corporate identity
at the same time.

Woongjin Group’s logo has been created with a

simple and unique style to leave a singular visual
impression that makes Woongjin Group stand out
from other companies.

Six symbols are arrayed around the Woongjin

company name. Their bright and vivid shapes ex-
press the positive, people-oriented nature of our
company. The unusual visual effect portrays Woongjin
Group’s creativity and unique perspective, as well
as its corporate culture, in which many different
elements merge and work together harmoniously.

The six symbols represent Work, Society, Change,

Organization, Challenge and Customers, toward all
of which we direct our dedicated efforts. The con-
joined circles symbolize the connectedness of the
companies within the Group, and of the companies
with their customers. The circles also represent
the infinity symbol, showing our will to lay a strong
foundation for endless expansion of our business.

01 introduction 18 CEO's message 20 key technology 30 business overview 48 csr 56 financial statements 64 about woongjin GROUP
We create architectural value that withstands the test of time.

Let Kukdong E&C be your partner in the global era. For architectural creations to be considered
truly great, they must impress and inspire people over generations. As societies live with archi-
tectural masterworks for long periods, the architecture itself becomes a part of their history,
helping to define what it means for a society to flourish. Established in 1947, Kukdong E&C is an
integrated construction company with a broad record of accomplishment. For more than sixty
years, we have been working on ever more advanced construction projects that bring a bright
and prosperous future closer to reality. Society’s development can be tracked by the effort ex-
pended by Kukdong E&C. The facilities created by Kukdong E&C have become the spaces where
we work, play and live. They form a background for our history. As we look forward to a new era,
Kukdong E&C is prepared to meet its challenges with competitive technologies and a wealth
of accumulated experience. We are evolving into a world-class construction company with the
ability to shape a wonderful future. We will never waver from our vision and purpose. We are
creating an impressive legacy that will persist for ages to come, growing in value and contrib-
uting to society’s well-being. We invite you to meet the future together with one of the world’s
most creative and compassionate construction companies, Kukdong E&C.
Construction Period 1971.03-1978.10
Scale Total Length 82km, 4 lanes
 The road
to
Prosperity
Kukdong E&C played a leading role in building
Korea’s most important transportation artery.
Intercity expressways are the life-support system of a nation,
bringing people, goods and materials where they need to be.
They are essential for economic development. With a total length
of 428km, the Seoul-Busan Expressway has made Korea
into a single, integrated national economy, and is itself
a prized symbol of economic development.

seoul-busan
expressway
.
.
Known for having the highest level of road
construction capability, Kukdong E&C was in
charge of paving an 82km stretch of the Seoul-
Busan Expressway, as well as bridges and
other facilities required by the nation’s main
transportation artery.
Reaching
for
tomorrow
We strive endlessly to go beyond our limits.
We operate at the extremes of human potential.
Skyscrapers represent the most advanced state of modern construction
technology, and the Petronas Twin Towers in Kuala Lumpur are two of the world’s
grandest skyscrapers. Soaring to 446 meters, with 88 floors above ground
and 6 below, the Towers were once the world’s tallest buildings. Representative
of Malaysia’s rising economic importance, the Petronas Twin Towers are a
favorite destination of tourists, shoppers and businesspeople.

Location Kuala Lumpur, Malaysia

Construction Period 1994.03-1997.05
Scale Total Floor Area 14,267.13 m2
88 stories above ground and 6 stories below.
Petronas Twin Towers
.
.
.
Comprising a total of 16 buildings, the Petro-
nas Twin Towers complex is Malaysia’s largest
ever construction project. Owing to its previous
experience with skyscraper projects, Kukdong
E&C joined the project as a joint venture part-
ner and successfully completed one of the
world’s tallest buildings.
a Roof
over
the world
Our architecture incorporates culture into functionality.
The arena is filled with the clamor of wild sports fans.
Soccer is a shared language, joining the world together in a common passion.
The curve of the roof of Daegu World Cup Stadium is based on the shape
of traditional Korean homes. It expands the indoor space, making a comfortable
environment for players and fans. As a host city of the 2002 World Cup,
Daegu benefitted from a world-class stadium that is grand enough to house the passion
and dreams of the world’s greatest sports tournament.

Location Daegu, Korea

Construction Period 1996.12-1999.06
Scale Total Size 141,859.54 m2
3 stories above ground and 3 stories below
Daegu
World Cup Stadium
.
.
At the time of its construction, the 65,857-seat
Daegu World Cup Stadium was the largest
in Korea. The stadium optimizes the flow of
people and traffic, and features a Teflon-
coated roof that lets in natural light to create
a more comfortable environment for watching
the world’s most exciting game.
Location Seoul Gangseo Banghwa-Gyeonggi Goyang Gangmae
Construction Period 1995.12-2000.11
Scale Total Length 2,643m (bridge 2,559m, civil works 75m), 7 lanes
Banghwa bridge-Total Length 2,559m, Maximum Span Length 180m, Width 27,8m (6 lanes)
 There's value, and then there's VALUE.
Every great architectual work must have aesthetic value.
The Incheon International Airport Expressway connects
to Seoul via the Banghwa Bridge, a center-arch truss bridge
with steel box girders at its junctures. Spanning 2,559 meters,
Banghwa Bridge is designed like an airplane taking off,
its red lights evoking the beauty of high-tech flight.
Among all 27 bridges crossing the Han River,
Banghwa is the most beautiful.

Banghwa bridge
.
.
.
The first domestic civil engineering work of its
kind, the bridge was made using the well wall
foundation method. Its foundations rest 40m below
the water in 20m of sediment. Above water, steel
and iron pile constuction methods were used.
The Hub
of
Growth
We build landmarks to admire forever.
Humankind uses architecture to embody its hopes and dreams for the future.
The Korea World Trade Center, built as a focal point of the nation’s globalization drive,
is Seoul’s premier world-class office tower. Encased in a glimmering mirror
and aluminum exterior, the tower has an eastern wall that climbs skyward in a series
of gigantic steps. Housing everything required by international businesses,
the Center is a Seoul landmark.

Location Seoul, Korea

Construction Period 1985.05-1989.03
Scale Total Floor Area: 106,688.00m2
54 stories above ground and 2 stories below
korea
world trade center
.
.
The construction of the Korea World Trade Center
began even before the full building design was
completed. Using advanced methods, Kukdong
E&C was able to complete the project in 40 months
by working in stages to build parts of the tower
while other sections were still being designed.
 Received Industry Award from Cambodian Government; Construction of Residential Complex, Vietnam

Joined Woongjin Group, acquired certification of New Technology

Rehabilitation of Cambodia’s Kampot-Trapang Ropaou Road

Received turnkey order for Jungang Railroad’s Carriage Base

Received Industry Award (Wide-Range Water Supply for Capital Region)

Received 10th Construction Award (Daegu World Cup Stadium)

Expansion of train station buildings on Gyeongbu Railway

2000 2001 2002 2003 2004 2007 2008

Acquired ISO 14001 certification

Construction of Daegu World Cup Stadium

Acquired ISO 9001 certification

Construction of Petronas Twin Towers, Malaysia

1994 1995 1996 1997

Construction of Jungang Expressway
Construction of Office Complex of Korea Complex Trade Center
Dhahran Medical Center, Saudi Arabia
Construction of Albatin Military Hospital, Saudi Arabia

1981 1985 1989

Construction of Seoul City Subway Line No.1
Received Stone Pagoda Industry Award
for work on Seoul-Busan Expressway
1970 1971
Construction of Seoul-Busan Expressway

1969
Name changed to Kukdong E&C

1953
Company established

1947

The history of Kukdong E&C is the history of Korea’s economic development.

We are an integrated construction company with a reputation built on 60 years of successful opera-
tion. Since our establishment in 1947, Kukdong E&C has been a core member of Korea’s engineer-
ing and construction industry. We are one of the country’s Top 5 E&C firms, and were active in the
1970s as a high-tech leader during the country’s initial rise as a developed nation. We took an ac-
tive role in the international arena by building a lasting overseas network and participating in major
social infrastructure projects in countries such as Taiwan, Saudi Arabia, Indonesia and Malaysia.
Emerging successfully from the Asian currency crisis of 1997-98, Kukdong E&C has recaptured its
position as a major player in the construction industry. In 2007, we became an affiliate of Woongjin
Group, giving us the strength and stability to compete effectively in global markets, and look to the
future with renewed optimism.
Kukdong E&C is taking on the challenge of creating
an enlightened industrial culture.

We are rising to meet the challenges of the globalization era.

Technology never reaches a pinnacle. Rather, it continually
grows and evolves as people apply their creativity and innovative ideas
to improve its power. As technology provides new capabilities,
companies must evolve and take advantage of the new opportunities
available to them. This is what Kukdong E&C has been doing
throughout its 60-year history, making change and innovation hallmarks
of our company culture. To prepare for future market needs,
Kukdong E&C is researching environmentally friendly-sound technologies
and engineering methods, and working to find ways to produce
clean and efficient energy.

Technologies A new foundation The challenges

A key industry
that protect for industrial of the
of the future
the environment development globalization era

12 | 13
 -Building the future with new recycled energy

“ The hope for a bright future

begins with careful preparation.

Kukdong E&C is reinforcing

-Preserving our environment
with sustainable technologies
its foundation in construction,

and preparing to take the lead

and create new value in future

industries like energy,

industrial plants and

environmental businesses.
”
 -Committed to a green and healthy future

-Managing water resources; the origin of life

Energy is a key industry of the future.

Energy is what drives society; it is a core business that is poised for a new era of expansion.
As fossil fuels become more precious and their supply more uncertain, Kukdong E&C is
investing in efforts to expand into alternative energy businesses. Our sister companies in the
Woongjin Group are working together in close cooperation to develop leading photovoltaic
technologies. Woongjin Group possesses world-leading production systems for ingots, a core
raw material of solar batteries. Kukdong E&C is applying this expertise to its own research
efforts in solar power generation, which will one day help to reduce global warming and fulfill
the promise of a green and healthy future.

We develop technologies that protect the environment.

Our survival is wholly dependent on the health of our natural environment. Even though people
in modern societies continuously seek to improve their standard of living, they have come
to realize that environmental protection is more important than anything else. The members
of the Woongjin Group have made a strategic choice to focus on environmentally-friendly
industries, and in particular, water and natural resources. Kukdong E&C is actively developing
plans for its own strategic shift toward environmental businesses. Our areas of focus include
desalination, deep subterranean water extraction and high-purity treatment facilities, as well
as water purification and treatment, water supply and recycling.

14 | 15
 -Setting a good example for the next generation

­­-Safe and efficient industrial plants

We are laying a new foundation for industrial development.

Industrial plants are a valuable and necessary component of modern social
infrastructure. They are core economic elements and they provide much of the richness
of modern life. Kukdong E&C is meeting the demands of modern industry
by acquiring the technologies to produce safe and efficient industrial plants with
reduced time and costs.

Kukdong E&C is building on a fine tradition of quality.

We cultivate a future-oriented corporate culture that thrives on challenge.
Kukdong E&C creates value by focusing on its core strengths. Our near-term plan
is to achieve annual growth of 30% in our core areas of residential and civil
construction, and to reinforce our premium business lines in town houses and
new brand apartments.

We are opening the door to a larger world.

In the open global markets of today, companies face both heated competition and
limitless opportunity. In a global market where people from all countries mingle and trade
with one another, Kukdong E&C has developed the competitive skills, technology and core
capabilities to promise a top-quality outcome on any international project.
 -Strengthened competitiveness for a brighter future

-Specialists in creating affluent lifestyles

“ The hope for a bright future

begins with careful preparation.

Kukdong E&C is reinforcing

its foundation in construction,

and preparing to take the lead

and create new value in future

industries like energy, industrial

plants and environmental

businesses.
”
16 | 17
A new era is opening to reveal endless opportunities.

Construction has played an important role throughout human history. Civil engineering is nothing less than the management
of nature itself, and societies have been transformed by it. Plants and factories are the centers of mass production and the
symbols of industrialization’s progress. A new era in construction is opening up, as people look beyond the earth and target the
heavens for their explorations.
Kukdong E&C has been at the center of Korea’s construction industry throughout this nation’s period of rapid industrialization
and economic growth. Our company has served the country’s development needs since 1947, completing projects in the areas
of civil engineering, architecture, housing, industrial plants, telecommunications and electricity. Our overseas works have raised
the profile of Korean industry abroad. These achievements have been possible because of our company’s confidence, drive and
dedication to quality.
Kukdong E&C is now embarking on a new era. We joined the Woongjin Group, and are adopting transformative management
strategies and ideas. We are being reborn as a young company in a new century. Going forward, our continuing success will be
underpinned by the dual strengths of our accumulated experience in the construction business, and the creative energy of the
Woongjin Group.
Our corporate philosophy is based upon caring for our work, for society, for our customers and our coworkers. We put envi-
ronmental best practices into action, focusing on creating a prosperous future for society instead of concerning ourselves with
short-term competitions. Our forward-thinking management is guided by three key policies.

First, maximize corporate value. Kukdong E&C is fostering a corporate culture that focuses on working together to create
value. Our unique strengths developed over our 60-year history are being reinvigorated by the dynamic, future-oriented spirit of
Woongjin Group, inspiring all of us to meet every challenge with confidence.
Second, implement transparent management. Kukdong E&C will be a respected blue chip company that earns the trust of our
customers and society. We will practice sustainable management and share information with our customers on the basis of
ethical corporate conduct, and establish a win-win relationship between labor and management.
Third, develop and nurture top-quality human resources. Our most important asset is our human capital. Kukdong E&C will
safeguard its future by recruiting and training an elite workforce that will be the company’s key competitive advantage.

I have set an objective of 30% annual growth until 2010 for Kukdong E&C. I believe this is achievable, given our company’s dem-
onstrated record of creativity, innovation and dominating spirit. To make Kukdong E&C a world-class brand in the construction
industry, we are reinforcing our civil engineering business and directing more resources toward water treatment and renew-
able energy as next-generation growth engines. Focusing on Central and Southeast Asia as future strongholds, we will expand
our overseas construction business and establish branches in foreign countries. In cooperation with affiliated companies in the
Woongjin Group, we are entering the era of globalization with new business opportunities for new markets, and implementing
management tools to improve our communications and workflow.
The future will take shape based on the dreams we form today. We dream of a world that provides a beautiful home for people
everywhere; a world where people live in comfort and prosperity. Kukdong E&C is fully committed to bringing joy to its custom-
ers, and earning their respect as a builder of historic landmarks.

CEO YOON, CHOUN-HO

18 | 19
the innovation
in engineering
methods
and technology
Research and development is the main source of competitive advantage for cutting-edge companies that achieve growth through new
value creation. Kukdong E&C has an active R&D wing that is focused on finding new technologies and methods to solve real-world
problems efficiently and effectively. Each new innovation combines with existing knowledge to make engineering projects proceed
faster, safer and cheaper, and to improve the overall finished quality of construction works.
Economical concrete hardening method,
PF/R engineering method
Process Flowchart
Kukdong technology hardens concrete quickly and economically.
The PF/R(Prefab Fom / Rebar) engineering method is a form-
Plant fabrication
work and non-support type method for quickly and easily
hardening concrete. Iron reinforcement rods and forms, -Lattice cutting
and bending
which are used in slab and wall structures, are prefabricated
with a bolted iron truss, and the prefab is then delivered to
the worksite. The concrete is hardened without requiring - Slab fabrication
additional structures to be built. This makes it possible to
actually use factory automation as a construction tool, and
thereby develop new types of structures, optimize resources
On-site fabrication
and more easily correct dislocations.
- Adding weights
Unlike previous methods in which construction work was
performed entirely at the worksite, form fabrication and rein-
forcement rod processing steps can be completed at a facto-
- Construction of
ry, so that only the prefab structure needs to be built on-site. non-column slab
molding cast
Construction quality control is thereby improved and the pace
of work at the site can be quickened. The PF/R method is also
markedly safer and cheaper, due to the standardization that
factory production allows.

Cost Savings vs. Former Method

100%
73.8%
Existing tech(slab): Construction period comparison
26%
savings 2.7 days
PF/R Slab 3.3 days
saved
6 days
High Form Tech
High Form Tech PF/R Slab

Applications
Kukdong E&C has been using the
PF/R engineering method to complete
slabs for commercial and residential
projects in Seoul and Busan, achieving
significant reductions in construction
time and cost. Developed by Kukdong
E&C, PR/R has gained industry-wide
recognition as a superior engineering
method, and is being applied to an
ever-growing number of job sites.

Dogok Combined Complex
Construction Period 2004.9-2007.3
Scale Total Area 34,046.58m2
1 complex, 96 households
7 stories below ground
20 stories above ground
Songpa Sincheondong Busan Myeongji Kukdong Apartment Garakdong Combined Complex
Multi-Complex Building Construction Period 2006.2 - 2008.11 Construction Period 2005.7 - 2007.10
Construction Period 2005.4 - 2007.5 Scale Total Area 187,292.33m2 Scale Total Area 16,403.39m2
Scale Total Area 50,309.28m2 21 complexes, 1,124 households 1 complex
5 stories below ground 1 story below ground 7 stories below ground
10 stories above ground 15 stories above ground 19 stories above ground
 connect point
connect point

lattice
connect point

connect point

connect point

connect point

22 | 23
Advanced Tunnel Construction Technique, Shield TBM

Safe and environmentally-friendly tunnel boring method. Excavation Process

The Shield TBM(Tunnel Boring Machine) engineering method
Shield construction steps(soil)
enables the safe and efficient construction of tunnels. Using a
Drilling
cylindrical shield to protect the tunneling machine from cave-ins, preparation
the tunnel interior is stabilized and worker safety enhanced. The
cutter head of the TBM digs out the tunnel while complementary
Drilling
methods, such as injection of compressed air and compressed
liquid, act to prevent tunnel collapse. Except for perpendicular
sections, most of the work is performed underground, thereby
Segment
giving workers less exposure to potentially damaging noise and fabrication
vibration.
The method has been applied to urban infrastructure works such
Drilling
as subways and the laying of electrical and telecommunications preparation

lines. It is especially effective in soft, clayey ground. The Shield

TBM technique helps minimize noise, tremors and traffic inter-
ruptions in crowded urban areas, compared with excavation
methods. In the case of underwater tunnels, the technique pro- TBM construction steps(rock)
vides a clearly preferable work environment. Drilling
preparation

Total Process Graphic

Drilling

Reset

Segment
fabrication

Applications
To build the Dongjak Telecom Station,
a riverbed telecom facility located
beneath Seoul’s Han River, Kukdong
E&C used the EPB (Earth Pressure
Balance) Shield TBM method, suc-
cessfully completing construction of
the tunnel. An 8 meter-long cylindri-
cal iron shield was used, with aqua-
dilating waterstops helping to prevent
water infiltration. The same method is
now being applied to the construction
of the next such station in the Seoul
area.
Riverbed Telecom Substation
Construction Period 2002.1-2005.4
Scale SHIELD TBM TUNNEL(D:2,200) Single perpendicular extension L=1,914.9m
MICRO SHIELD TUNNEL(D:2,000) Single perpendicular extension L=290.835m
24 | 25
World’s first TGV Rail Bridge,
PSC Box Girder Bridge + Concrete Arch Bridge
Process Flowchart
Quick and efficient construction of TGV rail bridge.
Bridge base and main body
High-speed TGV trains routinely travel at speeds over 300 km/h,
and they therefore have special track and bridge requirements.
Kukdong E&C is the first company in the world to apply a PSC
Section main arch and wall
Box Girder + Concrete Arch design to a TGV rail bridge, which can
be efficiently applied to a seamless branching-off system. This
new bridge engineering system was especially designed for high-
speed rail applications, and provides particular safety, stability
and ease of maintenance, while also being quick and economical
to implement.
Bridge Wall

Structured System
Fixed Arch Structure
Weight of upper deck transferred downward through small arches and columns(wall)
Upper wall

Upper PSC BOX

-Upper slab weight is transferred to lower arch, preventing overall deformation

-Continuous filling of fixed arches in lower section reduces horizontal deformation Interval Extension upper wall
and arch pressure(offsets horizontal moment)

Hardening

Small Arch Structure

-Multi-leg upper structure is realized

-Multiple small arches reinforce bridge’s horizontal strength
→ Horizontal resistance to deformation by train weight is improved

Applications
Kukdong E&C strives to comply fully
with change-orders that arise in the
course of construction projects. As
construction plans at the Junggwae
Overpass of the Gyeongbu High-speed
Railway were revised, we proposed
the world’s first PSC Box Girder +
Concrete Arch Bridge for TGV Rail.
The 532 meter span was successfully
completed and trains have logged
years of successful operation, showing
that Kukdong E&C has the profes-
sional competence to respond flexibly
to changing conditions.
Gyeongbu High-speed Railway Construction Site
Construction Period 2005.4-2008.12
Scale Total Length 5.7km, Bridge 1,595m, Tunnel 1,885m
26 | 27
EXT-PILE engineering method produces
high quality foundations
Process Flowchart
Latest technique integrates the foundation with the building.
Supporting
The EXT-Pile method adds strength to PHC piles by attaching iron works
a steel reinforcing plate to act as a cornerstone. This increas-
es the butt area of the pile, and its supporting power is there-
fore improved over existing PHC piles, creating a more stable Iron works
foundation for buildings. With this new method, expansion completion

plates are easily added on-the-spot to the pile butt, with con-
struction proceeding smoothly through the foundation stage.
Compared with previous methods, EXT-Pile incurs significant Ext-Pile
fabrication
savings on materials: 15% less rebar and concrete is needed
and fewer piles are required to build a foundation of the same
strength. It is also an environmentally-friendly construction
method that shortens the construction period by up to 30% Pile
placement
and reduces the need for subsequent reinforcement works.
ground

Existing Pile EXT cost comparison Pile

ground
insertion

Pile construction cost Base construction cost

100% 100% External weight

Subsistence
checking
83.5%
74.2%
23.5%
savings

Based on total construction cost

General PHC Pile

EXT-PHC Pile

Existing pile EXT pile construction period comparison

54 days
EXT-PHC Pile 19 days
saved
73 days
General PHC Pile

Applications
Having developed the EXT-Pile method
for foundation construction, Kukdong
E&C has actively applied this time-
saving technique to its work on the
Bucheon Gym Cultural Center, Ulsan
Sincheon Apartments, and other sites.
Thanks to the method’s time and cost
savings, as well as noise reduction,
other companies have applied it to
their own works at Gaebong I-Park
and Doosan We’ve apartments.

Bucheon Gym/Cultural Facility Ulsan Sincheon Kukdong Apartment Busan Singoejeong Cheonan Agriculutral Runoff Processing Center
Construction Period 2005.3-2006.12 Construction Period 2004.11-2007.5 Kukdong Apartment Construction Period 2008.3-2009.10
Scale Total Area 90,644.8m2 Scale 11 complexes, 960 households Construction Period 2005.3-2007.4 Scale Capacity 120 tons/day
3 stories below ground 2 stories below ground Scale 8 complexes, 470 households (Purification process 90 tons/day, Recycling process 30 tons/day)
4 stories above ground 23 stories above ground 2 stories below ground Total Area 1,802m2, 1 story below ground, 2 stories above ground
25 stories above ground
28 | 29
B U S I N E S S
O v e r v i e w
 CIVIL works

BUILDING works

PLANT works

The power of constant innovation is the source of Kukdong E&C’s competitiveness

Kukdong E&C is an expert in all fields of construction. Our civil engineering works have aided re-
gional development, our architectural projects have renewed cityscapes with modern designs, and
our residential housing developments have provided comfortable homes for tens of thousands of
families. We build plants to serve local industry and various facilities for the electronics, telecom-
munications and environmental sectors. For over 60 years Kukdong E&C has been developing as a
competitive and innovative full-service construction company that faces each new challenge with
excitement and an endless drive to be the best.

30 | 31
 CIVIL
WORKS
Working with Nature to improve human life
Civil engineering is humankind’s most ancient
community pursuit. Its creations form the basis
of human civilization, and Kukdong E&C has been
a part of that proud legacy for over 60 years.
Working with the latest technologies to ensure
optimal and safe construction operations,
Kukdong E&C is creating spaces where people
and nature can coexist and benefit each other.

BUSINESS AREA
-Roads, Expressways
-Bridges
-Railroads, Subways
-Water Supply and Sewage
-Ports, Seawalls, Dams
-Site Preparation
-Golf Courses, Air Fields, Telecom & Power Supply Nodes

MAJOR performance

Gyeongbu High-speed Railway(Lot.13-2), Korea 2005.04 - 2008.12

West Seaside Expressway(Lot.7), Korea 1993.12 - 1996.12
Busan Myeongji Residential Complex Development(Lot.2), Korea 1993.08 - 2000.12
Honam Expressway 4 Lanes Extension, Korea 1983.04 - 1985.08
Seoul Metropolitan Water Supply Line Facilities(Phase 1~5), Korea 1973.05 - 1998.04
Seoul Subway Line No. 1~5, Korea 1971.04 - 1997.02
Seoul-Busan Expressway, Korea 1971.03 - 1978.10
Asan Bay Sea Wall & Drainage Sluice, Korea 1971.03 - 1973.06
Ulsan Industrial Water Supply Line Facilities(Phase 1-2), Korea 1970.01 - 1994.11
Breakwater Faciliities at Pohang New Port, Korea 1968.07 - 1973.12
Banghwa Bridge

32 | 33
01
Kukdong E&C has played a leading role in Korea’s economic
development through our participation in numerous social in-
frastructure projects, including expressways, roads, railways,
subways, water and sewer facilities, Ports, seawalls and dams,
industrial complexes and housing complexes. Kukdong E&C also
has abundant experience with airfields, telecommunications
nodes and power supply installations, and leisure facilities such
as golf courses. With our rich experience in the management
and execution of complex construction projects, Kukdong E&C is
raising the competitiveness of the national industry and improv-
ing people’s quality of life.

Raising ourselves to meet global standards in all our activities,

Kukdong E&C is known worldwide as a top-quality construction
firm. Based on our long history and extensive experience, we
have been able to extend our operations to Saudi Arabia, Dubai
and the UAE, and to Indonesia, Malaysia and Vietnam. Our strong
reputation for technical competence, efficient operation and
02
quality construction results will continue to drive the global ex-
pansion of Kukdong E&C.

03

04

05
Roads, Expressways | We create valuable social infrastructure.
A nation’s roads and expressways are the lifeblood of its econo-
my. Kukdong E&C has a long and proud history of work on many
important road projects that connect city to city and people to
people. In addition to the Seoul-Busan Expressway, Korea’s main
transnational artery, we have aided the development of industries
and regions through our contributions to the Honam Expressway 06
and the Central Expressway. Our high-quality work on these pri-
mary national roads led to our acceptance as contractors on simi-
lar projects in Saudi Arabia, Indonesia, Vietnam and Cambodia.

Bridges | Applying the most advanced construction technologies.

Bridges are demanding structures to build; they require a high de-
gree of design and construction capability. Kukdong E&C built the
Banghwa Bridge component of the Incheon International Airport
Expressway, a major civil infrastructure project. Also, applying
the slip-form method for the first time in Korea, we completed the
Wongju Bridge on the Central Expressway.

Railroads, Subways | We aim for perfect execution of every con-

struction work.
Safe, fast and efficient railroads are an essential component of
any integrated transportation and logistics network. They pro-
mote the development of cities, countrysides and industries.
Kukdong E&C participated in the building of Korea’s Chungbuk
Railroad and Gyeongbu High-speed Railway. In the urban pas- 07
senger rail area, we have worked on Seoul’s Line 1 and Line 5
subway lines, the Gwacheon Line, and on Daegu City’s Line 1 and
Line 2 subways.

01 Ganghwa Sangha District Cultivation Land, Korea

02 Seoul Subway Line No.5(Lot.5-22), Korea
03 Ulsan Industrial Water Supply Line Facilities(Phase 1-2), Korea
04 Expansion of Honam Highway 4 lanes Extension, Korea
05 Seoul Metropolitan Water Supply Line Facilities(Phase 1~5), Korea
06 P-J Road, Indonesia 08
07 Gyeongbu High-speed Railway(Lot.13-2), Korea
08 Commercial Port of Jubail, Saudi Arabia
09 Breakwater Facilities at Pohang New Port, Korea

09
34 | 35
 01

02

Water Supply and Sewage | We help municipalities use their water resources more efficiently.
Water is essential for everything people do. It is not just a nutrient for our bodies - it is also a neces-
sary resource for our industries. Kukdong E&C has completed many water supply and sewage facili-
ties to ensure the delivery of safe, clean water to homes and factories. Examples of our work include
the Ulsan Aqueduct Project on the Nakdong River, the Gwangam Purification Plant at Paldang Res-
ervoir, which is the largest in East Asia, and the Seoul Water Supply Project Phases 1 to 5. Through
these and other activities we have gained broad experience in intake, storage, purification, drainage
and supply of water, as well as specialized construction of large, special-purpose facilities.

Ports, Seawalls, Dams | We harness the power of Nature.

Kukdong E&C is the best construction partner for specialized jobs like dams, seawalls and ports, all
of which require advanced design and technical capabilities. We constructed Korea’s first and larg-
est port, Busan Port, as well as Ulsan Port and the East Coast’s largest trading port, Mukho Port. In
the construction of the Asan Bay and Namyang Bay seawalls, we applied both Mattress and Gabion
engineering methods, overcoming extremely challenging conditions to complete infrastructures that
greatly improved the local economies. Kukdong E&C continues to acquire new and effective tech-
nologies that help us to overcome Nature’s most significant obstacles.

11 Wastewater Treatment

05

03 04 06
 Wastewater Treatment

08

07

Site Preparation | Building a foundation for growth.

Comfortable and attractive housing is the foundation of a city’s growth and vitality. Understanding
the importance of high-quality housing, Kukdong E&C has finished many urban residential develop-
ments, including Busan City’s Myeongji Land Development Project, Seongnam City’s Bundang Dis-
trict Housing Development Project and Siheung City’s Yeonseong District Land Development Project.
We have also promoted agricultural modernization with our work on the 20-year Gangwha District
Agricultural Project and the Farmland Upgrading Project, which focuses on effective water manage-
ment during drought and flood conditions.

Golf Courses, Air Fields, Telecom & Power Supply Nodes | We are enhancing people’s quality of life.
Social infrastructure makes life more comfortable, convenient and productive, boosting economic
activity and spreading the benefits of regional development. Based on its advanced design and engi-
neering capabilities, and the skills of its talented professionals in high-tech fields, Kukdong E&C has
built the Jincheon and Ulsan Golf Courses, the Osan and Gunsan Airfields and other military construc-
tions, and telecommunications nodes and power supply facilities to improve levels of public service.

01 Jungbu Expressway, Korea 02 Breakwater at Mukho Port, Korea 03 Lane expansion on Jungang Expressway, Korea
04 Namji-Yeongsan National Road 4 Lanes Extension, Korea 05 Busan Myeongji Residential Complex Development, Korea
06 Jincheon Golf Course, Korea 07 Osan Airfield, Korea 08 Daegu Subway Line 2, Korea
09 Jakarta High-level Road No.1, No.3, Indonesia 10 Container Crane at Busan Port, Korea
11 Pier Facility at Busan New Port, Korea 12 Asan Bay Seawall and Water Distribution Facilities, Korea

11

09 10 12

36 | 37
 BUSINESS AREA

-Office Buildings, Commercial Facilities

-Schools, Hospitals & Public Facilities
-Apartments, Officetels, Combined Complexes
-Town Houses, Villas

MAJOR performance

Yongin Jukjeon Villa(Phase 1), Korea 2006.09 - 2007.10

Busan Myeongji Kukdong Apartment, Korea 2006.02 - 2008.11
Woongjin Think Big Paju Office Building, Korea 2005.04 - 2007.02
Bucheon Gym/Cultural Facilities, Korea 2005.03 - 2006.12
Daegu World Cup Stadium, Korea 1996.12 - 1999.06
Petronas Twin Towers, Kuala Lumpur, Malaysia 1994.03 - 1997.05
Korea World Trade Center Office Building, Korea 1985.05 - 1989.03
Medical Center, Dhahran, Saudi Arabia 1981.01 - 1985.10
Ministry of Foreign Affairs Staff Housing, Saudi Arabia 1980.05 - 1984.10
Kukdong Building, Korea 1977.02 - 1978. 07

BUILDING
WORKS
Kukdong E&C’s creative designs are defining
a new architectural paradigm.
Modern urban citizens demand an architectural environment
that satisfies their need for convenient and safe living,
while also providing high-tech solutions and creative touches
that make each structure unique. Kukdong E&C has a long
history of innovation in the areas of skyscraper
and housing block construction. With each generation,
we have made leaps in terms of environmental conservation,
beauty, function and comfort.
Malaysia Kuala Lumpur Petronas Twin Towers

38 | 39
01
People fundamentally need to live in close proximity with one an-
other, as members of a human community. Modern cities need to
address our human needs by achieving a balance of beauty and
function. Towering skyscrapers, intelligent buildings and high-
value-added buildings are just some of the modern areas where
Kukdong E&C has built lasting landmarks. We are active partners
with governments to create planned cities, including participating in
civic investment projects and BTL (build-transfer-lease) projects.

Kukdong E&C is shaping the future in Vietnam, participating in

mega-scale New Town developments in Hanoi, and residential proj-
ects and an international school in Binh Duong Province. Beginning
with our first ‘Kukdong Apartment’ complex in Seoul in 1975, Kuk-
dong E&C has gone on to build more than 50,000 apartments at 130
locations. We are leading the advancement of urban culture with
living spaces that meet the demands of new lifestyle trends.

Kukdong E&C serves its clients by building apartments, officetels,

02 combined residential and commercial complexes and townhouses
that satisfy modern architectural and cultural ideals.

03

04

05
Office Buildings, Commercial Facilities
| We are working to create a New City.
Various types of buildings and structures are required to serve the
needs of large cities. Kukdong E&C understands the needs of city
planners and residents, and brings a fresh perspective to the build-
ing of modern, high-tech urban landmarks that are representative
of each city’s character. Fully competent with office and commercial 06
structures, such as the Korea World Trade Center and the Petronas
Twin Towers, we have demonstrated the highest level of technol-
ogy and engineering capability. As skyscrapers reach higher and
construction conditions become more difficult, highly advanced
engineering methods and project management skills are needed, as
well as sophisticated safety systems. Kukdong E&C thrives on these
challenges, and consistently completes complex projects quickly,
economically and to the highest quality standards. We meet our cli-
ents’ demand for architectural designs that will withstand the pas-
sage of time, building structures that merge function and beauty to
create truly inspiring human environments.

Schools, Hospitals & Public Facilities | We think of people first.

07
Kukdong E&C knows that the most important feature of architecture
is the people who use and experience it. When we build public facili-
ties, such as schools, hospitals and community centers, we focus
on how these facilities can best serve the needs of local citizens. We
have constructed many landmark buildings that are appreciated and
loved by the people around them: Daegu World Cup Stadium won in-
ternational recognition for its beautiful design and high functionality;
Dankook University’s Nanpa Memorial Music Hall, Toegye Memo-
rial Central Library and University Hospital were built with modern
amenities such as central vacuum systems and building automation
systems. We also built the Busan Station terminus of the Gyeongbu
High-speed Railway.

01 Bucheon Gym/Cultural Facility, Korea

02 Korea World Trade Center Office Building, Korea 08
03 Fraser Suites Serviced Residence, Korea
04 Central Bank of Saudi Arabia, Saudi Arabia
05 Daegu World Cup Stadium, Korea
06 Kukdong Building, Korea
07 Dankook University Medical School Hospital, Korea
08 Woongjin Think Big Paju Office Building, Korea
09 King Khalid Military Hospital, Saudi Arabia

09

40 | 41
01

02

Apartments | We build to give comfort and convenience.

People’s lives are profoundly influenced by the shape of the spaces in which they live. Kukdong E&C
strives for artisanship in the creation of carefully-designed, human-centered environments. Our goal is
to be the leader in creating advanced housing with customized designs that balance homeowners’ con-
venience with environmental consciousness. We have built many environmentally-friendly apartment
complexes, all of which feature uniquely luxurious interiors and convenience-enhancing features.

Combined Complexes, Officetels | Graceful cultural & commercial environments.

Kukdong E&C combined-purpose facilities improve neighborhoods and lifestyles. By balancing living
space, recreational space, cultural space and commercial facilities in the right proportions, Kukdong
E&C gives development a good reputation again.

11 Wastewater Treatment

04
03 05
Wastewater Treatment

07

06

Town Houses , Villas | We help people live beautiful lives.

People’s aspirations naturally rise higher as their society grows and develops. Through years of eco-
nomic growth, Kukdong E&C has built steadily more luxurious town houses and condominiums for pre-
mium customers, bringing new inspiration to a market saturated by repetitive offerings. We introduced
the Kukdong STARCLASS housing complex to Yongin City, launching a new form of high-end community
based around classical housing models. We have also developed housing facilities targeted at older de-
mographics, known locally as ‘silver towns’.

01 Dogokdong Combined Complex, Korea 02 Busan Station, Gyeongbu Railway, Korea

03 Kwangjang Kukdong Apartment, Korea 04 Yongin Jukjeon Villa(Phase 1), Korea
05 Hyeonjeo Kukdong Apartment, Korea 06 Ocean Tower at Haeundae, Korea
07 Seoul National University R&D Center, Korea 08 Ministry of Foreign Affairs Staff Housing, Saudi Arabia
09 Busan Myeongji Kukdong Apartment, Korea 10 Sadang Redevelopment Apartment(Lot.4-1), Korea

15 Wastewater Treatment

09

08 10

42 | 43
 PLANT
WORKS
& New business
We provide the driving force
for the development of industry.
By enabling mass production, the industrial revolution ushered
in an era of affluence undreamed of by previous generations.
However, it also led to environmental contamination on a scale
never before seen. When Kukdong E&C builds industrial production
facilities and environmental plants, we strive to create balanced
constructions that respect and protect the environment.
Kukdong E&C is aggressively expanding into new business fields,
including production of materials for photovoltaic cells,
a next-generation renewable energy technology.

BUSINESS AREA

-Chemical Engineering Plants

-Environmental Plants
-Renewable Energy
-Electricity & Telecommunications

MAJOR performance

Woongjin Energy Daedeok Factory, Korea 2007.01 - 2008.08

Cheolwon Province Livestock Waste Water Disposal Plant Facilities, Korea 1995.11 - 1998.07
Samcheonpo-New Gimhae 345kv Transmission Line, Korea 1995.01 - 1997.08
Busan Dadaepo Incinerator, Korea 1993.08 - 1995.08
Sanitary Waste Water Treatment Plant, Jubail, Saudi Arabia 1985.02 - 1989.10
Water & Sewage Treatment Plant
for King Fahd International Airport, Dhahran, Saudi Arabia 1984.08 - 1988.06
Daewoong Lily Pharmaceutical Factory, Korea 1983.07 - 1984.09
Housing Area "D" Electrical System, Riyadh ,Saudi Arabia 1983.01 - 1984.12
POSCO Steel Mill Plant, Korea 1969.08 - 1975.08
POSCO Steel Mill Plant

44 | 45
 There is a renaissance in overseas construction going on. Oil
01
wealth in the Middle East is funding massive investment in infra-
structure facilities such as petrochemical plants, oil refineries
and gas plants. Countries in Africa, Asia and Latin America are
again turning their attention toward exploration and exploitation
of their natural resources. Equipped with a strong organization
and decades of experience, Kukdong E&C will become a com-
plex construction company with a full range of competencies in
manufacturing, purchase, supply, construction and testing of
industrial plants.

As an affiliate of Woongjin Group, which is collectively orienting it-

self toward high-tech environmental businesses, Kukdong E&C is
pursuing an active R&D program to establish a firm foothold in new
business fields. In 2006 Woongjin Energy established a mass pro-
duction system for 200 cm ingots, a world-record length. Starting in
2010, Woongjin Silicon will begin mass production of polysilicon, a
basic material of photovoltaic cells. The synergies created through
the cooperation of Woongjin Group affiliates in this field will create
02
more than US$ 1 billion in value by 2011.

01 Sanitary Waste Water Treatment Plant, Jubail, Saudi Arabia

02 Youngnam Chemical Plant, Korea
03 Housing Area "D" Electrical System, Riyadh, Saudi Arabia
04 Busan Dadaepo Incinerator, Korea
05 Samcheonpo-New Gimhae 345KV Transmission Line, Korea
06 Woongjin Energy, Daedeok Factory, Korea
07 Jinro Factory, Korea
08 Daewoong Lily Pharmaceutical Factory, Korea
09 Water & Sewage Treatment Plant for King Fahd International Airport, Dhahran, Saudi Arabia

03

04

05
Chemical Engineering Plants | We unite professional construction ability
with high-level production technology.
Economic development is proceeding worldwide, driving demand for
plant infrastructure in various industries. Following the development
boom in the Middle East and Asia, BRIC countries are discovering the
need for massive numbers of industrial plants to support their continued
growth. The professionals at Kukdong E&C are experienced with plant
design, quality control and construction. The company has built chemical
06
engineering plants handling high-tech materials, such as the polysilicon
factory of Woongjin Polysilicon.

Environmental Plants | Creating facilities that keep the environment

clean and safe.
Building on its experience in waste treatment facilities such as water
purification plants, sewage treatment plants and agricultural runoff
treatment plants, Kukdong E&C is breaking new ground as a member
of Woongjin Group. We will build on the synergies with our fellow Group
members, such as Woongjin Chemical, the world’s fourth largest filter
producer, and Woongjin Coway, a major exporter of filter-based water
purification systems. Partnered with such capable allies, Kukdong E&C
will build a competitive edge in plant-scale water treatment facilities, in-
cluding desalination plants. We will push forward with our plans to enter
into desalination, deep subterranean water extraction, high-purity water,
water recycling, water supply and others.

Renewable Energy | We are exploring the future of energy.

In this era of record oil prices, customers are searching for alternative 07
and renewable energy sources to replace fossil fuels. Kukdong E&C
has targeted this promising area as a key driver of the company’s future
growth, and we are developing business models in fields such as solar
power generation and biodiesel. Together with our sister companies in
the Woongjin Group, we are focusing on photovoltaic cells and their ap-
plication to the power generation business. Woongjin members already
possess world-leading technology for the production of ingots and poly-
silicon, respectively the core component and core raw materials of photo
cells. By practicing ‘Selection & Concentration’ of our efforts, Kukdong
E&C will emerge as a leader in environmental plants, power plants and
high-tech energy production.

Electricity & Telecommunications | Applying advanced technologies to

interconnect the world.
Kukdong E&C’s projects in the areas of electricity and telecommunica-
08
tions have taken as a central focus the need to secure safe and efficient
transmission. We are an industry specialist in power transmission sys-
tems for subway lines, as well as in tower construction, and are active
participants in consortiums for many infrastructure projects. Our com-
pleted building electrification projects include the Korea World Trade
Center,Bucheon Water Purification Plant , Daegu Water Purification 09

Plant, and Mokpo Electric Train power cable.

46 | 47
Thinking
tomorrow
rather than
today
The sort of culture a company develops is shaped by the objectives the company pursues, and by the values it finds important. We be-
lieve that corporate culture is not trivial; rather, it profoundly affects the quality of products and a company’s identity. Kukdong E&C
makes every effort to create a healthy and transparent corporate culture, where corporate social responsibility is taken seriously, and
success is defined as growing together with our customers, partners and employees. In this way, we work every day to earn the trust
of society and our customers.
G R E E N
We use environmentally-friendly construction practices to ensure a healthy future.
Kukdong E&C is an active participant in Woongjin Group’s Vision and Shared

M ANAGE M EN T Values, which include Environmental Management as a core corporate mission.

We are committed to continual improvement of our work systems and increas-
ing investment in environmental protection.

Compliance with international agreements

Shared Value
of Environmental
Management
Customer satisfaction

VALUE TO ECOsystem

VALUE TO EARTH

VALUE TO CUSTOMER

VALUE TO SOCIETY
Practice respect for the environment
 Kukdong E&C acquired ISO 14001 Environmental Management Certifica-
tion in 1997 and operates an in-house EM Committee. The Committee
organizes various activities, such as waste cartridge collection, stop-
smoking campaigns, green purchasing initiatives and environmental
education activities.

Green purchasing

Contribute to environmental conservation

in international society

Development of environment-friendly products

Supportive mindset

Putting 3R into practice

(Reduce, Reuse, Recycle)

Global company
through new-green
management

VALUE TO EARTH
VALUE TO CUSTOMER
VALUE TO ECOsystem
VALUE TO SOCIETY

50 | 51
 love for customer
We are able to maintain our business and
reward our employees, all thanks to our customers.
Love for the customer is to think of
and care for the customer.

love for society

Love for society starts

from thinking 'ours' rather than 'mine'.
You love society by sharing what you
have with those who have less.

love for organization Love for challenge means challenging yourself

to make a better future. It is to continously
think of 'how to improve', and make the necessary
enhancements.
Love for organization is to love and accept those
with whom you are working. You love the organization
by giving positive input and praise to your team.
Be the one to open your mind first.
love for challenge

H u m an
Nurturing human talent and a healthy organizational culture.
High-quality human capital is the core of corporate competitiveness. Excellent

resources companies are supported by excellent workers who thrive in a culture that sup-
ports and inspires them. Kukdong E&C believes in the ambition, motivation,
creativity and intelligence of its workers.
 love for work
Your willingess to work with joy
makes a huge difference
in your performance capabilities.
Working pleasantly helps you take pride in and
get satisfaction from the work that you do.
Our philosophy is that love of work, challenge, customers and society will
naturally lead to excellent performance. We choose new recruits care-
fully and invest heavily in their training, so that our workers enjoy per-
sonal development along with the company’s growth.
love for change
Without change, one cannot be competitive.
Change is not a choice but a prerequisite
for the future.
Kukdong E&C people are....
Learning Professionals We foster specialists who produce
results based on a lifelong love of learning.
Working as a Team Kukdong E&C’s employees treat
each other as family, offering constant support and
encouragement to one another.
Inspiring Passion for Performance We train and support
positive-minded employees who overcome difficulties and realize
their career goals.
Innovative, Creative Employees We nurture a creative
workforce composed of people who pursue growth and
development by seeking out new learning experiences.
52 | 53
 Volunteer Group
The company’s Volunteer Group pays
periodic visits to social welfare facilities
to provide various forms of assistance
to our disadvantaged neighbors.

Kukdong Spirit irit

Kukdong Sp

Kukd
ong
Spir
it

Support for Cambodia’s Poor

Extending our CSR activities internationally,
Kukdong E&C dispatches volunteers to help
with development works in selected towns
in Cambodia.

s o c i a l
Working diligently to be a trusted and responsible company.
Kukdong E&C actively supports Woongjin Group’s philosophy of doing business

responsibilit y with a compassionate spirit. Our company strives to think of ‘we’ before ‘me’.
We use our company’s resources to contribute to society and take responsibility
for our actions as a corporate citizen through such programs as the company’s
volunteer organization.
 Protecting Ugu Stream
Kukdong E&C assists in Woongjin Group’s work
to rejuvenate Yugu Stream in Gongju City.
The stream was severely damaged by pollution
with raw sewage and agricultural runoff.

Multicultural Music
and Information Broadcasting
We deliver a full spectrum of music and life
information, 24 hours a day in four languages
(Chinese, Vietnamese, Tagalog and Thai),
providing immigrants with helpful programs
Kukdong Spirit
covering child-rearing, health, legal issues
and job searching.

Environmental Cleanup Activities

We respect nature as the mother of all life.
Kukdong E&C volunteers help to pick up
litter along nature trails and walking paths
in Korea.

We sponsor education scholarships for bright and needy students, pro-

vide welfare for disadvantaged persons, make gifts and donations to
charitable organizations, provide funding to support the arts and culture,
and ensure that our business activities are conducted in an environmen-
tally responsible manner.

54 | 55
financial
statements

57 financial highlights

58 Independent Auditors' Report

59 Balance Sheets

61 Statements of Income

62 Statements of Cash Flows

63 Statements of Changes in Equity

financial highlights (Units : USD Million)

2008 2007 2006

Total Sales 456 621 560

Total Assets 710 643 580

Operating Profit 7 40 38

Net Income 7 1 32

KRW/USD Exchange Rate, December 31, 2006: KRW 929.60/USD 1.00 | December 31, 2007 : KRW 938.20/USD 1.00 | December 31, 2008 : KRW 1257.50/USD 1.00
710
643
621

40
580

38
560

456

32

7
7

06 07 08 06 07 08 06 07 08 06 07 08
Total Sales Total Assets Operating Profit Net Income

56 | 57
Independent Auditors' Report

Based on a report originally issued in Korean

The Board of Directors and Stockholders

Kukdong Engineering & Construction Co., Ltd.:

We have audited the accompanying balance sheets of Kukdong Engineering & Construction Co., Ltd. (the “Company”) as of December 31, 2008
and 2007, and the related statements of income, appropriation of retained earnings, changes in equity and cash flows for the years then ended.
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the Republic of Korea. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Kukdong Engineering
& Construction Co., Ltd. as of December 31, 2008 and 2007, the results of its operations, the changes in its retained earnings, the changes in its
equity and its cash flows for the years then ended in conformity with accounting principles generally accepted in the Republic of Korea.

The accompanying financial statements as of and for the years ended December 31, 2008 and 2007 have been translated into United
States dollars solely for the convenience of the reader. We have audited the translation and, in our opinion, the financial statements
expressed in Korean Won have been translated into dollars on the basis set forth in note 3 to the financial statements.

Without qualifying our opinion, we draw attention to the following:

As discussed in note 2(a) to the financial statements, accounting principles and auditing standards and their application in practice vary among
countries. The accompanying financial statements are not intended to present the financial position, results of operations, changes in equity and
cash flows in accordance with accounting principles and practices generally accepted in countries other than the Republic of Korea. In addi-
tion, the procedures and practices utilized in the Republic of Korea to audit such financial statements may differ from those generally accepted
and applied in other countries. Accordingly, this report and the accompanying financial statements are for use by those knowledgeable
about Korean accounting principles and auditing standards and their application in practice.

As described in note 37 to the financial statements, the Company acquired Woongjin Construction Co., Ltd. and Woongjin Ceramics Co., Ltd.
(formerly, Kukdong Ceramics Co., Ltd.) on May 14th, 2008 following the declaration of the board of directors on February 28th, 2008.

Seoul, Korea
February 18, 2009

This report is effective as of February 18, 2009, the audit report date. Certain subsequent events or circumstances, which may occur between the audit report date and
the time of reading this report, could have a material impact on the accompanying financial statements and notes thereto. Accordingly, the readers of the audit report
should understand that there is a possibility that the above audit report may have to be revised to reflect the impact of such subsequent events or circumstances, if any.
Balance Sheets As of December 31, 2008 and 2007
(Units : USD Thousand)

Assets 2008 2007

Cash and cash equivalents 11,283 16,853

Short-term financial instruments 8,533 8,024
Available-for-sale securities 5 -
Accounts receivable - trade, net of allowance
for doubtful accounts
of \ 5,987 million (US$ 4,761 thousand) in 2008
and \ 2,460 million (US$ 1,956 thousand) in 2007 185,980 193,686

Other receivables, net of allowance
for doubtful accounts
of \ 47,013 million (US$ 17,386 thousand) in 2008
\ 6,058 million (US$ 4,817 thousand) in 2007 192,873 62,250

Inventories 89,469 39,474
Other current assets 13,744 2,342

Total current assets 501,887 322,629

Long-term financial instruments 10,364 1,420
Investment securities 40,812 39,671
Non-current investment 1,462 984
Property, plant and equipment.net 61,900 4,575
Intangible assets 1,113 903
Long-term accounts receivables - trade,
less allowance for doubtful accounts
of \ 433 million (US$ 344 thousand) in 2008 406 -
Long-term other receivables, net of allowance
for doubtful accounts
of \ 17 million (US$ 14 thousand) in 2008
and \ 17 million (US$ 14 thousand) in 2007 3,917 1,053
Deferred tax assets 12,831 13,334
Deposits provided 5,191 4,542
Sundry other non-current assets 70,202 90,935

Total non-current assets 208,198 157,417

Total assets 710,085 480,046

58 | 59
Balance Sheets As of December 31, 2008 and 2007
(Units : USD Thousand)

Liabilities and Stockholders' Equity 2008 2007

Liabilities
Accounts payable - trade 101,056 76,320
Other accounts payable 61,127 16,634
Short-term borrowings 164,880 90,501
Current portion of long-term debt 20,443 602
Other current liabilities 15,986 14,664

Total current liabilities 363,492 198,721

Long-term debt, excluding current portion 41,085 6,182
Provision for lawsuit losses 1,819 -
Reserve for construction warranty costs 14,769 10,046
Retirement and severance benefits 7,272 7,728
Long-term deposits received 317 1,266
Long-term accrual expenses 140 -

Total non-current liabilities 65,402 25,222

Total liabilities 428,894 223,943

Stockholders' equity :
Common stock and preferred stock of \ 5,000 par value:
Authorized - 40,000,000 shares
Issued and outstanding - 28,177,346 common shares 112,386 106,379
Issued and outstanding - 7,306 preferred shares 33 33
Capital surplus 87,803 66,884
Capital adjustments (899) (6)
Accumulated other comprehensive income 555 9,078
Retained earnings 81,313 73,735

Total stockholders' equity 281,191 256,103

Commitments and contingencies - -

Total liabilities and stockholders’ equity 710,085 480,046
Statements of Income For the years ended December 31, 2008 and 2007
(Units : USD Thousand)

2008 2007

Sales 456,362 463,510

Cost of sales 414,115 415,812
Gross profit 42,247 47,698

Selling, general and administrative expenses 34,399 17,616
Operating income 7,848 30,082

Interest income 14,064 8,805
Interest expense (13,010) (5,531)
Foreign currency translation gain, net 380 13
Foreign currency transaction loss, net (1) (13)
Equity in net income (loss) of equity method accounted investees 55 (14,923)
Bad debt expense-other (32,525) (2,052)
Loss on impairment of investments, net (8,032) (14,914)
Gain on sale of property, plant and equipment, net 46,472 8
Gain (loss) on sale of investments 439 (10)
Gain (loss) on sale of available-for-sale securities, net (501) 2,938
Donations (23) (25)
Other, net (819) 3,122
Other income (expense) 6,499 (22,582)

Income before income taxes 14,347 7,500
Income tax expense 6,769 6,456
Net income 7,578 1,044
Earnings per share of common stock in
Won and U.S. dollars 274 39

60 | 61
Statements of Cash Flows As of December 31, 2008 and 2007
(Units : USD Thousand)

2008 2007

Cash flows from operating activities:

Net income 7,578 1,044
Adjustments for depreciation 751 456
Amortization 320 241
Provision for construction warranty costs 6,433 4,483
Accrual for retirement and severance benefits 2,472 2,905
Bad debt expense 2,587 -
Bad debt expense-other 32,525 2,052
Equity in net loss (income) of equity method accounted investees (55) 14,923
Loss (gain) on sale of available-for-sale securities 500 (2,938)
Reversal of provision for available-for-sale securities losses (252) (1,060)
Loss on impairment of investments, net 8,032 14,914
Gain on sale of property, plant and equipment, net (46,472) (8)
Loss (gain) on sale of investments (439) 10
Foreign currency translation gain, net (426) (10)

Changes in assets and liabilities:

Accounts receivable - trade (43,827) 12,075
Other receivables (45,639) 27,462

Inventories (30,965) (36,498)

Other current assets (9,217) 909
Long-term trade receivables 100 2,814
Long-term other assets (2,865) 950
Deferred tax assets 3,850 (7,493)
Accounts payable - trade 21,828 (2,860)
Other accounts payable 43,993 1,019
Other current liabilities 1,796 (2,735)
Payment of retirement and severance benefit (2,958) (883)
Severance benefit deposit (1,596) 58
Construction warranty (1,938) (2,002)
Other, net (7,090) 1,014

Net cash provided by (used in) financing activities (60,974) 30,842

Statements of Cash Flows For the years ended December 31, 2008 and 2007
(Units : USD Thousand)

2008 2007

Cash flows from investing activities:

Decrease in short-term financial instrument 8,000 -
Decrease in long-term financial instrument 157 -
Proceeds from sale of investment securities 1,549 17,853
Decrease in short-term loans 26,519 16,223
Decrease in deposits provided - 908
Proceeds from sale of property, plant and equipment 5 3,533
Acquisition of short-term financial instruments (6,203) (8,000)
Acquisition of long-term financial instruments (8,796) (130)
Acquisition of investment securities (18,332) (17,764)
Increase in other receivables (83,289) (42,658)
Increase in deposits provided (448) (1,117)
Acquisition of property, plant and equipment (472) (302)
Others, net 22,003 (88,626)
Net cash used in investing activities (59,307) (120,080)

Cash flows from financing activities:

Proceeds from short-term borrowings 212,082 584,622
Proceeds from long-term borrowings 8,103 -
Proceeds from current portion of long-term debt 46,680 40
Repayment short-term borrowings (151,221) (521,404)
Repayment of long-term debt (40) (3,976)
Dividends paid (893) -
Net cash provided by financing activities 114,711 59,282

Net decrease in cash and cash equivalents (5,570) (29,956)

Cash and cash equivalents at beginning of year 16,853 46,809

Cash and cash equivalents at end of year 11,283 16,853

Statements of Changes in Equity For the year ended December 31, 2008 and 2007
(Units : USD Thousand)

Capital Capital Capital Accumulated other Retained Total

stockholders’
stock surplus adjustments comprehensive
income earnings equity
Balance at January 1, 2007 106,412 66,884 (3) 7,663 72,691 253,647
Net income - - - - 1,044 1,044
Unrealized loss on available-for-sale securities 737 - 737
Unrealized gain on available-for-sale securities - - - 678 - 678
Change of equity in investees under the equity method (3) - - (3)
Balance at December 31, 2007 106,412 66,884 (6) 9,078 73,735 256,103
Increase due to merger 6,007 20,919 - - - 26,926
Net income - - - - 7,578 7,578
Unrealized loss on available-for-sale securities - - - (123) - (123)
Acquisition of treasury stock - - (893) - - (893)
Change of equity in investees under the equity method - - - (8,400) - (8,400)

Balance at December 31, 2008 112,419 87,803 (899) 555 81,313 281,191

62 | 63
About woongjin group
Companies dedicated to a convenient and healthy
lifestyle, Woongjin Group
Woongjin Group was formed in 1980 as a specialist in the
education and publishing fields. It now comprises sixteen
companies in eight business areas business areas, and is
particularly known for its environmental technologies, such
as air and water purifiers, as well as domestic appliances.
The Group’s 2009 revenue target is 5,200 billion Korean
won. Woongjin Group is committed to fair business prac-
tices and transparent management. We pursue a strategy
of expansion under the belief that sustainable growth is a
company’s obligation.

Holding Company
-Woongjin Holdings | Woongjin Holdings provides consulting and IT services to Group affiliates,
helping them to establish stable and transparent management systems.

Environment · Consumer
-Woongjin Coway | A company that makes, sells and leases household environmental appliances,
including water purifiers, air cleaners and bidets.

Education · Publication
-Woongjin Think Big | An education services company that operates study programs and publishes educational materials.
-Woongjin Passone | An education services company targeted at adult students,
Passone integrates online and offline education to create optimal learning systems.

Construction · Leisure
-Kukdong E&C | Kukdong E&C is an integrated engineering and construction company with broad experience and technical capability.
-Rexfield Country Club | Boasting 3 courses and 27 holes, Rexfield is one of Korea’s most prestigious golf resorts.

Food & Beverage

-Woongjin Foods | A company dedicated to the promotion of healthy lifestyles based on the consumption of healthful, natural foods and beverages.

Service · Finance
-Booxen | A publishing and distribution company backed by a sophisticated logistics information system.
-Woongjin Holdings IT Service Area | A provider of general IT services to Group affiliates.
-Woongjin Holdings Business Area | A provider of MRO(Maintenance, Repair and Operation), FM(Facility Management) and Call-Center Service to Group affiliates.
-Woongjin Capital | A specialist in hedge fund management, supported by advanced financial management systems.
-Woongjin ST | A specialist in mobile handsets, providing comprehensive corporate IT services, hardware and software.
-Woongjin Lucas Investment Advisory | The customer’s asset management company that provide the best research and operation service
to customers to maximize the customer’s profit.

Energy
-Woongjin Energy | We develop and distribute next-generation recycled energy products,
particularly specializing in the production and sales of ingot, a core material for making solar cells.
-Woongjin Polysilicon | A leader in solar energy materials, which is a core future business of Woongjin Group,
we develop and produce polysilicon, a high-purity silicon product.

Material
-Woongjin Chemical | A dealer in environmental materials such as chemical cellulose, polyester materials, textiles and filters.
 Woongjin Holdings

Kukdong E&C Woongjin Think Big

Rexfield Country Club Woongjin Pass One

Holding
Company

Con- Education
struction / Publication
Leisure Woongjin Coway

Service Environ-
Finance ment
Consumer

Booxen
Woongjin Holdings IT Service Area
Food
Woongjin Holdings Business Area Woongjin Foods
Energy & Beverage
Woongjin Capital
Woongjin ST
Woongjin Lucas Investment Advisory
Material

Woongjin Energy
Woongjin Polysilicon

Woongjin Chemical

64 | 65
Providing the dynamic energy to propel society forward into the future.

The future is a mirror, reflecting the history that came before it. Kukdong E&C sees tomorrow in
the light of its own proud history of honorable social contribution and economic growth. Rather
than focusing on short-term numbers, we have made long-term investments in technologies that
benefitted our customers and society. Instead of merely chasing profits, we have elevated the level
of construction industry performance and inspired our workers to overcome engineering challeng-
es. We have worked in cooperation with our business partners, earned the trust of our customers,
and delivered quality products to the market. Kukdong E&C prizes value creation above profit seek-
ing. We are working to create a prosperous future and a contented society, a place where forward-
thinking citizens protect and preserve the world’s precious assets for future generations.With a
long history of involvement in mega-scale projects and social infrastructure works, Kukdong E&C
will next turn its 60 years of know-how and technical capability toward the future, and stand at the
frontier of a new and global world.
Produced by Kukdong E&C | Created by InterGram

Kukdong Engineering & Construction | www.kukdong.co.kr/eng

60-1 Chungmuro 3-ga, Jung-gu, Seoul, Korea
T +82-2-2280-6114 F +82-2-2275-0582

Dubai Office
Room No. 611, Faisal Ali Mukhtaral Yousuf Building
373-109, Al Barsha, Dubai, UAE
(P.O.BOX 118961, Dubai, UAE)

Cambodia Phnom Penh Office
1st Floor 92k, St.110, Tuolkok, Phnom Penh, Cambodia
T +855-23-880-067 F +855-23-880-071

Vietnam Ho Chi Minh Office

Saigon Trade Center 1210, the 12th floor
37 Ton Duc Thang St. District 1, Ho Chi Minh City, Vietnam
T +84-8-911-0770 F +84-8-911-0773