HDC Hyundai Development Company officials join a social responsibility event in July. (HDC Hyundai Development Company)

HDC Hyundai Development Company, a leading South Korean real estate developer, said Thursday it has recently seen progress in its ongoing efforts for sustainable growth.

HDC recently received an “A” rating in environmental, social and governance management from the Korea ESG Standards Institute, the highest rating in the construction sector. This improvement marks a one-grade increase from the previous year.

Key advancements in governance included appointing a female outside director, implementing annual board evaluations, and adopting e-voting for shareholder engagement. The company also strengthened oversight in board committees to meet best practices and achieved new ISO certifications in anti-corruption and compliance, aiming to enhance transparency and accountability.

In the environmental sector, HDC focused on minimizing its operational impact by adopting pollution control measures, increasing resource recycling, and setting long-term greenhouse gas reduction targets. The company is also preparing for future regulatory changes by establishing comprehensive reporting guidelines on emissions, waste management and energy use.

In terms of social responsibility, HDC reinforced its commitment to human rights by establishing related policies and conducting impact assessments on its workforce and stakeholders. Additionally, it expanded community welfare initiatives and invested in safety programs to ensure a secure working environment.

Financially, HDC’s performance has also improved. This year, the company’s credit rating was upgraded from “A-” to “A, stable” by major rating agencies, including Korea Ratings, NICE Investors Service, and Korea Investors Service, reflecting a strengthened financial foundation driven by new contracts and reduced project financing debt.

HDC proactively reduced its project financing debt to 1.6 trillion won ($1.1 billion) in October this year from 2.7 trillion won at the end of 2021 by utilizing internal cash reserves to cover project costs. Net debt also decreased from 1.4 trillion won in 2022 to roughly 900 billion won.

In the third quarter of this year, HDC reported cumulative revenue of 3.13 trillion won, up 2.8 percent from the same period last year, with an operating profit of 142.9 billion won, marking a 25.4 percent increase. The company attributed these gains to effective debt management and cost-saving measures across housing projects, where it aims to supply over 10,000 units by year’s end.

Investor interest in HDC has risen in line with its improved financial and ESG performance. By the end of the third quarter, foreign ownership nearly doubled to 13.79 percent, while the National Pension Service, one of Korea’s major institutional investors, increased its stake to 12.14 percent, up from 5.65 percent the previous year. HDC’s stock price has climbed by nearly 50 percent since January and was trading at 19,750 won as of Thursday afternoon.

Starting in November, HDC will begin large-scale development projects across the Seoul metropolitan area, focused on multipurpose complexes to generate stable cash flow and support long-term growth. Valued at over 4.2 trillion won, these projects will combine residential, commercial and recreational spaces through leasing and management operations.