Korea E&C: Middle East reconstruction positive for Korean EPCs if government steps up; OW Hyundai E&C and Doosan

Research evidence excerpt

Korea E&C: Middle East reconstruction positive for Korean EPCs if government steps up; OW Hyundai E&C and Doosan

J P M O R G A N Asia Pacific Equity Research

17 June 2026

Korea E&C

Middle East reconstruction positive for Korean EPCs if

government steps up; OW Hyundai E&C and Doosan

The Korean government has signaled an interest in participating in Middle East Korean Autos

ACreconstruction plans amid reports the US is considering a ~$300bn rebuilding fund Sonny Lee

for Iran as part of the end-of-war negotiations. We were previously cautious about (82-2) 758 5716

this initiative given intense competition from Chinese/Indian peers, but we would sonny.lee@jpmorgan.com

turn constructive if the Korean government actively participates in financing, as Seri Yoon

large overseas projects are often structured via consortia where funding sources (82-2) 758 5704

and EPC slots are closely linked, improving order visibility for Korean EPCs. If seri.yoon@jpmorgan.com

J.P. Morgan Securities (Far East) Limited, Seoul

awarded, reconstruction work could be margin-accretive given lower counterparty Branch

risk, a higher likelihood of cost-plus structures, and reduced execution risk in

rebuild/expansion projects. We reiterate our Overweight ratings on Hyundai E&C

(HDEC) and Doosan Enerbility (Doosan) as the key potential beneficiaries.

• The Korean government has expressed interest in participating in the

Middle East reconstruction. Local media has reported that the Korean

government has signaled its intent to play a constructive role in Middle East

reconstruction, as the US is reportedly considering establishing a ~$300bn

rebuilding fund for Iran as part of the end-of-war negotiations (link). While no

formal proposals have been made, the Financial Times noted that Korean,