GS Engineering & Construction, the nation’s fourth-largest builder in terms of capacity, named chief financial official Lim Byung-yong as its new CEO, replacing current CEO Huh Myung-soo, as part of efforts to bring change and innovation to the organization, the company said in a press release.

“The decision was made at the latest board meeting on June 12 and three business divisions, led by each division head, will be merged and put under the direct control of chairman Huh Chang-soo,” the company said.

According to the board’s decision, the company’s global operation chief Woo Sang-ryong will also step down.

The reshuffle of top management and organizational structure is a response to the builder’s recent business slump. The company rattled the construction industry, posting an earnings shock in the first quarter of this year. Its operating loss reached 535.4 billion won ($471.40 million) in the January-March period.

Industry watchers predicted the move of the nation’s fourth-largest builder will step up restructuring of other faltering builders.

(jyseo@heraldcorp.com)