South Korea's construction companies are exploring other sectors to find new growth engines amid deteriorating profitability in the housing industry.

They are preparing to launch new ventures through changes in their articles of incorporation at regular shareholders' meetings scheduled this month.

Industry sources on Tuesday said Hyundai Engineering & Construction (E&C) at its shareholders' meeting on March 23 plans to add electricity supply through renewable energy sources and small-scale power brokerage to its business portfolio through a change in the builder's articles of incorporation.

This is the first time in six years for the company to change its articles to pursue a new business line since solar power generation and environmental management consulting were added in 2017.

"Under the judgement that the renewable energy market has high growth potential, the understanding is that internal units are being set up to prepare for entry into the renewable energy power brokerage sector," an industry source said.

Hyundai E&C is known to have reshuffled its portfolio to secure new growth engines. Its operating profit last year fell 22.8% from 2021 to 582 billion won ($441.9 million).

Kyeryong Construction Industrial is also planning to add data center construction, sales, operation and rental at its shareholders' meeting slated for March 28.

IS Dongseo will enter the waste battery recycling market this year by building a value chain, setting up a factory and starting operations after next year. Hanshin Construction plans to add e-commerce and system software development at its shareholders' meeting, and Hyosung Heavy Industries will newly pursue construction management.

Domestic builders are scrambling to find new sectors to enter because of their urgent need to lower exposure to the housing industry, which is highly volatile depending on the real estate market. Their gross profit margin of domestic building projects surged to 18% in 2021 but dropped to 11% last year.