Sambu Construction Wins 34 Billion KRW Contract for Pyeongtaek-si Ichung-dong Residential Accommodation Facility Project

[Asia Economy Reporter Jang Hyowon] Sambutogeon announced on the 31st that it has won the contract for the construction of a residential-type lodging facility in Ichung-dong, Pyeongtaek-si, Gyeonggi-do.

The residential-type lodging facility construction project won by Sambutogeon is a project to build 498 units of residential-type lodging facilities from basement level 5 to ground level 23 on the project site consisting of 9 parcels including 463-4 Ichung-dong, Pyeongtaek-si, Gyeonggi-do. The contract amount is 34 billion KRW, and the construction period is 31 months from the actual start date.

Near this residential-type lodging facility, Samsung Electronics Pyeongtaek Campus Factories 1 and 2 are in operation, and a total of 6 factories are planned to be established. Upon completion of all 6 factories, it is expected that about 100,000 workers including subcontractors will reside in the area.

Currently, Ichung-dong is experiencing a shortage of housing supply, causing most workers to commute from nearby areas. Additionally, Songtan Industrial Complex and Chilgoe Industrial Complex are located about 5 to 6 km away, providing abundant rental demand. Furthermore, considering that Songtan IC is 10 minutes away and Seojeong-ri Station is a 3-minute walk, the area is expected to attract investment demand due to its convenient transportation.

Nearby, there is Seojeong-ri Traditional Market and Nonghyup Hanaro Mart, and the school district is concentrated with schools such as Seojeong-ri Elementary School, Hyomyeong High School, and Jangdang Middle School, all within walking distance, which is also an advantage.

A company official stated, “The residential-type lodging facility in Ichung-dong, Pyeongtaek-si has a rich hinterland demand base and favorable transportation conditions. In addition, there are many facilities nearby such as Buraksan Fountain Park and Ichung-dong Leisure Sports Center that can improve quality of life, so we expect high rental preference.”

Sambutogeon plans to follow up on the 1,016-unit Asan Sinchang Phase 1 apartment complex, which was 100% sold out in January this year, by launching the Asan Phase 2 apartment complex on company-owned land in the second half of this year. Recently, the company secured a site for an apartment project in Deokso 1 District, Namyangju-si, Gyeonggi-do, investing about 127.6 billion KRW, and is proceeding with the permit process, actively expanding large-scale self-developed projects with excellent location conditions, growth potential, and profitability.

Meanwhile, at the regular shareholders' meeting held yesterday, Sambutogeon reported key management performance including sales of 376.3 billion KRW, up 66.3% from 226.2 billion KRW in the same period last year; gross profit of 31.6 billion KRW, up 83.7% from 17.2 billion KRW; and operating profit of 6.1 billion KRW, up 3.4% from 5.9 billion KRW.

At this shareholders' meeting, six agenda items including approval of financial statements and partial amendments to the articles of incorporation were submitted and all were approved as originally proposed. The board of directors reappointed all existing directors and appointed Lee Eunggeun and Lee Gyeyeon as co-CEOs.

A Sambutogeon official said, “By stabilizing management rights at this shareholders' meeting, we have laid the foundation for the company's continuous growth, including development of owned sites and strengthening of business activities.”