'Remodeling Surge' DL E&C Ranks No.1 in Maintenance Project Orders in First Half of the Year

Cumulative Orders Reach 1.8 Trillion KRW... Three Times the Same Period Last Year
Remodeling Outperformed Amidst Reconstruction Slowdown

[Asia Economy Reporter Onyu Lim] In the first half of the year, DL E&C (formerly Daelim Industrial) ranked first in the maintenance project sector with orders worth approximately 1.8 trillion KRW. This success is attributed to active order acquisition in the remodeling market, an alternative market amid the contraction of reconstruction and redevelopment in the metropolitan area.

According to the construction industry on the 6th, DL E&C recorded the highest order amount in domestic maintenance projects in the first half of this year. DL E&C succeeded in securing a total of 1.7395 trillion KRW in orders. Considering that the order amount in the same period last year was 539 billion KRW, this represents more than a threefold increase.

DL E&C's remarkable progress appears to be largely due to its successful return to the remodeling market. Of the total order amount of 1.7395 trillion KRW, 60%, or 1.0334 trillion KRW, came from the remodeling market. Starting with the 322.5 billion KRW Gunpo Sanbon Ureuk Apartment project in May, the company consecutively secured major remodeling construction rights such as Suwon Yeongtong Shinseong Sinan Ssangyong Jinhung (215.9 billion KRW) and Sanbon Yulgok (495 billion KRW). A DL E&C official stated, "We plan to actively participate in remodeling project orders centered on Seoul and the first-generation new towns in the future."

There is also an analysis that the order performance of construction companies in maintenance projects in the first half was determined by remodeling. In fact, most of the top construction companies in cumulative order amounts made significant advances in the remodeling market. Daewoo E&C, ranked second, recorded orders worth 1.7372 trillion KRW in the first half by winning projects such as Garak Ssangyong 1st and Suji Hyundai. Ssangyong Construction, which holds the record for the highest remodeling completion performance, recorded orders worth 1.34 trillion KRW based on the remodeling project orders for Gwangmyeong Cheolsan Hanshin in March and Garak Ssangyong 1st in May.

An industry insider said, "Demand for maintenance projects is increasing, but reconstruction promotion is difficult due to various regulations and project feasibility issues," adding, "Construction companies seeking new growth engines will expand their activities in the relatively less regulated remodeling market going forward."

Meanwhile, according to the Korea Construction Industry Research Institute, the remodeling market size is expected to grow from 17.3 trillion KRW last year to 37 trillion KRW in 2025 and 44 trillion KRW in 2030. As of May, 72 complexes with 53,890 households have completed association establishment, and 24 complexes are about to select construction companies.