Despite Real Estate Slump, Four Construction Companies Achieve '1 Trillion Won in Redevelopment Projects'

Despite the downturn in the construction and real estate markets, news of major construction companies achieving '1 trillion won' in maintenance project orders continues to emerge.

According to the construction industry on the 6th, four companies?POSCO E&C, Hyundai Engineering & Construction, Samsung C&T, and GS Engineering & Construction?have each surpassed 1 trillion won in orders for maintenance projects this year.

First, POSCO E&C has secured a total of 7 maintenance projects as of today, achieving orders worth 2.0606 trillion won. This includes 3 redevelopment and reconstruction projects (Seoul Bangbae Shindong-A, Sindang 8 District, Daejeon Doma Byeondong 2 District, etc.) worth 913.1 billion won, and 4 remodeling projects (Pyeongchon Chowon Sekyung Apartment, Haeundae Sangnok Apartment, Hyangchon Village Lotte 3rd Phase and Hyundai 4th Phase, etc.) totaling 1.1475 trillion won.

Samsung C&T Construction Division and Hyundai Construction Consortium (hereinafter Samsung-Hyundai Project Team) have won the redevelopment project for Ulsan Jung-gu B-04 district, surpassing 1 trillion won in redevelopment project orders this year. The photo shows the view of Jung-gu Gyodong 190-4 area, the redevelopment site of Ulsan Jung-gu B-04 district. Photo by Samsung C&T Construction Division.

Hyundai Engineering & Construction and Samsung C&T both announced at the end of last month that they won a consortium contract for the Ulsan Jung-gu B-04 redevelopment project worth 1.54 trillion won, each reaching 1 trillion won in maintenance project orders.

Hyundai Engineering & Construction secured a total of 4 projects, including 3 redevelopment and reconstruction projects (Busan Goejeong 7 District, Gumi Hyeonggok 4 Jugong, Ulsan Jung-gu B-04) and 1 remodeling project (Ilsan Gangseon Village 14 Complex), with orders totaling 1.5804 trillion won.

Samsung C&T secured one redevelopment project (Ulsan Jung-gu B-04) and one remodeling project (Garak Sang-A 2nd Phase), achieving orders worth 1.1463 trillion won.

GS Engineering & Construction secured maintenance project orders worth 1.1156 trillion won through 3 redevelopment and reconstruction projects (Nowon Sanggye Jugong 5 Complex, Ansan Seonbu Yeonrip 1 District, Cheongnyangni 6 District).

SK Ecoplant has not yet reached 1 trillion won in orders but has achieved 721.9 billion won as of today, making it highly likely to reach 1 trillion won soon.

Meanwhile, starting in June, major maintenance projects in Yeouido and Yongsan Districts in Seoul, as well as the three Gangnam districts, are expected to begin selecting construction companies, indicating a further boom in the maintenance project market.

The most fiercely competitive site is expected to be the Yeouido Shibeom Apartment Reconstruction in Seoul, which is being developed with up to 65 floors and about 2,400 households (including 300 public housing units). Construction companies such as Samsung C&T, Hyundai Engineering & Construction, DL E&C, GS Engineering & Construction, Daewoo Engineering & Construction, POSCO Construction, Lotte Engineering & Construction, and HDC Hyundai Development Company are actively preparing behind the scenes.

Intense competition is also anticipated for the Jangmi 1, 2, and 3 Reconstruction projects in Songpa District. With construction company selection expected in the second half of the year, many construction companies have already put up banners within the complexes to win over the union members' votes.

Additionally, major maintenance projects scheduled for the second half of the year include Apgujeong Apartment 3 District in Gangnam District, Hannam 5 District in Yongsan District, Sinbanpo 2nd Reconstruction in Seocho District, and Mia in Gangbuk District, where fierce competition among construction companies is expected.