[Constructionin] "Europe Recognizes the Growth Potential of Prefab First"

Kim Soo, GS Construction Overseas Prefab Business Manager
Prefab Producing Parts in Advance for On-site Assembly
Shortened Construction Time and Diverse Building Forms Popular in Europe
Seeking Overseas Expansion in Saudi Arabia, Australia, and the United States

Editor's Note'Construction in' is an interview series that focuses on individuals active in the construction industry. We aim to deliver vivid industry stories by meeting construction professionals who stand out in various fields such as core businesses and new growth engines of construction companies.

Kim Soo, in charge of GS Construction's overseas Prefab business, is being interviewed at the GS Construction headquarters. Photo by Heo Younghan younghan@

"GS Construction's subsidiaries, Elements in the UK and Danwood in Poland, handle a wide range of products from low-cost detached houses priced around 3 million KRW per pyeong (3.3㎡) to hotels costing over 20 million KRW. Based on their experience in the UK and Germany, the two companies are exploring expansion into Saudi Arabia, Australia, and the United States."

Kim Soo, head of GS Construction's overseas prefab business, said on the 1st, "GS Construction CEO Heo Yoonhong emphasized the need to adopt prefab more boldly."

The prefab business is one of the new ventures that CEO Heo Yoonhong holds a special affection for. Heo, who served as head of the New Business Promotion Office, has devoted efforts to discovering future strategic businesses including modular construction. After acquiring Danwood and Elements in early 2020, GS Construction has been growing prefab as a key pillar of its business.

Prefab refers to a construction method where components are manufactured in advance and assembled on-site. Among these, modular construction involves producing materials such as frames and electrical wiring in factories and assembling them on-site like stacking blocks. Kim, who plays a role equivalent to the head of this business's overseas operations at GS Construction, works in the UK and met with reporters during a business trip to Korea.

He said, "The construction industry needs change, and prefab is one of the ways. Globally, not many places have fully embraced prefab." Although the construction industry tends to be conservative and slow to adopt innovative methods, he believes the growth potential for prefab remains open.

In Europe, where the prefab market is more developed than in Korea, various buildings from detached houses to high-rise buildings are constructed using modular methods. Danwood is Germany's number one modular turnkey company, supplying about 1,000 modular homes annually and starting multi-family housing projects this year. Elements secured the 'Camp Hill Project' in Birmingham, UK, which includes 550 rental housing units and commercial facilities (completion scheduled for April 2026), and the 'East Road Project' in London, a 23-story office hotel (completion by the end of the year).

Kim Soo, in charge of GS Construction's overseas Prefab business, is being interviewed at the GS Construction headquarters. Photo by Heo Younghan younghan@

Regarding why prefab is preferred in Europe, Kim explained, "In Northern Europe, the sun sets early and winters are long, so the construction period is short, leading many detached houses to be built using prefab." He added, "In the UK, since the main contractor does not subcontract but proceeds horizontally, high-rise buildings typically take over three years to complete, but rental housing projects are produced in 20 months and finished with final touches within 36 months."

In Germany, about 20% of all buildings are constructed using prefab. Danwood segments its detached house products by price into Family, Today, Next, and Vision lines. They are also completing a Vision sample house in Frankfurt. Danwood, originally a wooden modular company, has incorporated steel frames, which is a synergy achieved after acquisition.

Kim said, "Our technology research team in Korea develops new technologies annually, which we directly apply and test in the UK and Germany." He added, "Although Danwood is a wooden modular company, it has recently started producing steel frame modular products." Elements, which has many high-rise modular achievements in Saudi Arabia, continues to receive love calls. They are also eyeing opportunities to enter advanced markets such as Australia and the United States.

Kim Soo, in charge of GS Construction's overseas Prefab business, is being interviewed at the GS Construction headquarters. Photo by Heo Younghan younghan@

Kim explained, "We hold weekly meetings with Saudi Arabia. Although the outlook is bright, the market is somewhat ambiguous, so we are waiting for the right time when attractiveness increases. We are quietly seeking definite opportunities." He continued, "We are also looking at housing market opportunities in Australia, where infrastructure projects are ongoing, and California, where development projects are active. Once the target market is identified, we plan to accelerate."

The prefab business reflects the values society demands. It is a construction method that minimizes carbon emissions and enables efficient use of materials. He believes this trend could influence the domestic construction industry as well. Kim said, "Large construction companies in Australia and the UK have encouraged prefab before but failed. Based on the know-how gained from working with various clients ranging from detached houses to semiconductor companies, our goal is to build thousands of high-end 'Xi' apartments using prefab in the heart of Seoul in the future."