[Constructionin] "Why Kumho Construction Saved 'Atera' for 2 Years"

Interview with Songjeong Kumho Construction Housing Business Management Team Leader
Need to Replace Existing Mid-Tier Brand 'Eoullim' Identity Increases
Brand Launch Delayed Due to High Interest Rates and Economic Downturn
Unveiled Early This Year as Market Recovers and Landmark Projects Arise
"Fully Committed to Brand Management for Consumer Satisfaction"

It took a full three years for Kumho Construction's new residential brand ARTERA to come to life. The brand development itself took less than a year. However, high interest rates, high inflation, and an economic downturn blocked the start of the new brand. The birth of Kumho Construction's new residential brand, which should have coincided with the company name change in 2021, went through a long two-year gestation period due to these reasons.

Song Jeong, Head of the Housing Business Management Team (Senior Manager) at Kumho Construction, who oversaw the planning and production of 'ARTERA,' said on the 19th, "I believed that the timing of the launch was the most important factor for increasing awareness and early market establishment of the new brand. Even when we decided to launch earlier this year, I was very anxious, but I trusted and pushed forward with our first project into which we poured all our capabilities."

The Head of the Housing Project Management Team at Kumho Construction, Songjeong, is being interviewed by Asia Economy at the headquarters in Jongno-gu, Seoul. Photo by Huh Younghan younghan@

This year, the real estate market showed a rising trend in housing prices centered around Seoul. Expectations for a base interest rate cut in the second half of the year were also growing. Above all, there was confidence in 'Cheongju Technopolis ARTERA,' where 'ARTERA' was first applied. It was supplied in 'Cheongju Technopolis,' a landmark in Cheongju City, Chungbuk Province, and considerable effort was put into product design, making it reasonable to expect a successful subscription. Team Leader Song explained, "We aimed to imprint the brand on consumers by selling in a landmark project. We did not even run separate sales advertisements."

His strategy worked. The average competition rate for the first-priority subscription of 'Cheongju Technopolis ARTERA,' held on the 3rd of last month, recorded 47.4 to 1 (24,692 applications for 521 units). It also succeeded in 'early sell-out (complete sale)' within two weeks. The 'Goyang Janghang ARTERA' in Goyang City, Gyeonggi Province, which was sold on the 6th of this month, also recorded an average first-priority subscription competition rate of 30.7 to 1, the highest in the Janghang district of Goyang City. Team Leader Song said, "We plan to quickly raise the brand's status by continuing to supply in key locations within the region and differentiating product competitiveness."

The successful replacement of the residential brand signifies a 'new beginning' for Kumho Construction. Kumho Construction has solidified its foundation through brands such as 'Kumho Apartment,' 'Kumho Town,' and 'Kumho Bestville,' and more recently through 'Richensia' (premium residential-commercial complex apartments) and 'Eoullim' (general apartments). However, 'Eoullim' remained a mid-tier construction company brand, and 'Richensia' had weak recognition as a Kumho Construction brand. In this situation, Kumho Construction faced a turning point in 2021. As the importance of apartment brands grew, there was a consensus that the brand needed to be replaced to sustain continuous order growth.

The birth of a new residential brand after 20 years was the result of intense discussions. The task force (TF) team formed for brand development included about 15 core practitioners from seven key departments: Housing Business Management, Product Design, Sales, Public Relations, Strategic Planning, and Construction Management, holding regular weekly meetings. Team Leader Song said, "We made great efforts to break away from the existing image. After repeated meetings on BI (Brand Identity), logo, exterior design, landscaping, and more to improve customer satisfaction, ARTERA was born."

Kumho Construction plans to supply more than 7,000 units this year, more than double last year, in major cities in the metropolitan area and provinces. Next year, they aim for a similar volume. Locations include Dogok-dong in Gangnam-gu, Seoul, Godeok International City in Pyeongtaek, Gyeonggi Province, and Bongmyeong District in Cheonan, Chungnam Province. Team Leader Song emphasized, "Now that we have successfully launched, it is time to put a lot of effort into brand management to provide satisfaction to consumers. Through this, we will create a brand that is recognized as a good brand for a long time, not one that shines briefly and disappears."

Team Leader Song is a housing expert who joined Kumho Construction in 2003 and has been with the housing division for over 20 years. He witnessed the birth of the 'Eoullim' brand in his first year and led the launch of the new brand 'ARTERA' about 20 years later.

The head of the Housing Project Management Team at Kumho Construction, Song Jeong, is being interviewed by Asia Economy at the headquarters in Jongno-gu, Seoul. Photo by Huh Younghan younghan@