Construction Begins Only After Securing Over 80% of Association Members
Seohui Construction, ranked 18th in construction capability evaluation, announced on the 11th that it has achieved the largest scale in the industry by recording a cumulative order amount of approximately 10 trillion won in regional housing association projects.
Seohui Construction has been actively participating in regional housing association projects since 2008, expanding related businesses. To date, it has carried out projects in about 80 complexes nationwide, totaling approximately 100,000 households. Currently, there are 26 projects under construction or contracted/committed, amounting to about 25,000 households.
The regional housing association market is a sector that construction companies tend to avoid. Regional housing association projects involve local residents coming together to form an association, jointly purchasing land, and building apartments. Although it offers the advantage of acquiring a home at a price lower than general sales, many cases experience long delays due to issues such as land acquisition, recruiting association members, and permits during the process.
In response, Seohui Construction applies an internal standard of starting construction only after recruiting more than 80% of association members and proceeds only with projects where land acquisition is complete. Seohui Construction stated, "Our company standards for regional housing association projects are stringent," adding, "Not merely focusing on construction, but actively resolving issues arising during the project process is also a factor that earns the trust of association members."
Amid the real estate market downturn and increasing risks of contingent liabilities from project financing (PF), Seohui Construction is maintaining a selective order strategy and strengthening risk management. Financial soundness indicators have also improved. The debt ratio, which was 113% in 2022, decreased to 58% as of the third quarter of last year. During the same period, the reliance on borrowings also dropped from 8.6% to 7%. The current ratio recorded 183% as of the third quarter of last year, maintaining a high level following Daewoo Construction (185%) among the top 20 construction companies. The corporate credit rating is also relatively favorable. The corporate bond credit rating of Seohui Construction, announced by Korea Ratings, was evaluated as 'A3+'.
Seohui Construction explained that it has enhanced quality competitiveness through its own brand, 'Seohui Starhills.' In 2002, Seohui Construction was selected as an excellent construction company by the Korea Land and Housing Corporation (LH) and subsequently received quality certifications for numerous projects such as Hwaseong Taean and Hanam Gam-il. It has also been recognized for construction quality by winning awards such as the Korea Architecture Culture Award, Residential Culture Award, and Apartment Award. The company is also focusing on safety management. In January this year, it held a safety practice resolution meeting and declared a 'Zero Major Accident' goal, promoting the strengthening of its safety and health system.
Kim Won-cheol, CEO of Seohui Construction, said, "We will continue our projects based on the accumulated success know-how, expertise, and abundant business experience in regional housing association projects," adding, "As a leading representative in the domestic regional housing association market, we will proactively lead the market."
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