[Construction in] POSCO E&C "Yongsan Maintenance Depot Win is a Turning Point... Foothold for Han River Belt Orders"

POSCO E&C’s Jang Geun-ho:
“Trust and sincerity will make us number one
in urban redevelopment”

"We do not overextend ourselves to win orders. Instead, we always keep our promises. Trust is the key in urban redevelopment projects."

Jang Geun-ho, Head of Urban Redevelopment Sales at POSCO E&C, emphasized this on the 14th, stating that urban redevelopment projects are a stage where brand image and corporate trustworthiness are comprehensively evaluated. In this regard, winning the bid for the 'Yongsan Jeongbichang Front 1 District' holds significance beyond just a large-scale project. Jang said, "Success in Yongsan is essential to enable expansion to Seongsu, Apgujeong, and Jamsil," adding, "Yongsan Jeongbichang is truly the gateway and foothold for entering the Han River belt."

Jang Geun-ho, Head of Urban Maintenance Sales at POSCO E&C, is being interviewed by Asia Economy at the Yeouido office. Photo by Yoon Dong-joo

The Yongsan Jeongbichang Front 1 District is a complex development area that will include 777 apartment units, 894 officetel units, as well as commercial and office facilities. The construction company bidding closes on the 15th of this month. The final contractor selection is expected to take place in June. HDC Hyundai Development Company is considered a main competitor.

Jang joined POSCO E&C in 1996 and has been a '29-year POSCO man.' The Yongsan Jeongbichang bid is highly significant for POSCO E&C, to the extent that Jang regards it as a 'turning point' for the company. As a latecomer in the redevelopment industry, POSCO E&C began implementing a 'step-up strategy' in the late 2010s, moving away from a bidding structure centered on provincial metropolitan cities to enter the Seoul metropolitan market, especially Seoul itself. By consecutively winning large projects in areas such as Noryangjin, Jeongneung-gol, Gireum, Sindang, and Bangbae, the company rose to second place in the industry based on urban redevelopment order performance.

Due to the nature of urban redevelopment projects, 'brand trustworthiness' and 'corporate image' greatly influence the selection by union members. Jang stated, "A philosophy based on trust is POSCO E&C's greatest weapon." He emphasized, "We have rarely halted construction, and we avoid lawsuits with union members as much as possible. We do not use price as a pretext for threats or forcibly change conditions." He particularly mentioned POSCO E&C’s organizational culture, which still retains a 'public enterprise DNA,' explaining, "The culture that values promises to customers over short-term profits permeates the entire company."

Jang Geun-ho, Head of Urban Maintenance Sales at POSCO E&C, is being interviewed by Asia Economy at the Yeouido office. Photo by Yoon Dong-ju

POSCO E&C has the lowest level of defect disputes in the industry and has ranked first 15 times in the 'Korea Quality Satisfaction Index (KS-QE)' announced annually by the Korea Standards Association. It holds the top record for constructing super high-rise apartments and has experience developing the entire Songdo International City. Jang explained, "The three elements of no disputes, high quality, and high trust are the reasons we have been able to grow rapidly in the urban redevelopment market."

From a branding perspective, POSCO E&C is pursuing change. Following the existing 'The Sharp' brand, it has launched the high-end brand 'Otier' to complement the premium brand line necessary for entering the Gangnam area of Seoul. Jang acknowledged, "It is true that we still lag behind in brand recognition, especially in Gangnam, Seoul," but predicted, "Once Otier Banpo and other Otier completions become visible, perceptions will change significantly." Otier will also be applied to the Yongsan Jeongbichang Front 1 District. There is also a space to experience Otier at 'The Sharp Gallery' near Suseo Station.

Finally, Jang said, "This year’s competition for urban redevelopment orders is fiercer than ever," adding, "Although POSCO E&C was a latecomer, we will do our best to become the representative brand that comes to mind when thinking of redevelopment projects." He emphasized, "Winning many orders does not make you number one. POSCO E&C aims to be recognized as number one by sincerely conveying our commitment to customers."