Establishing a Stable Management Base Through Industry-Leading Cost Control
Nearly 2 Trillion KRW in New Projects to Break Ground This Year... Operating Margin Expected to Reach 5%
BS Hanyang has been selected as the preferred negotiation partner for two large-scale public housing projects commissioned by Korea Land and Housing Corporation (LH) and Housing and Urban Guarantee Corporation (HUG). The total project value is 626.2 billion KRW. By consecutively winning both public housing projects with private sector participation and private rental housing projects, the company is accelerating the establishment of a stable profit base.
On May 15, BS Hanyang announced that it had been selected as the preferred negotiation partner for the public housing project in Bubuk District, Miryang, Gyeongnam (A-1·S-2BL), as well as for the public-supported private rental housing project in Aju, Geoje, Gyeongnam.
The Miryang Bubuk project is the first public housing construction project with private sector participation in 2025, commissioned by LH. It consists of a total of 1,066 units, with a project cost of approximately 290 billion KRW. In public housing construction projects with private sector participation, LH provides the land while private companies are responsible for construction and sales. Private companies can propose various settlement methods for project costs, including profit sharing, priority settlement, and direct settlement. BS Hanyang proposed the 'direct settlement method,' in which LH settles construction costs directly, thereby minimizing cost risks. A-1BL (New:Home Standard Type, Integrated Public Rental) will consist of 744 units, and S-2BL (New:Home Standard Type, Selective) will consist of 322 units. Construction is scheduled to begin in December 2025.
The Geoje Aju private rental housing project, commissioned by HUG, will build 1,220 units (all units 84㎡) in Aju-dong, Geoje, where housing demand is increasing due to the boom in the shipbuilding industry. The project cost is 336.2 billion KRW. The public-supported private rental housing project is a construction-type rental REIT, in which a rental REIT jointly funded by the Housing and Urban Fund and private capital acquires land and builds and supplies rental housing. Construction companies can secure construction costs stably without the burden of land acquisition or the risk of unsold units.
Perspective view of Geoje Aju public-supported private rental housing (left), perspective view of Miryang Bubuk A-1BL (top right), perspective view of S-2BL (bottom right). Provided by BS Hanyang
Following its award of the Pyeongtaek Godeok private sector participation project last year, BS Hanyang has proven its competitiveness in public housing orders with this consecutive win. Last year, the company also diversified its order channels by securing urban redevelopment projects such as Goyang Haengsin and Incheon Bugae, as well as social overhead capital (SOC) projects including the Incheon Airport apron construction and Busan Port Grain Terminal. Its current accumulated order backlog amounts to 7 trillion KRW. The cost ratio remains at the industry's highest level, in the 80% range.
BS Hanyang has begun to see sales revenue from apartment presales, including at 'Hangang Sujain Obsent' in Bukbyeon, Gimpo. In the second half of this year, the company plans to launch new construction projects worth nearly 2 trillion KRW under the 'Sujain' brand, including the Incheon Yonghyeon-Hakik urban development project, the Gimpo Pungmu Station area residential development project, and the Busan Hanyang Plaza mixed-use development project. Based on these achievements, the company aims to reach 1.2 trillion KRW in sales and an operating margin in the 5% range in 2025.
A BS Hanyang representative stated, "We have secured a stable growth foundation through selective order-taking focused on cost and profitability, as well as thorough risk management," adding, "Building on our construction sector achievements, we are accelerating efforts to secure new growth engines such as clean energy including LNG and hydrogen, and future city development."
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