[Rebuild K-Construction]
Modular Construction Gains Attention as Eco-Friendly Solution
Danwood Acquisition Drives Operating Profit to 31.8 Billion Won
Secures Consecutive PC Contracts for Logistics Centers and Semiconductor Plants
PC Multi-Family Housing Design Verified for Over 30 Stories
A wooden modular house supplied by Danwood, a wooden modular housing specialist company acquired by GS Engineering & Construction. Photo by GS Engineering & Construction
GS Engineering & Construction is accelerating its growth in the prefab (prefabricated housing) sector, including modular construction. Modular construction is a method in which most building processes, such as the basic framework and electrical wiring, are completed in a factory in advance, and then assembled on site like Lego blocks. This approach minimizes environmental pollution that can occur at construction sites and reduces noise, pollution, and congestion, making it a notable example of eco-friendly and sustainable construction.
In 2020, GS Engineering & Construction acquired Danwood, a Polish company specializing in wooden modular houses, and developed it into a key pillar of its new business initiatives. Danwood’s operating profit, which was 27.5 billion won in 2021, reached 31.8 billion won in 2024, marking an increase of about 16% over three years.
Danwood’s largest market is Germany. In Germany, nearly 30% of all homes use the prefab method, making it a common practice. Danwood’s strategy is to supply high-quality homes based on price competitiveness. By automating its manufacturing process, the company has enhanced its cost competitiveness. It has also established a systematic technical training system to improve the skills and technical expertise of its workers and engineers.
Leveraging its cost competitiveness and quality, Danwood is expanding its market share within Europe and developing new product lines. The company is also preparing to enter new markets such as Norway and the Netherlands, where modular housing is already widespread.
Building on the technology and expertise acquired overseas, GS Engineering & Construction is also expanding its presence in the domestic modular market. In 2020, the company officially entered the domestic precast concrete (PC) business and established its subsidiary, GPC. PC refers to a construction method in which concrete components are prefabricated in a factory and then assembled on site to complete the structure. In 2021, GPC completed a factory in Eumseong, Chungcheongbuk-do, on a site of approximately 150,000 square meters, capable of producing 100,000 cubic meters of PC annually. Currently, GPC supplies PC to large logistics centers, factories, and underground parking lots. The company has also secured consecutive contracts to supply PC for semiconductor plant construction, gradually expanding its business scope.
A panoramic view of the Chungcheongbuk-do Eumseong factory of GPC, a precast concrete (PC) business subsidiary of GS Engineering & Construction. GS Engineering & Construction
In particular, in March of last year, GPC became the first in the industry to receive “low-carbon product certification” from the Ministry of Environment for two of its self-developed products. With the demand for eco-friendly products continuing to rise, GPC plans to expand its range of certified low-carbon products. Based on this, the company is also preparing to enter new markets.
Recently, GPC completed and tested a mock-up (a full-scale test building) of a multi-family residential building made with prefabricated concrete components on the factory site. As this modular apartment achieved the same residential performance as conventional apartments in terms of floor impact sound, waterproofing, insulation, heating, and airtightness, it is being seen as a step closer to the “Lego-style block apartment era.”
The “PC multi-family residential mock-up” completed by GS Engineering & Construction comes in two exclusive floor areas: 59 square meters and 84 square meters. Each mock-up features a four-bay layout, which divides the apartment’s sun-facing side into four rooms or living spaces. This structure offers excellent ventilation, daylight, a sense of openness, and ample storage. All mechanical, electrical, and interior and exterior finishing works have been fully demonstrated.
The design allows for application to buildings over 30 stories tall. All structural components were prefabricated at the GPC factory and installed on site using the PC method, and GS Engineering & Construction’s patented technology for reinforcing PC joints was applied. One of the advantages of multi-family housing made with PC is that there are no internal columns, allowing customers to freely change the interior layout to suit their individual lifestyles.
GS Engineering & Construction has completed verification of the reduced construction period. The company is also verifying construction costs compared to the reinforced concrete (RC) method in preparation for the full-scale market launch of PC-based multi-family housing this year. Starting next year, GS Engineering & Construction plans to actively participate in public PC multi-family housing projects commissioned by Korea Land & Housing Corporation (LH), Gyeonggi Housing & Urban Development Corporation (GH), and others.
A B2B housing model of XiGEIST, a GS Engineering & Construction subsidiary specializing in wooden modular detached houses. GS Engineering & Construction
Together with GPC, the company’s subsidiary XiGEIST, which specializes in wooden modular detached houses, is also preparing to enter the domestic prefab market. XiGEIST operates a production plant in Dangjin, Chungcheongnam-do, and is leading technological advancement in modular construction. It became the first in Korea to receive “industrialized housing recognition” from the Ministry of Land, Infrastructure and Transport in the wooden detached house sector. Through its self-developed “top-lifting hoisting method,” the company has secured efficiency and safety in construction. It has also improved the durability of wall structures and resistance to moisture, addressing the traditional weaknesses of wooden houses through technology.
XiGEIST has also strengthened landscaping and residential convenience. Last year, the company partnered with Kyungdong Navien to introduce an IoT-based smart home system, enhancing convenience and management efficiency. In October, XiGEIST signed a memorandum of understanding (MOU) with LF D&L, a total landscaping solution provider, to develop a system that organically links landscaping design, construction, and maintenance for modular detached houses from the design stage onward.
Through these technological enhancements, XiGEIST is expanding its business scope from the existing business-to-consumer (B2C) focus to business-to-business (B2B) and business-to-government (B2G) sectors, thereby strengthening its competitiveness in securing contracts. The company also participated in the nation’s largest “modular model house complex” in Andong, Gyeongsangbuk-do, supporting housing recovery for wildfire victims and providing practical housing alternatives to the local community.
A GS Engineering & Construction representative stated, “We will focus on the fundamentals of construction to strengthen our core and lay the foundation for mid- to long-term business through selection and concentration. Through this, we aim to establish a platform for sustainable growth and lead new changes through continuous innovation.”
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