Top 10 Construction Companies See Quantum Leap in Urban Redevelopment Orders This Year [Real Estate AtoZ]

Hyundai E&C Surpasses 10 Trillion Won, Samsung C&T Exceeds 9 Trillion Won
Four Companies Top 5 Trillion Won, Market Concentration Intensifies
Orders Focus on High-Profit Seoul Redevelopment Projects
Top Firms Expected to Dominate Apgujeong, Seongsu, Mok-dong and Other Key Areas

This year, the top 10 construction companies have seen a significant increase in their urban redevelopment project orders compared to last year. Hyundai Engineering & Construction surpassed 10 trillion won in orders, while Samsung C&T and HDC Hyundai Development Company roughly tripled their order amounts, drawing particular attention. Some construction companies, however, reduced or limited their orders due to safety accidents at construction sites.

According to the construction industry on December 29, Hyundai Engineering & Construction recorded the highest total urban redevelopment project orders this year, amounting to 10.5105 trillion won. All companies ranked first through fourth exceeded 5 trillion won in orders, achieving record-breaking results.

Hyundai Engineering & Construction secured a total of 11 projects, including six reconstruction and redevelopment projects in Seoul such as Apgujeong District 2 (2.7489 trillion won), Gaepo Jugong Complex 6 and 7 (1.5138 trillion won), Jangwi District 15 (1.466 trillion won), as well as Guri Sutaek-dong redevelopment (1.9648 trillion won) and Busan Yeonsan District 5 (765.7 billion won).

Samsung C&T ranked second, winning 9.2388 trillion won in orders-three times more than last year. Of the 14 projects Samsung C&T secured, 13 are located in Seoul. The company achieved notable wins in key projects such as Hannam District 4 (1.5695 trillion won), which it won after competing with Hyundai Engineering & Construction, Sinbanpo 4th (1.031 trillion won), Yeouido Daegyo (798.7 billion won), and Gaepo Woosung 7th (675.7 billion won). Additionally, the company secured redevelopment projects such as Jangwi 8 Public Redevelopment (1.1945 trillion won) and Ulsan Nam-gu B-04 (698.2 billion won).

GS Engineering & Construction ranked third, with total urban redevelopment orders amounting to 6.3461 trillion won-doubling last year’s figure of 3.1098 trillion won and moving up from fourth to third place. For the first time in three years since its record 2022 performance (7.148 trillion won), the company surpassed the 6 trillion won mark again. Notably, GS Engineering & Construction succeeded in independently winning a major project in the Gangnam area by securing Jamsil Woosung (1.6427 trillion won). The company also won six projects in Seoul, including Seongbuk District 1 (927.8 billion won), Junghwa District 5 (649.8 billion won), and Bongcheon District 14 (627.5 billion won). Outside the capital region, it secured four projects, including Busan Suyeong District 1 (637.4 billion won) and Sajik District 3 (408.2 billion won).

POSCO E&C dropped from second to fourth place this year. Its total orders increased to 5.9623 trillion won from last year’s 4.7191 trillion won. POSCO E&C secured seven projects, including Seongnam Eunhaeng Jugong (1.2972 trillion won), Bangbae District 15 reconstruction (755.3 billion won), Sutaek-dong redevelopment (842.1 billion won), and Isu Geukdong and Woosung remodeling (1.9796 trillion won). However, following a fatal accident at the Gwangmyeong Shinansan Line site in April, the company adopted a more conservative approach to redevelopment orders, winning only two projects (Jeolla Junggyo Ilwon District and Singil District 2) in the second half of the year.

HDC Hyundai Development Company tripled its orders compared to last year, rising from eighth to fifth place. Its order amount increased from 1.5974 trillion won last year to 4.8012 trillion won this year. The company expanded its Seoul redevelopment orders to three projects, including the Yongsan Jeonmyeon District 1 (924.4 billion won), Mia District 9-2 (led by Hyundai Engineering & Construction), and Sindang District 10 (led by GS Engineering & Construction). Of its total nine projects, six were outside the capital region (three in Busan, one each in Daejeon, Incheon, and Wonju).

Daewoo Engineering & Construction dropped from fifth to sixth place, but its redevelopment orders increased from 2.9823 trillion won to 3.7727 trillion won. The company secured nine projects, including Seongnam Sinheung District 3 redevelopment (1.2687 trillion won), Mullae-dong 4-ga redevelopment (467.3 billion won), Yuwon Jeil 2nd (370.2 billion won), and Cheongpa District 1 (355.6 billion won). It also won two street housing redevelopment projects in Mapo Jung-dong 78 and Busan Gwang-an-dong 373.

DL E&C’s order amount reached 3.6848 trillion won, including Hannam District 5 (1.7584 trillion won), Jeungsan District 4 (1.0018 trillion won), Jangwi District 9 (525.3 billion won), and Yeonhui District 2 (399.3 billion won). The company climbed three ranks from last year to seventh place.

Lotte Engineering & Construction secured 3.3668 trillion won in orders-1.7 times more than last year-ranking eighth among the top 10 construction companies. Of these, four projects were in Seoul: Sanggye District 5 (425.7 billion won), Songpa Garak 1st Hyundai (416.7 billion won), Mia District 4-1 (414.7 billion won), and Sin Yongsan Station North District 1 (352.2 billion won). SK Ecoplant secured three projects: Myeonmok District 7, Siheung 1-dong Moa Town Districts 3 and 4, and the integrated redevelopment of Gwangmyeong Districts 13-1 and 13-2. Its annual urban redevelopment orders decreased by 325 billion won from last year, totaling 982.3 billion won. Hyundai Engineering & Construction effectively withdrew from redevelopment projects after the collapse accident at the Sejong-Anseong Expressway construction site, resulting in no order performance this year.

Lee Ji-hye, a research fellow at the Construction Industry Research Institute, stated, "Due to the downturn in the construction market, there was a significant decrease in orders for civil engineering and public sector projects, which forced companies to participate more in urban redevelopment orders. In regional areas, unsold apartments remained, so projects were inevitably focused on urban redevelopment in Seoul and major metropolitan cities."

Next year, contractors will be selected for key locations in Seoul such as Apgujeong, Seongsu, Yeouido, and Mok-dong. Major project sites include Apgujeong Districts 4 and 5, Seongsu Districts 1 and 4, Yeouido Siheom, and Mok-dong New Town. An industry insider explained, "There are projections that next year's urban redevelopment market will reach around 80 trillion won, with the top five contractors expected to dominate the market."