This year, Hyundai Construction and Samsung C&T are on track to achieve a historic first by both joining the '10 trillion club' in the urban redevelopment market, as major construction firms ramp up their efforts for year-end contracts, intensifying competition for mid-tier rankings.
According to the construction industry on the 25th, Hyundai Construction has surpassed 12 trillion won in urban redevelopment contracts, while Samsung C&T is close to reaching the 10 trillion won mark. With several major redevelopment projects set to select contractors by the end of the year, fluctuations in cumulative contract amounts are expected among firms ranked fourth to eighth.
Hyundai Construction has secured 12.7315 trillion won in contracts. If it secures an additional contract worth approximately 600 billion won for the Hangang-ro area in Yongsan, its annual performance is projected to exceed 13 trillion won.
Samsung C&T recently won a contract for the Yeouido Shimbun Apartments worth 2.2685 trillion won on the 19th, bringing its cumulative contract amount to over 9.2388 trillion won. On the 24th, it added 1.25 trillion won from the Banpo Prugio remodeling project, increasing its total to 9.7305 trillion won.
If Samsung C&T secures the Mokdong 13 complex contract worth 2.3763 trillion won by the end of the year, its cumulative contract amount could reach 12.1068 trillion won. If both Hyundai Construction and Samsung C&T surpass 10 trillion won, it would mark the first time two construction firms have achieved annual contract amounts exceeding 10 trillion won in the domestic urban redevelopment sector.
GS Construction, currently in third place, is focusing on securing contracts to meet its annual target of 8 trillion won. After the Seongnam Sangdaewon 2 district was excluded from its performance, its cumulative contract amount has decreased to 5.5477 trillion won. However, if it secures the Mokdong 12 complex reconstruction project and the Yeouido Samik and Eunha Apartments reconstruction project, its cumulative contract amount could rise to approximately 8.4035 trillion won.
In the mid-tier rankings, competition for fourth place between Posco E&C and Daewoo Construction is fierce. Posco E&C secured the remodeling project for the Iksu Shin Dong-A 4 complex worth 5.260 trillion won on the 24th, bringing its cumulative contract amount to 4.8375 trillion won. Posco E&C is also expected to bid alone for the redevelopment project in the Yeoncheon district worth 5.875 trillion won, which could increase its cumulative total to 5.425 trillion won.
Daewoo Construction is set to exceed its annual target of 5 trillion won if it secures the Mokdong 8 complex reconstruction project worth 1.1119 trillion won, raising its cumulative contract amount to 5.4639 trillion won. The company is also pursuing additional contracts for the Yeouido Hwarang Apartments reconstruction, Shinwol City Housing reconstruction, Uijeongbu Ganggong 4 district redevelopment, and Seongsan Moa Town 4 district. If successful, its annual contract amount could exceed 7 trillion won.
Lotte Construction has also entered the mid-tier competition, currently holding a cumulative contract amount of 4.041 trillion won. It was recently selected as the preferred bidder for the Myeonmok 9 district public redevelopment project worth approximately 3.998 trillion won. If it secures the contract following the final vote in December, its cumulative total is expected to rise to 4.4108 trillion won.
DL E&C has secured 1.2868 trillion won through the Mokdong 6 complex reconstruction project, placing it among the lower-tier firms. However, with several projects set for contractor selection by year-end, there is significant potential for ranking improvement. The contractor selection meetings for the Seongsu 2 district (worth 2.0137 trillion won) and the Gwangmyeong Ha-an Jugong 9 complex (worth 930.9 billion won) are scheduled for November 21 and 29, respectively. Securing both projects could raise its cumulative contract amount to 4.2314 trillion won, surpassing last year's annual performance of 3.6848 trillion won.
IPARK Hyundai Industrial Development has recorded a cumulative total of 1.7666 trillion won through projects such as the Taepyeong 3 district public redevelopment and Uijeongbu Jangam 2 district redevelopment. It has also been designated as the preferred bidder for the Gunpo Geumjeong Station 1 district and is pursuing additional contracts in Gwangmyeong Ha-an Jugong 6 and 7 complexes and Mokdong 11 complex.
Song Seung-hyun, CEO of Urban and Economy, stated, "As the real estate market slows and construction costs rise, uncertainty in new development projects has increased, leading to a concentration of contracts in verified reconstruction and redevelopment projects. If two major construction firms each secure over 10 trillion won, it signifies that redevelopment projects have become a core business in the construction industry, but managing actual profits and cash flow is more important than the contract amount."
* This article has been translated by AI.
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