GS E&C is within sight of setting a record for urban redevelopment orders. With first-half orders alone approaching 8 trillion won, the company aims to surpass 10 trillion won for the year by securing major redevelopment projects in Yeouido and Mokdong in the second half. Building on the rebranding of its housing brand "Xi" and its quality competitiveness, the company plans to solidify a "Big Three" structure in urban redevelopment alongside Hyundai E&C and Samsung C&T.
GS E&C has continued its urban redevelopment order streak this year, starting with the Songpa Hanyang Phase 2 redevelopment in January. The construction cost for Songpa Hanyang Phase 2 is 685.6 billion won. The company subsequently secured construction rights for Gaepo Wooseong Phase 6 (215.4 billion won), Seongsu District 1 (2.154 trillion won), and Busan Gwangan District 5 (970.9 billion won). Adding the 1.9217 trillion won in construction rights for the Seongnam Sangdaewon District 2 redevelopment, which is under legal dispute, brings cumulative orders to 7.4694 trillion won. That trails Hyundai E&C, the current No. 1 in urban redevelopment orders with 7.6947 trillion won, by just 225.3 billion won.
Industry observers say that if this momentum continues, GS E&C is likely to surpass its previous record for urban redevelopment orders. GS E&C's all-time high order figure was 8.081 trillion won, recorded in 2015. The company can expect not only to reach this year's order target of 8 trillion won, but also to break the record for the first time in 11 years.
The key battlegrounds for future order competition are Yeouido and Mokdong. GS E&C has identified the Sambu, Eunha, and Samik apartments in Yeouido, and Complexes 2, 4, 7, 9, and 12 in Mokdong as its main targets. Lee Sang-eui, head of GS E&C's urban redevelopment division, stressed, "Yeouido and Mokdong carry symbolic significance—building a riverside super-high-rise landmark in Yeouido and developing a mini-new-town-scale large complex in Mokdong—making them key strategic locations that will lead residential trends over the next decade." If GS E&C achieves meaningful results in Yeouido and Mokdong, its urban redevelopment orders this year could surpass 10 trillion won.
The company also sees the first-generation new town redevelopment market as a target to capture early. "Redevelopment projects (in first-generation new towns) are expected to gain full momentum after next year, and we aim to secure the initiative with experience that is a step ahead of competitors," Lee said.
GS E&C views this year and next as a period to strengthen profitability and business competitiveness. The company successfully turned a profit in 2024, after the inauguration of CEO Huh Yoon-hong, and last year posted an operating profit of 437.8 billion won, entering a phase of management normalization. The plan is to make 2026 the starting point for sustainable growth.
Due to the downturn in the construction and real estate markets, first-quarter revenue fell nearly 30 percent this year. However, operating profit rose from a year earlier to 73.5 billion won, continuing a management approach that prioritizes profitability over scale.
At the center of restoring competitiveness in the housing business is the rebranding of the Xi brand. Launched in September 2002, Xi has positioned itself as a premium brand from the outset. Unlike other builders that operate separate high-end brands, GS E&C maintains a single-brand strategy to pursue differentiation.
The company has also incorporated technology into quality management. GS E&C operates a self-developed artificial intelligence (AI)-based "defect prevention platform." On this basis, it recorded zero defects for two consecutive rounds in defect rulings by the Ministry of Land, Infrastructure and Transport's Defect Review and Dispute Mediation Committee, achieving "zero defects" for a full year.
The company is also working to expand Xi beyond a residential product into a lifestyle platform. It held experiential pop-up campaigns in Seongsu-dong and Mokdong, allowing customers to directly experience the brand's products and values.
"We have gone through a difficult period for a while, but we are doing business with the determination to show results," Lee said. "Xi aims to expand the standard of high-end competition from luxury that is shown to value that is experienced."
