As this year's urban redevelopment race, estimated at around 80 trillion won, passed its halfway point, Hyundai Engineering & Construction, GS Engineering & Construction, and Samsung C&T emerged as the top three players. Across more than 70 redevelopment sites nationwide, builders competed for construction contracts worth about 34 trillion won, and the "Big 3" swept up 19.8804 trillion won, or 58.5% of the total. A major factor was winning large sites in "Apyeomokseong" (Apgujeong, Yeouido, Mokdong, and Seongsu), which emerged as this year's key theme in the redevelopment industry. Hyundai E&C, which took Apgujeong Zones 3 and 5, and GS E&C, which won the Seongsu Strategic Redevelopment District Zone 1, ranked first and second in first-half order value, respectively, while Samsung C&T, which secured Apgujeong Zone 4, ranked third. Observers say the second half will also hinge on who claims the remaining zones in "Apyeomokseong," which could reshape the redevelopment landscape.
Hyundai Concentrates on Apgujeong, GS Wins Nationwide, Samsung Takes Prime Gangnam Sites
According to the redevelopment industry Sunday, Hyundai E&C ranked first by cumulative order value in the first-half urban redevelopment market, which saw a flood of about 34 trillion won worth of contracts. Hyundai E&C recorded 4 deals totaling 7.6947 trillion won in the first half. It quickly claimed the top spot after making an uncontested entry into Apgujeong Zone 3 (5.561 trillion won), the largest reconstruction site recorded this year, through a single bid. It also secured Apgujeong Zone 5 after fierce competition with DL E&C by forming a consortium with Hanwha's construction division, taking an early lead in the "Apgujeong belt."
GS E&C posted meaningful results across all measures of deal count and value. It secured a balanced portfolio of 8 sites nationwide, all deemed prime in both location and scale, including Busan Gwangan Zone 5 (970.9 billion won), Seocho Jinheung Apartment (673.8 billion won), and Songpa Hanyang 2nd (685.6 billion won). GS E&C planted its flag at Seongsu Zone 1 and Sangdaewon Zone 2 in Seongnam, Gyeonggi, each carrying total construction costs of around 2 trillion won, bringing its first-half cumulative order value to 7.4694 trillion won. Its gap with first-ranked Hyundai E&C was only 225.3 billion won.
Samsung C&T drew attention with a "selection and concentration" strategy centered on the Gangnam area. Having recorded no deals through the first quarter, Samsung C&T secured 5 sites worth 4.7163 trillion won in orders in the second quarter alone. It won Apgujeong Zone 4, with total construction costs of 2.1154 trillion won, through a single bid, and planted its flag one by one at reconstruction complexes in Gangnam-gu and Seocho-gu, including Gaepo Woosung 4th, Daechi Ssangyong 1st, and Bangbae Shin Samho. Sinbanpo Zones 19 and 25 also drew attention as complexes secured after a fierce contest with POSCO E&C. Samsung C&T is also eyeing an order for the Seongsu Zone 3 redevelopment project.
Mid-Tier Builders Target Niches; Doosan E&C Takes 5th With 2.6 Trillion Won
While major builders battled fiercely over sites along Seoul's Han River, mid-tier builders posted results by targeting niche markets. As large builders shied away from small-scale and regional reconstruction and redevelopment sites with low profitability due to rising construction costs, mid-tier builders filled the gap, securing order backlogs and construction experience.
Doosan E&C is a prime example. Doosan E&C won a total of 2.6426 trillion won across 10 sites in the first half, taking 5th place ahead of major builders. It built a foundation in the first quarter by securing construction rights for the Shinan Villa reconstruction in Magok-dong and the streetside housing redevelopment project in Sillim-dong, and expanded its scale in the second quarter by winning Busan Mangmi Zone 5 (733.4 billion won) and Uijeongbu Ganeung Zone 3 (483.1 billion won) in succession. Doosan E&C has set this year's order target at 6 trillion won, the largest since its founding, and plans to focus on expanding orders centered on prime sites in the second half as well.
Hanwha's construction division also achieved 1.0865 trillion won in orders this year, surpassing last year's annual result of about 750 billion won. Hanwha's construction division succeeded in entering large sites by forming consortiums with Daewoo E&C and Hyundai E&C at the Sindaebang Station Area redevelopment and Apgujeong Zone 5, respectively. At the streetside housing redevelopment projects in Seokgwan Zone 1-7 and Seokgwan Zone 1-1, it raised profitability by securing construction rights for both zones in a linked strategy.
In addition, Hoban Construction, Dongbu Corporation, Kolon Global, and HJ Heavy Industries posted meaningful results by focusing on Seoul streetside housing redevelopment sites and simultaneously winning multiple small-scale projects in the surrounding areas.
Competitive Bidding Vanishes, Concentration Intensifies; Fortunes Diverge Even Among Majors
The first-half order race showed severe concentration, with 27.3441 trillion won, or 80% of the 34 trillion won in construction costs, going to the top 10 builders. Even within the top 10, fortunes diverged: while the "Big 3" order value approached 20 trillion won, the combined order value of the remaining 7 stood at just 7.4637 trillion won, or 37%.
Daewoo E&C (2.9153 trillion won) topped 2 trillion won, and Lotte E&C (1.5049 trillion won) and POSCO E&C (1.3471 trillion won) exceeded 1 trillion won to save face, while HDC Hyundai Development Company and Hyundai Engineering recorded no confirmed orders in the first half. DL E&C also opened its account for the year by winning the sole deal of the Mokdong Complex 6 reconstruction, worth 1.2868 trillion won in construction costs, through a private contract in June. However, Lotte E&C won Seongsu Zone 4, worth 1.3628 trillion won, entering the second half, pushing its cumulative order value for the year past 2.5 trillion won, while POSCO E&C and HDC Hyundai Development Company plan to pursue active order-winning activities in Mokdong, Yongsan, and elsewhere in the second half.
The virtual disappearance of competitive bidding was another feature of the first-half order race. Among the 32 sites where major builders participated in bidding, only 2 saw competition among builders: Apgujeong Zone 5 and Sinbanpo Zones 19 and 25. Even at small-scale sites such as streetside housing redevelopment projects, most contracts were awarded through a process in which a single builder submitted a sole bid and signed a private contract. This is the result of builders avoiding cutthroat competition amid growing construction cost risks from surging raw material prices, while selectively entering only sites with proven profitability.
The construction industry expects the "vanished competition, uncontested entry" phenomenon to continue in the second half. "Unless a location holds significant symbolism and profitability, not many builders will bother to engage in cutthroat competition," an industry official said. "With many trillion-won sites still waiting in the second half, order results will vary greatly depending on who secures 'Apyeomokseong.'"
