'Samsung C&T' Returns to Redevelopment Projects... Competition Among Major Construction Firms Intensifies

Samsung C&T proposed 'Raemian One Pentas' to the Shinbanpo 15th Association (Photo by Samsung C&T)

[Asia Economy Reporter Moon Jiwon] Samsung C&T, ranked first in domestic construction capability evaluation, has succeeded in winning the contract for the Sinbanpo 15th reconstruction project in Banpo-dong, Seocho-gu, Seoul, raising expectations that competition among major construction companies over construction rights for redevelopment projects will intensify further.

According to the industry on the 24th, Samsung C&T was selected as the new construction company at the second joint briefing and regular general meeting of the Sinbanpo 15th reconstruction association held the day before. Despite returning after five years since winning the integrated reconstruction of Sinbanpo 3rd and Gyeongnam Apartments in Banpo-dong in 2015, it received overwhelming support from 166 out of 181 total association members (76%).

The industry analyzes that this winning result proves that the company's 'Raemian' brand power has not weakened at all despite the long hiatus. A Samsung C&T official also explained, "It has been proven that the apartment brand value of the construction company and project management capabilities are important in reconstruction complexes in Gangnam such as Banpo."

In particular, this contract win is expected to bring significant changes to the redevelopment and reconstruction contract landscape in Gangnam and central urban areas in the future.

As Samsung C&T officially signals its comeback, competition among construction companies surrounding the housing market is likely to become even fiercer. Samsung C&T is currently competing with Daewoo Engineering & Construction for the construction rights of Banpo-dong Jugong 1st Complex 3rd District, in addition to Sinbanpo 15th. Competitors are also highly tense about Samsung C&T's return, as overseas orders are expected to be challenging for the time being due to the global economic downturn caused by the COVID-19 pandemic, and they are putting all their efforts into expanding redevelopment projects.

Notably, Samsung C&T mobilized the capabilities of its affiliates such as Samsung Electronics, Samsung SDS, S-1, and Samsung Welstory during this contract process. Samsung C&T proposed cutting-edge smart technologies such as the 'A.IoT platform,' which connects autonomous driving robots and the Internet of Things (IoT) with artificial intelligence (A.I) to provide a customer-tailored environment. This suggests that the group has been preparing a Raemian comeback scenario at the corporate level.

An industry insider said, "If the group’s full support is backed, Samsung’s brand power in the redevelopment contract market could pose a greater threat to competitors than in the past."

Meanwhile, the Sinbanpo 15th complex, which Samsung C&T won this time, will be reborn from the existing eight buildings of five floors with 180 households to six buildings ranging from four basement floors to 35 above-ground floors with 641 households. The new complex name proposed by Samsung C&T is 'Raemian One Pentas.' The construction cost is around 240 billion KRW. Lee Young-ho, president of Samsung C&T, emphasized, "We will keep 100% of our promises and make Raemian One Pentas the brightest complex at the center of Banpo."

This content was produced with the assistance of AI translation services.