Samho and Goryeo Development Merger 'Daelim Construction' Launches on July 1... Aiming for Top 10 by 2025

[Asia Economy Reporter Onyu Lim] Daelim Construction, the merged company of Samho and Goryeo Development, will officially launch on the 1st of next month. On the 30th, Daelim Construction stated, "We aim to enter the top 10 construction companies by 2025 by strengthening the competitiveness of the existing companies and maximizing management synergy through the merger."

This merger was promoted to proactively respond to changes in the construction market environment and to focus on fostering the developer business, which is being nurtured as a new growth engine of the group. Recently, the construction market has been reorganizing around large construction companies as the credit rating and brand of construction companies are evaluated as core competitiveness.

Accordingly, Samho and Goryeo Development decided to merge to realize economies of scale and lay the foundation for sustainable growth. While further strengthening competitiveness centered on core businesses, they plan to organically combine the expertise of both companies to leap forward as a large construction company promoting the developer business.

Samho and Goryeo Development are construction affiliates within the Daelim Group, ranked 30th and 54th respectively in the construction capability evaluation as of last year. Samho was established in 1956 and has steadily supplied housing since the 1970s. Recently, it has been recognized for its construction capabilities across the entire architectural business, including logistics centers and hotels.

Goryeo Development was founded in 1965 and specializes in civil engineering fields such as highways, high-speed railroads, bridges, and ports. Through this merger, Daelim Construction will possess competitiveness across housing, architecture, and civil engineering, and it is expected to enter around 16th place in this year’s construction capability evaluation.

Based on its expanded scale, Daelim Construction plans to pioneer new markets such as metropolitan area urban renewal projects, data centers, large social overhead capital (SOC) projects, and global developer businesses, which are markets centered on large construction companies.

Following this merger, Daelim Construction has reorganized its organization to expand orders, enhance execution competitiveness, and improve innovation capabilities. While maintaining a three-division system consisting of the Architecture Business Headquarters, Civil Engineering Business Headquarters, and Management Innovation Headquarters, it has strengthened the urban renewal and architectural business order organizations and newly established an organization to promote civil infrastructure development projects. Additionally, it has established an ‘Innovation School’ directly under the CEO to focus on expert training and created an Outsourcing Co-prosperity Team to promote mutual growth activities with partner companies.

Daelim Construction is expected to achieve sales of 2 trillion KRW and operating profit of over 200 billion KRW this year. By 2025, it plans to achieve sales of 3.5 trillion KRW and operating profit of over 400 billion KRW and leap into the top 10 construction companies.

Namchang Cho, appointed as the first CEO of Daelim Construction, said, “The construction industry is entering a mini ice age, and polarization is intensifying as the market share of large companies continues to increase, making fundamental change inevitable. Our goal is not just to rise in contract rankings but to solidify the business foundation as a sustainable global developer.”

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