"Catch the Big Fish" Construction Industry's Q4 Order Battle

Reconstruction of Ichon-dong Hangang Mansion
Redevelopment of Gwanak-gu Sillim 1 District, etc.
Major Contract Battles Continue
Fierce Competition for Top Contract Position

[Asia Economy Reporter Kim Hyemin] In the fourth quarter of this year, redevelopment and reconstruction sites in the Seoul metropolitan area are consecutively selecting construction companies, heating up the competition among construction firms for orders. Major projects with construction costs ranging from at least 100 billion KRW to up to several trillion KRW are lined up. Currently, the gap in order amounts among the top four large construction companies is less than 200 billion KRW, indicating fierce competition for the top spot.

According to the maintenance industry on the 1st, at least eight maintenance projects in Seoul are currently in the process of selecting construction companies or planning to do so. Representative projects include ▲Sillim 1 District Redevelopment in Gwanak-gu ▲Hangang Mansion Reconstruction in Yongsan-gu ▲Baeksamaeul Redevelopment in Nowon-gu ▲Wolgye-dongshin Reconstruction in Nowon-gu ▲Noryangjin 5 District Redevelopment in Dongjak-gu ▲Macheon 4 District Redevelopment in Songpa-gu ▲Gaepo Hanshin Reconstruction in Gangnam-gu, Seoul.

The most attention-grabbing project is the Hangang Mansion Reconstruction in Ichon-dong, Yongsan-gu, Seoul. As a symbolic complex representing Dongbu Ichon-dong, and having recently received project implementation approval, the selection of a construction company is accelerating. The association plans to announce a bidding notice next month aiming to select a construction company within this year. The construction cost is approximately 600 billion KRW, with GS Construction and Samsung C&T actively expressing their intention to participate.

The Sillim 1 District Redevelopment in Gwanak-gu is a large-scale project with construction costs reaching 1 trillion KRW. After a consortium of three companies?GS Construction, DL E&C, and Hyundai Engineering & Construction?participated alone and the first bid failed, residents expressed discomfort with the consortium, leading to discussions about restricting consortium participation. However, it was ultimately decided not to impose restrictions and to proceed with a second bidding. The association plans to issue a second bidding notice soon and resume the selection of a construction company.

The Baeksamaeul Redevelopment project in Junggye-dong, Nowon-gu, known as the last hillside neighborhood in Seoul, plans to receive bid proposals by the 5th and select a construction company on the 30th. With construction costs of about 580 billion KRW, major construction companies such as Hyundai Construction, GS Construction, POSCO Construction, Daewoo Construction, as well as mid-sized companies like Kolon Global and Hanyang, all participated in the site briefing held in August, showing strong interest.

The Noryangjin 5 District Redevelopment project in Dongjak-gu, whose bidding closed on the 16th of last month, is expected to be a two-way contest between Daewoo Construction and Ssangyong Construction. The association will hold a general meeting on the 29th to finalize the construction company. The Wolgye-dongshin Apartment Reconstruction project in Nowon-gu, with an estimated construction cost of about 282.6 billion KRW, announced its bidding notice on the 28th of last month and has begun the formal selection process. Additionally, in Gyeonggi Province, competition among construction companies is fierce over the Gwacheon Jugong 5 Complex Reconstruction project.

Whoever secures the construction rights for the maintenance projects in the fourth quarter is expected to determine the top spot in construction orders. Currently, GS Construction holds first place with a total accumulated order amount of 2.7394 trillion KRW, on the verge of entering the 3 trillion KRW club. Following closely is DL E&C with 2.6587 trillion KRW. The gap with the 3rd to 5th places?POSCO Construction (2.516 trillion KRW), Hyundai Construction (2.5594 trillion KRW), and Daewoo Construction (2.1638 trillion KRW)?is also not large.

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