19 Trillion Apartment Remodeling Big Market 'Mixed Fortunes'

Prehistoric Modern Apartment Remodeling Project Sky Lounge

Competition among construction companies is intensifying over the apartment remodeling market, which is expected to rapidly grow to a scale of 19 trillion won this year. The results of last year's large-scale organizational restructuring and technological development are gradually becoming apparent.

According to the Korea Remodeling Association and the construction industry on the 25th, the order amount for the apartment remodeling market this year is estimated to reach 19 trillion won. Considering the levels of 1.3 trillion won in 2020 and 9.1 trillion won in 2021, the growth rate is explosive. Until now, the remodeling market was regarded as a major revenue source for mid-sized construction companies, but recently, large companies have also designated it as a 'future revenue source' and are mobilizing all their capabilities.

Apartment remodeling is subject to less stringent regulations compared to reconstruction. Unlike reconstruction, which involves 'complete demolition followed by extension,' remodeling is an urban maintenance project that involves 'demolition and extension while retaining the existing framework.' The age criterion is shorter at 15 years compared to reconstruction (30 years after completion). Unlike reconstruction, which requires a safety grade of D, remodeling only requires a B grade (vertical extension) to C grade (horizontal extension). The consent rate for establishing associations is relatively low, and it is not subject to donation or excess profit recovery systems. The new government has also announced plans to ease remodeling regulations, further raising expectations.

The number of project sites is also rapidly increasing. According to the '2025 Seoul Metropolitan City Apartment Remodeling Basic Plan Revision,' among 4,217 complexes in Seoul, 878 are expected to undergo reconstruction, 898 are expected to have unit-increasing remodeling, 2,198 customized remodeling, and 243 general maintenance complexes. Among these, 3,096 apartment complexes that have passed 15 years since completion are expected to undergo remodeling, accounting for 73.4% of the total. Park Yong-seok, senior research fellow at the Korea Construction Industry Research Institute, said, "Recently, remodeling association establishments have surged mainly in Seoul and Gyeonggi Province, and apartments are expected to become the core sector of the remodeling market."

However, last weekend brought mixed fortunes among companies. The Lotte Construction-Hyundai Construction consortium (Landmark Project Group) won the remodeling project for Seonsa Hyundai Apartment in Gwangjin-gu, Seoul, on the 23rd, marking the largest remodeling project in domestic history. The large complex, with a site area of approximately 68,996 square meters and 2,938 households in buildings ranging from three basement floors to 28 above-ground floors, will be transformed through horizontal extension remodeling into a residential complex with 16 buildings and 3,328 households ranging from five basement floors to 29 above-ground floors. On the other hand, HDC Hyundai Development Company (HDC), struggling in the reconstruction market due to the aftermath of the Gwangju collapse accident, also suffered setbacks in the remodeling market. The Gwangjang Sangnok Tower remodeling association in Gwangjin-gu, Seoul, held an extraordinary general meeting of members on the 23rd and passed a motion to terminate the construction contract with HDC. This is the first case where HDC lost the construction rights in a remodeling project.

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