What Is the Relationship Between High-Rise Apartments and the Urethane Waterproofing Market?

"Built 10 Buildings of 15 Floors, Now 3 Buildings of 40 Floors... Rooftop Waterproofing Area Reduced"
Waterproofing Reinstallation Demand Increases in Apartment Complexes Affected by Hinnamnor and Nanmadol

The rooftop of a building coated with urethane waterproofing, symbolizing the 'green rooftop.'
[Photo by Noroo Paint].

[Asia Economy Reporter Kim Jong-hwa] 'Did the typhoon save the waning urethane waterproofing market?'

Recently, the urethane waterproofing market, which had been gradually shrinking, is showing signs of revival. This is because orders for urethane waterproofing are continuing from apartments that suffered flood damage due to Typhoons Hinnamnor and Nanmadol.

As apartment construction trends have changed, the volume of urethane waterproofing, once represented by "green roofs," has been decreasing by about 5% annually. The industry explains that the shrinking waterproofing market, which accounts for 20-30% of architectural paint sales by major paint companies, poses a considerable burden on the sector.

The cause is the change in trends for newly built apartments. Recently, new apartments have moved away from the uniform design of 15-story matchbox-shaped buildings, preferring high-rise buildings over 30 stories or unique designs that offer advantages in sunlight and views. The industry analyzes that this trend negatively affects the waterproofing market. An industry insider said, "In the past, if 10 buildings of 10-15 stories were constructed, nowadays it is common to build 3-4 buildings of 30-40 stories. While the amount of paint used for interior and exterior surfaces has not changed significantly, the rooftop area has decreased, reducing the waterproofing area and thus the amount of urethane waterproofing used."

Waterproofing systems have also advanced. Newly built apartments mostly apply waterproof sheets on the rooftop and then either paint separately or apply additional concrete in a concealed waterproofing method. New technology has taken the place of the exposed waterproofing method, represented by green urethane waterproofing. Recently, reconstruction projects in first-generation new towns such as Ilsan and Bundang have also contributed to reducing demand for rooftop waterproofing repainting work. As a result, demand for repainting construction in the first half of this year dropped to half of last year's level, and performance remained at a low point even until mid-October, when the autumn season should have been in full swing.

In this situation, news of flooding caused by the autumn rainy season and Typhoons Hinnamnor and Nanmadol spread, and demand for waterproofing reapplication increased mainly in aging apartment complexes, making the industry busy for the first time in a while.

The domestic waterproofing market size is estimated to be about 360 billion KRW as of last year. The top five companies?Noru Paint, KCC, Samhwa Paint, Gangnam Jevisco, and Jokwang Paint?account for 90% of the entire waterproofing market, with small and medium-sized companies competing for the remaining 10%. Noru Paint competes with its main waterproofing product ‘Eco Clean Tan,’ KCC with ‘Spotan KS1-type Waterproofing (Premium),’ and Samhwa Paint with ‘Green Waterproof Master.’

The industry expects this year's sales to increase by 11% from last year to about 400 billion KRW, due to unexpected demand caused by typhoons in the autumn season and the base effect of product price increases. An industry insider said, "Orders have increased late in the autumn season due to the typhoon impact, and the volume is expected to be similar to last year. However, sales will increase due to the price hike effect."

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