'Expanded' Remodeling Market Reaches 19 Trillion Won... All Major Construction Companies Participate

Expansion to 44 Trillion KRW Expected by 2030
Currently, SK Ecoplant and Hanwha Construction Achieve First Sole Contract Wins
Construction Companies Ranked Within Top 11 Enter Remodeling Business

SK Ecoplant successfully secured the exclusive remodeling contract for the Triece Apartment in Suji, Yongin on the 1st. The photo shows a bird's-eye view of the Triece Apartment remodeling in Suji, Yongin. Photo by SK Ecoplant

[Asia Economy Reporter Cha Wanyong] The apartment remodeling market is experiencing rapid growth. This year, it is expected to expand to a scale of 19 trillion won (based on order amount), more than double that of last year.

As the market grows, competition among construction companies for remodeling contracts is intensifying. In particular, construction companies that previously only participated partially in consortiums due to insufficient remodeling construction technology have now secured the necessary skills and are successfully winning contracts independently.

According to the Korea Remodeling Association on the 3rd, the volume of apartment remodeling orders this year is estimated to reach 19 trillion won. Considering that the order volume was 1.3 trillion won in 2020 and about 9.1 trillion won last year, this represents a clear upward trend.

The Seoul Metropolitan Government is also supporting the expansion of the remodeling market. Recently, Seoul passed an amendment to the ‘Seoul Metropolitan Government Basic Plan for Apartment Remodeling,’ which allows apartment associations to receive floor area ratio incentives if they improve infrastructure or install community-friendly facilities at project sites, thereby promoting apartment remodeling.

Accordingly, the Korea Construction Industry Research Institute forecasts that the remodeling market size will expand to 37 trillion won by 2025 and 44 trillion won by 2030.

As the remodeling market grows, construction companies are forming dedicated remodeling teams and actively engaging in the sector. Recently, even construction companies that had previously been hesitant about remodeling projects have stepped forward, with all construction companies ranked within the top 11 in construction capability evaluations now participating in remodeling projects. Until now, companies such as Hyundai Engineering (ranked 6th), SK Ecoplant (10th), and Hanwha Construction (11th) had no record of winning remodeling contracts independently.

First, SK Ecoplant was selected as the construction company at the general meeting for the selection of the contractor for the Yongin Suji Triece Apartment remodeling project held on the 1st. This is their first independent contract since entering the remodeling market in May by winning the remodeling construction rights for Incheon Bugae Jugong Complex 3 in a consortium with Ssangyong Construction.

Hanwha Construction was selected as the sole contractor at the general meeting for the Yeomchang Muhak Apartment remodeling project held on the 24th of last month. This achievement came after launching a dedicated remodeling team in January. Hanwha Construction plans to actively pursue related project orders, anticipating continuous growth in the remodeling sector.

Hyundai Engineering succeeded in winning its first independent remodeling contract by being selected as the final contractor at the general meeting for the Yongshin Suji Samsung 1st Apartment remodeling project held on the 23rd of last month. At the end of last year, they upgraded their remodeling task force under the Urban Maintenance Sales Office to a remodeling sales team and have been actively expanding their remodeling business.

An industry insider commented, “Remodeling projects have advantages over reconstruction and redevelopment in that they are subject to relatively fewer regulations and have shorter construction periods, allowing companies to secure many projects in a short time. As construction companies enter this market, its scale is expected to grow even further.”

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