IPARK Hyundai Development Company Reports Q1 Operating Profit of 80.1 Billion Won, Up 48% Year-on-Year

Reorganizing Business Portfolio in Celebration of 50th Anniversary
Accelerating Qualitative Growth Driven by AI and Digital Technologies
Securing Distinctive Product Competitiveness Unique to IPARK

The construction industry has recently been undergoing rapid changes, driven by artificial intelligence (AI) and digital technologies. Companies are integrating new technologies throughout every stage of their business processes to meet market demand for safer and higher-quality residential environments, thereby driving innovation. IPARK Hyundai Development Company has been expanding its influence with differentiated competitiveness by adopting digital twin technology for efficient process management, strengthening the functions of its integrated CCTV control center to enhance construction efficiency, and introducing AI-powered technologies such as generative AI-based voice recognition wall pads, covering both the construction phase and post-completion services.

Marking its 50th anniversary, the HDC Group is undertaking a major restructuring of its portfolio to secure future growth engines, focusing on three core sectors: LIFE, AI, and ENERGY. As part of this restructuring, the group is also revamping its brand system. Subsidiaries in the LIFE business sector will now use "IPARK" as the primary brand, instead of "HDC." Accordingly, the company name has been changed to IPARK Hyundai Development Company, with plans to clarify the expertise of each business unit moving forward.

Performance Improvement Amid Construction Market Slowdown: Achieving Both Profitability and Stability

Perspective view of the commercial facility at 'Park Roche Seoul One' in Nowon-gu, Seoul. IPARK Hyundai Development Company

IPARK Hyundai Development Company announced on the 27th that its consolidated operating profit for the first quarter of this year was provisionally tallied at 80.141 billion won, a 48.4% increase from the previous year. Sales reached 673.945 billion won, and net profit was 49.293 billion won. The operating margin stood at 11.9%, returning to double digits for the first time in about five years since Q2 2021. Last year, the company reported consolidated sales of 4.147 trillion won and an operating profit of 248.6 billion won. Operating profit increased by 64 billion won year-on-year, significantly improving profitability. The main drivers of this profitability recovery were the recognition of revenue from large-scale projects such as Seoul One IPARK, Cheongju Gagyeong IPARK 6th Complex, and Suwon IPARK City 11·12 Complex. The company plans to continue stable financial statement management through rigorous cost control, process optimization, and crisis management.

IPARK Hyundai Development Company also demonstrated solid performance in orders and supply last year, proving its ability to conduct stable business despite uncertainties such as high interest rates and rising raw material prices. New orders last year amounted to 5.8304 trillion won, achieving 124% of the guidance, while supply reached about 11,000 units, including Unjeong IPARK Forest, Cheonan IPARK City 2nd Complex, and Changwon Central IPARK.

The company also achieved remarkable results in the urban renewal sector. It secured consecutive contracts for large-scale redevelopment projects, including the Site 1 Redevelopment Project of the Yongsan Rail Yard and the Daejeon Byeondong A District Redevelopment Project, bringing its cumulative order value in this sector to 4.8012 trillion won. Additionally, by winning the bid for the Incheon Gulpocheon Station Complex Project, the company demonstrated its competitiveness in public-led urban complex development projects.

Building on last year’s achievements in business structure improvement focused on profitability and stability, the company plans to enter a full-fledged growth phase this year. This year, it expects growth from increased revenue in its own development segment, such as Seoul One and Cheongju Gagyeong IPARK, and from the commencement of large-scale projects. It also aims to secure large-scale urban renewal orders, leveraging last year’s industry-leading order target achievement rate. Accordingly, IPARK Hyundai Development Company has set guidance for this year at 4.2336 trillion won in sales and 6.5311 trillion won in new orders.

Enhancing Product Competitiveness: Strengthening Unique Spatial Value of IPARK

This year, the company will enhance the unique spatial value of IPARK by integrating design, technology, and content. The plan is to improve the completeness of residential products through a convergent development process that connects all stages from planning to design, construction, and operation.

Most notably, Seoul One is a large-scale mixed-use development project that combines residential, work, and cultural spaces, with planning and operations all being managed directly by the company. Parkrosh Seoul One, scheduled for launch in the first half of this year, will feature services related to healthcare, robotics, and food and beverages (F&B), providing residents with a differentiated living environment.

The healthcare services at Parkrosh Seoul One are designed to continuously monitor residents’ health within their living spaces. Based on a healthcare system linked to Asan Medical Center, biometric data collected via wearable devices will be analyzed to track key health indicators such as heart rate, activity levels, and sleep patterns. This allows for early detection of abnormalities and, if necessary, enables rapid medical response through 24-hour emergency room linkage.

By comprehensively analyzing each resident’s lifestyle and health data, the company provides personalized health consulting, including customized diet, exercise, and sleep management. Specialists in each field are available on-site to operate individualized rehabilitation programs, and a variety of preventive health management programs, such as therapy massage and wellness yoga, have been implemented to create a systematic, prevention-focused health management environment.

A representative from IPARK Hyundai Development Company stated, "The main feature is the seamless integration of digital-based healthcare into residential spaces, enabling natural health management in daily life. We plan to continue expanding lifestyle-focused residential services that enhance the quality of life for residents by incorporating various digital smart technologies."

Advancing Technological and Construction Capabilities: AI-Based New Technologies and Smart Site Operations

IPARK Hyundai Development Company is strengthening both process management and quality competitiveness by utilizing new technologies as well as AI and digital technologies at each stage of construction. The company also plans to further refine its cost management system by improving conventional construction methods and expanding the use of precast concrete (PC) methods to determine optimal construction periods.

Having supplied over 500,000 households, the company is upgrading its on-site operation systems based on its extensive field experience, while also improving the efficiency of manpower allocation. This approach aims to secure capabilities for executing complex projects, ensuring site safety, and enhancing construction quality simultaneously.

Additionally, the company is gradually expanding the application of drone-based site management nationwide, enabling precise documentation of sites. Currently, drone systems are being utilized at Seoul One IPARK, City OCL 7th Complex, Iksan Busong IPARK, and Hohyeon Central IPARK. At these sites, virtual environments are used to calculate area and volume, allowing for the prediction of required foundation materials, and overlaying blueprints onto virtual models to compare the positions of piles and columns, thereby enhancing construction precision and overall process efficiency.

Having proven the effectiveness of drone-based site management in monitoring blind spots and cost management through simulation, the company plans to continue building a data-driven site management system to further improve process efficiency and site safety.

Expanding Development and Investment Models: Full-Scale Large-Scale Mixed-Use Development

IPARK Hyundai Development Company plans to respond strategically to key project sites this year, centered on its dedicated order-winning organization. In particular, leveraging its vision for town management, the company is reviewing areas that can be linked with major sites such as Seoul One and Site 1 of the Yongsan Rail Yard redevelopment project. By proposing products that can be connected with premium residential services, the company aims to further strengthen its capabilities as a developer that creates and operates unique spaces.

In January of this year, the company secured the contract for Section 3 of the South Inland Railway (Gimcheon~Geoje) construction project, involving roadbed installation and related works, marking a significant step toward national balanced development. Having demonstrated stable execution capabilities in the infrastructure sector, the company plans to continue winning orders across diverse segments beyond housing. Building on its accumulated expertise in social infrastructure, the company envisions expanding its influence to national core infrastructure projects such as ports and expressways. Through the Namsan Square project, it also plans to enter the high-difficulty urban mixed-use building repurposing and remodeling market, continuing its pursuit of new business models.

A representative from IPARK Hyundai Development Company stated, "By organically combining our capabilities in products, technology, and development, we will further solidify our position as a developer that creates new value for cities through large-scale mixed-use development. We will also actively utilize AI-based technologies on-site to strengthen safety and quality control, while further enhancing the IPARK brand value."

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