Kumho Engineering & Construction diversifies building portfolio, from parking towers to semiconductor plants

Kumho Engineering & Construction is expanding the scope of its building contracts to cover multipurpose parking towers, mixed-use urban redevelopment and advanced industrial facilities.

The company said Thursday that it had recently won a series of contracts. They include the Kintex multipurpose parking building project, the Jangji bus depot redevelopment project and the construction of Samsung Electronics' Fläkt Korea factory. Kumho said it was broadening its building business portfolio beyond its traditional focus on residential and mixed-use development to include advanced industrial facilities.

The Kintex multipurpose parking building project involves building a parking facility with one below-ground floor and eight above-ground floors in the Daehwa-dong area of Ilsanseo-gu, Goyang, Gyeonggi Province. Kumho was selected as the final winning bidder for the project on Aug. 31. The total construction cost, including value-added tax, is about 56.3 billion won ($42.1 million), and Kumho will serve as the lead contractor with a 60 percent stake.

The project was awarded through a comprehensive bid evaluation system that weighs price and technical capability, among other factors. Construction is set to break ground this month and be completed in November 2028.

In the mixed-use urban redevelopment sector, Kumho won the Jangji bus depot redevelopment project in July. Commissioned by the Seoul Housing & Communities Corporation, the project has a total construction cost of about 350.6 billion won. Kumho is participating as the lead contractor, holding a 50 percent stake.

The Jangji bus depot redevelopment project will maintain the existing Jangji public bus depot's function while adding 658 units of public housing along with lifestyle infrastructure and green space. The project combines transportation facilities with residential and lifestyle functions in a single complex.

In the advanced industrial facilities sector, Kumho signed a construction contract with Samsung Electronics last month for the Samsung Electronics Fläkt Korea factory. The project involves building a domestic production facility for the German Fläkt Group, which Samsung Electronics has acquired.

The Samsung Electronics Fläkt Korea factory will be built in Buk-gu in the South Jeolla-Gwangju Integrated Special City, with one above-ground floor and 23,588 square meters of total floor area. The facility will house a main HVAC (heating, ventilation and air conditioning) production plant along with office space, warehouses, laboratories and rest areas.

HVAC systems integrate the management of heating, cooling, ventilation and air quality, and are used in advanced industrial facilities such as AI data centers and semiconductor plants. Kumho said it plans to participate in the growing demand for related production facilities and infrastructure as investment in advanced industries such as AI and semiconductors expands.

"We have continued to post contract wins across a range of building sectors of late, expanding our business portfolio," a Kumho Engineering & Construction official said. "We will strengthen our competitiveness in existing core sectors while expanding into high-growth areas such as advanced industrial facilities to secure new growth engines for our building business."

Meanwhile, Kumho Engineering & Construction has been drawing market attention amid growing expectations over the government's push to break ground early on a semiconductor cluster in the Honam region. Although the company's headquarters is in Seoul, its registered head office is in Naju, in the South Jeolla-Gwangju Integrated Special City. That makes it a leading construction company in the Honam region. Its share price has surged of late as a result.