Top 5 builders' urban renewal contracts top W35tr, with 10 trillion more on the line

South Korea's five largest construction companies have secured more than 35 trillion won ($26.1 billion) in urban renewal contracts this year, surpassing their combined full-year totals from last year. The gains reflect a strategy of targeting large-scale projects while prioritizing profitability over volume. With contractor selections worth more than 10 trillion won still pending in Mokdong, Seongsu and Yeouido before year-end, competition among builders chasing record annual figures is expected to grow fiercer.

Combined urban renewal contract awards this year through Tuesday for Samsung C&T, Hyundai Engineering & Construction, GS Engineering & Construction, Daewoo Engineering & Construction and DL E&C — ranked in order of construction capacity — totaled 35.7 trillion won, according to industry data released Wednesday. That exceeds last year's full-year combined total of 33.55 trillion won by 2.15 trillion won, or 6.40 percent.

The backlog is expected to grow further as major Seoul redevelopment and reconstruction sites push to select contractors before year-end. Construction costs for four projects alone — Mokdong complexes 4, 8, 12 and 13, considered the largest reconstruction sites in Seoul's southwestern corridor — total 6.92 trillion won. Several other trillion-won projects remain on the calendar, including the Seongsu District 2 redevelopment (2.01 trillion won), the Yeouido Eunha and Samik apartment reconstruction (1.07 trillion won) and the Macheon District 5 redevelopment (1.11 trillion won).

Among individual companies, Hyundai Engineering & Construction leads with 13.33 trillion won secured across 10 projects this year. Its biggest wins include the Apgujeong District 3 reconstruction (5.56 trillion won) and the Mokdong Complex 10 reconstruction (2.61 trillion won). Hyundai E&C has also been named preferred negotiating partner for the Macheon District 5 redevelopment (1.11 trillion won); including that project, its cumulative total rises to 14.45 trillion won.

Samsung C&T recorded 10.47 trillion won across 11 projects, crossing the 10 trillion won threshold for the first time in the company's history. Key contracts include the Yeouido Sibeom apartment reconstruction (2.27 trillion won), the Apgujeong District 4 reconstruction (2.12 trillion won) and the Seongsu District 3 redevelopment (1.83 trillion won). Samsung C&T is currently focused on securing the Mokdong Complex 13 reconstruction, for which it has been named preferred negotiating partner. Adding that project — valued at 2.38 trillion won in construction costs — would bring its cumulative total for the year to 12.84 trillion won.

GS Engineering & Construction (5.55 trillion won) and Daewoo Engineering & Construction (5.07 trillion won) have each crossed the 5 trillion won mark. GS E&C, which won the Seongsu District 1 redevelopment (2.15 trillion won) among other projects, has among the most room to add contracts before year-end. The company has been named preferred negotiating partner for the Mokdong Complex 12 reconstruction and is also pursuing a negotiated contract for the Yeouido Eunha and Samik apartment reconstruction. Securing those two projects alone would push its cumulative total to 8.4 trillion won.

Daewoo Engineering & Construction's largest project this year is the Sangdo District 15 redevelopment, valued at 1.44 trillion won in construction costs. The company is also pursuing additional contracts before year-end, including the Mokdong Complex 8 reconstruction (1.11 trillion won), for which it is the sole bidder, as well as the Yeouido Hwarang apartment and Sinwol Siyeong apartment reconstructions. A company official said Daewoo E&C has strengthened its organizational structure to develop urban renewal as a core strategic business, and plans to expand contract wins next year with a focus on the Gangnam area.

DL E&C, which won the Mokdong Complex 6 reconstruction (1.29 trillion won), is mounting an all-out push in the final stretch of the year. The company is pursuing the Seongsu District 2 redevelopment, the Haan Jugong Complex 9 reconstruction in Gwangmyeong (930.9 billion won) and a mixed public-private housing project west of Jungdong Station (759.5 billion won). Winning all three would push its cumulative total past last year's full-year figure.

The Seongsu District 2 redevelopment, with a contractor selection scheduled for Nov. 21, is the pivotal project for DL E&C's year-end tally. Construction costs alone exceed 2 trillion won, and securing a foothold within the Seongsu strategic redevelopment zone carries significant symbolic weight. A company official said DL E&C is maintaining its strategy of selective, profitability-focused bidding, and plans to expand contract wins under its Acro brand while demonstrating the brand's competitiveness at key sites including Seongsu.

Lotte Engineering & Construction secured the Seongsu District 4 redevelopment (1.35 trillion won in construction costs) and other projects to reach a cumulative total of 4.01 trillion won this year, while Posco E&C locked in large sites including the Gwangmyeong Haan Jugong complexes 3 and 4 reconstruction (1.56 trillion won) to record 4.98 trillion won. Ipark Hyundai Development, which has won 2.21 trillion won in contracts this year, recently opened the "Mokdong Ipark Lounge" showroom as it focuses on the Mokdong Complex 11 contractor selection scheduled for next year.