Major domestic builders have set their sights on a new revenue stream: projects that upgrade community facilities, exteriors, and interiors instead of redevelopment or remodeling, which face heavy regulation and complex procedures. Apartments in Gangnam completed in the 2000s are the targets.
According to the construction industry on the 10th, Samsung C&T's construction division and Hyundai E&C are pushing a new business of complex renewal that keeps existing apartment structures while upgrading residential performance to the level of new builds.
Samsung C&T introduced "Next Remodeling" on the 1st, which applies the product strengths of its Raemian dwelling brand to complex renewal to improve interior and exterior design while using existing frames and to implement smart services that enhance quality of life.
Next Remodeling is a project that upgrades performance to new-apartment levels without demolition for apartments whose social functions—such as robot service infrastructure and wellness community offerings—have aged, ahead of physical benchmarks like the redevelopment age limit.
For this project, Samsung C&T signed MOUs with organizations including the Korea Institute of Civil Engineering and Building Technology and LX Hausys, and is continuously expanding a network to integrate future technologies such as smart homes, eco-friendly materials, energy savings, and automated parking by identifying promising startups. It plans to realize a more advanced smart home environment by combining this with its in-house residential platform, Homeniq.
Hyundai E&C also said in June that it would pursue a "residential environment improvement new business" to raise the quality of life and asset value of aging apartments without relocation. The project renews old complexes without relocation to achieve new-build-level residential quality and premium value.
For common areas, Hyundai E&C plans to upgrade exteriors such as outer walls, main-building entrances, landscaping, and community spaces. Because it will apply advanced technologies—including underground parking systems, electric-vehicle fire prevention systems, and smart access control—residents will not need to relocate. For individual units, interior work including inter-floor noise reduction structures, high-performance windows, Hi-oT-based systems, and energy-saving facilities will be applied only to households that wish to proceed.
Because both companies' new businesses retain building structures, they can shorten permitting timelines such as safety reviews. Construction can also be completed within two years, cutting project durations—which typically take about five years—by more than half. The absence of demolition of existing buildings is also cited as an advantage, conserving resources and minimizing safety risks.
Builders plan to target apartments built in the 2000s with this new business. While apartments built after the 2000s are higher-spec than earlier complexes, their service levels lag behind new complexes, and with redevelopment or conventional remodeling difficult going forward, there is no alternative beyond partial repairs. Many complexes realistically cannot push forward with existing renewal projects due to various regulations—such as the redevelopment age limit, safety diagnosis requirements, and floor area ratio caps—and high cost sharing.
According to Statistics Korea, as of 2023, 5.93 million households—47% of the nation's 12.63 million apartment households—are in complexes completed 20 or more years ago. Among them, 3.8 million households (30% of the total) are in complexes 20 years to less than 30 years after completion, and 2.14 million households (17% of the total) are in apartments 30 years or more after completion. In other words, the share of complexes over 20 years and under 30 years after completion is larger than that of complexes 30 years or more after completion, the threshold for redevelopment.
In particular, the apartment complexes where this project will be piloted are mainly in Seoul's Gangnam and Yongsan. On the 27th of last month, Samsung C&T also partnered with 12 complexes completed in the early to mid-2000s in cities including Seoul, Busan, Daegu, and Gwangju; of these, nine are in Seoul's three Gangnam districts (Gangnam, Seocho, Songpa) and Yongsan District. In June, Hyundai E&C signed a new business agreement to create a premium residential complex with Hillstate Complex 2 in Samseong-dong, Gangnam District, Seoul.
The renewal industry expects this could drive changes in Korea's residential culture over the mid to long term. Analysts say the residential improvement market will expand beyond simple facility replacements to reflect the latest lifestyles and environmental and safety standards. Demand is seen as particularly strong for the two builders' complex improvement projects centered on Gangnam apartments from the early to mid-2000s.
A person in the renewal industry said, "Complexes for which redevelopment or remodeling carries heavy expense and procedural burdens will form the customer base for Hyundai E&C and Samsung C&T's new businesses, such as expanding community facilities and improving complex landscaping and exteriors," adding, "The two builders will leverage brand power and technology to compete for market leadership."
A real estate industry official said, "Residents of Gangnam-area apartments built in the 2000s, when the real estate market's vigor faded after the Banpo and Apgujeong redevelopment, are responding enthusiastically," adding, "If apartment residential environments improve without going through a renewal project, it could lead to an increase in asset value, making it popular in the Gangnam real estate market."