Samsung C&T and Hyundai E&C, Korea's leading construction companies, are focusing on a housing improvement business that makes apartments more than 20 years old look like new homes. While redevelopment and reconstruction projects have involved tearing down buildings and putting up new apartments, this new business calls for repairing existing apartments without demolition. Without complex permits and with shorter construction periods, it has the advantage of improving the residential environment faster than redevelopment or reconstruction.
◇ Samsung C&T proposes next-generation remodeling without demolition
The "Next Remodeling," unveiled by Samsung C&T on Sept. 1, is a next-generation remodeling technique that upgrades the residential functions of old apartments to the level of new builds while keeping the existing building structure. Aimed at apartments built in the 2000s that are more than 20 years old, Samsung C&T plans to use the existing framework, completely refresh the interior and exterior design, and implement smart performance and services to create high-end apartments.
Next Remodeling shortens the permitting period because it does not require dangerous work such as frame dismantling, extensions, underground excavation, or foundation reinforcement. By using the existing structure, it eliminates structural work that takes up much of the construction period, reducing high-risk tasks and enabling completion within two years. Another strength is that residents can expect improved satisfaction and an increase in asset value to the level of the latest apartments.
Kim Sang-guk, head of the dwellings development division (vice president) at Samsung C&T, said, "Next Remodeling is the most rational solution to extend a building's life cycle," and emphasized, "Samsung C&T will fulfill the role and responsibility of a corporations that leads residential culture by proposing and establishing various regeneration models for aging residential complexes in the market based on advanced technology and product competitiveness."
◇ Renewing homes from the late 1990s to after 2000 that are still livable
Hyundai E&C has also launched a project to improve the residential environment of existing apartments. In Jun., Hyundai E&C signed a memorandum of understanding (MOU) for a "new business for residential environment improvement" with "Samseong-dong Hillstate Complex 2" in Samseong-dong, Seoul, and plans to begin renewal of the complex. Samseong-dong Hillstate Complex 2, which signed the agreement, was completed 18 years ago. It has common issues in aging complexes, such as parking lot leaks, old facilities, and a lack of community space.
Hyundai E&C plans to carry out the renewal by dividing it into common areas of the complex and the interiors of units. For the common areas, it will improve the exterior such as outer walls, main building entrances, landscaping, and community spaces, and apply advanced technologies such as underground parking systems, electric vehicle fire prevention facilities, and smart access control.
For interiors, for applicants only, it will carry out interior work that includes ▲ inter-floor noise reduction structures ▲ high-performance windows and doors ▲ energy-saving systems. A Hyundai E&C official said, "We plan to submit a proposal for renewal to the residents' representative council within this year."
Samsung C&T and Hyundai E&C are expanding their business scope through remodeling and renewal rather than traditional maintenance projects because there is strong demand for residential environment improvements, centered on apartment complexes built from the late 1990s to the early 2000s. According to Statistics Korea, as of 2023, 47% of the 12.63 million apartments nationwide are at least 20 years old. Of these, 3.8 million units (30%) are 20 to 30 years after completion.
These apartments are characterized by high structural stability and dense development that already meets urban planning floor area ratio standards. However, compared with recently built complexes, they lag in community facilities, landscaping, and inter-floor noise reduction technology. While complete demolition and rebuilding are difficult, many complexes require repairs, and builders plan to expand their business targeting such complexes.
For the "Next Remodeling" business, Samsung C&T has built partnerships with 12 apartment complexes completed in the early to mid-2000s in Seoul, Busan, Daegu, and Gwangju. In Seoul, ▲ Yeoksam Kumho Eoullim and Apgujeong Daewon Cantaville in Gangnam District ▲ Banpo Prugio, Seocho Raemian, Seocho IPARK, and Seocho ePyeonhansesang Phase 3 and 5 in Seocho District ▲ Garak Dongbu Centreville in Songpa District ▲ Ichon-dong Dongbu Centreville in Yongsan District signed agreements. Centum Sensibil in Busan, Raemian Beomeo in Daegu, and Daebang Nobland Phase 3 in Gwangju also partnered with Samsung C&T. Hyundai E&C also plans to expand its project sites going forward.
Lee Tae-hee, a research fellow at the Construction Industry Institute, said, "A business that carries out remodeling or renewal without relocation has the potential to grow significantly in the future market, so major construction companies are trying to pioneer this field," adding, "This type of business, which improves the residential environment without spending a lot of time and expense, should be encouraged not only as a new business for construction companies but also socially."
Lee Eun-hyung, a research fellow at the Korea Institute of Construction Policy, said, "As construction market conditions deteriorate, large construction companies are making efforts to discover new businesses," adding, "Samsung C&T and Hyundai E&C, as part of these efforts, are trying to develop resident-centered services that leverage the strengths of existing remodeling projects and avoid relocation or shorten construction periods."