Hanwha's construction division said on the 11th that it has expanded strategic cooperation with financial institutions to strengthen competitiveness in real estate development.
Hanwha's construction division signed a memorandum of understanding (MOU) for "joint promotion of real estate development projects" with Kiwoom Securities, Korea Investment & Securities Co., and Samsung Securities at the Hanwha Building in Janggyo-dong, Jung-gu, Seoul, at the end of last month. Following earlier cooperation with Mastern Investment Management, it signed additional agreements with securities firms, strengthening its financial partnerships.
The agreement was pursued to move beyond the existing order-taking structure centered on construction and to establish a proactive project-sourcing system that combines finance and development. Each company plans to continue cooperation to advance quality projects, from sourcing new development projects to establishing joint entities.
Hanwha's construction division will build a collaborative system with securities firms across the entire development process, from initial planning to post-completion operations. Hanwha's construction division will handle design and construction, while the securities firms, leveraging their real estate finance expertise, will be responsible for financial risk management and advisory services, as well as funding and investment.
Through this agreement, it expects to manage risk from the project-structure design stage and improve profitability, based on a decision-making system that combines finance and construction.
Yoon Sung-ho, head of development at Hanwha's construction division, said, "We will build a stable project structure based on the combination of finance and construction and continue to strengthen the foundation for sustainable growth."