This year, the whirlwind of Samsung C&T's 'Raemian' is sweeping through the reconstruction and redevelopment market. In the first quarter (January to March), Samsung C&T achieved 70% of its total contract target amount for the year. This represents a scale of orders similar to last year's annual total within just three months. The company is over 1 trillion won ahead of GS Engineering and Construction, which is in second place by order amount.
Among reconstruction and redevelopment associations, there is fierce competition to attach the Samsung C&T Raemian brand, and if Samsung C&T does not participate in a construction bidder, it leads to claims that the association's executives are incompetent. Industry insiders predict that Samsung C&T's dominance in the maintenance market, where it secures multiple prime sites, will continue for some time. The strong trust built on its powerful brand presence makes it difficult for other construction companies to break through Samsung's stronghold.
① Within three months, the total orders from last year were met... Associations that couldn't attract Samsung are in chaos
According to the maintenance industry on the 3rd, Samsung C&T secured a total of five maintenance projects in the first quarter, achieving an order amount of 3.556 trillion won. This is approximately 71% of Samsung C&T's target order of 5 trillion won for this year, set at the beginning of the year. Compared to last year's total maintenance order amount of 3.6398 trillion won, the difference is only 800 billion won. There is over a 1 trillion won gap with GS Engineering and Construction, which secured 4 projects worth 2.1949 trillion won, and over 2 trillion won difference with Hyundai E&C, which ranked second in construction capability evaluation, securing 2 projects worth 1.078 trillion won. An industry insider noted, 'When association members vote for the selection of construction companies, about 30% of almost every association can be considered a fixed vote for Samsung C&T Raemian.'
Associations that failed to attract Samsung C&T sometimes fall into confusion. The reconstruction maintenance project association for the Gaepo Jugong 6th and 7th complexes in Gangnam-gu, Seoul, conducted a bid for the selection of a construction company last month. However, it was disqualified due to Samsung C&T's absence, leading the association chair to send a group text message condemning Samsung C&T to its members, after which they received an official notice from Samsung C&T stating that 'if corrections are not made, legal action will be taken.'
② Leading design standards based on quality-driven brand power
Samsung C&T's popularity stems from the brand power of Raemian (来美安‧RAEMIAN), which has been maintained as a single brand for 26 years since its introduction in 2000. Raemian recorded first place in the apartment sector of the National Customer Satisfaction Index (NCSI) survey last year. Since the brand was introduced, it has never dropped below first place in annual surveys.
An insider in the sales industry said, 'Other construction companies use strategies to divide high-end brands from general brands, but Samsung has maintained a single brand strategy for over 20 years, meaning all apartments built by Samsung are treated as high-end. This is well-received by both association members and general buyers.' Residents of apartments chosen as high-end brands are pleased, but those in complexes labeled as general brands often feel disappointed, which is one reason for Samsung C&T's popularity.
Hyundai E&C and Hyundai Engineering have differentiated between the general brand Hillstate and the high-end brand The H. DL E&C and DL Construction also separate their general brand e-Pyunhan Sesang from the high-end brand Acro. Additionally, there are many cases where contracts are signed between affiliates for one brand to be constructed by another construction company. For example, there are both e-Pyunhan Sesang built by DL Construction and e-Pyunhan Sesang built by DL E&C.
Samsung C&T has also changed the guidelines for apartment design through leading research. During heavy rains in the monsoon season, Samsung C&T first applied a gravel drainage layer to the front of the upper basement to effectively drain groundwater. Previously, soil was piled directly on top of the upper basement or drainage pipes were installed only in some areas, but over time the drainage performance would degrade, making the new approach a corrective measure. This has been reflected in the revised civil engineering design guidelines of the Korea Land and Housing Corporation (LH) and has been used as a national design standard for 'drainage treatment of above-ground housing complexes' since 2020.
③ Finishing the construction even at a loss, low risk of lawsuits, mostly lead apartments
Samsung C&T is known for completing construction even at a loss. The 'Raemian One Pentas,' which opened in Banpo-dong, Seocho-gu, in June last year, is a representative example. Samsung C&T claims to have incurred a loss of 30 billion won from this project. The association approved an additional payment of 9.9 billion won, but some members opposed this. Nevertheless, the construction was completed on time, and the schedule for general sales and moving-in was finalized. The general sale price last July was 6,736,905 won per 3.3 square meters, setting the highest sale price record within the designated price limit. GS Engineering and Construction faced prolonged disputes over construction costs with Shinbanpo 4 District, while Hyundai E&C faced similar issues with Banpo Jugong Apartment Phase 1 and 2, 4 Districts, and Daecho 1 District, leading to legal claims after stopping the construction months before moving in.
An industry insider stated, 'Based on the trust from the Raemian brand and Samsung Group, the largest in the country, it is not feasible to hold moving in as a hostage to demand a bit more construction costs.' They added, 'Instead, from the beginning, it is essential to secure sites with the best location and the best business potential to create the leading apartments in the region.'
The insider also noted, 'At one point, Acro River Park in Banpo-dong recorded the highest price in the region, but the fact that Raemian One Bailey surpassed this is due to the market's trust.'