HS HWASUNG won two maintenance project contracts in Myeonmok-dong, Jungnang-gu, Seoul, consecutively since the beginning of this month. In terms of contract amount (total construction cost), this amount is close to 35% of the company's annual revenue last year. HS HWASUNG ranks 47th in the construction capability evaluation based on last year and is the largest construction company in Daegu. After winning a maintenance project in Myeonmok-dong last November, the company continued to secure another project in Myeonmok-dong this month, resulting in the development of over 1,000 housing units across three maintenance project sites in the area. HS HWASUNG's successful bid for a maintenance project in Seoul last November marked the first time in over 30 years since 1995.
According to the Financial Supervisory Service on the 13th, HS HWASUNG secured two maintenance project contracts in Myeonmok-dong on the 7th and 9th of this month. The maintenance project involves developing small-scale housing units to improve the residential environment while maintaining areas surrounded by roads, parks, rivers, and railroads known as the 'side street zone.'
On the 7th, HS HWASUNG won the 'Myeonmok-bon-dong 5 district side street maintenance project' for the area of 9,845.30 square meters at 109-18 Myeonmok-dong, which includes the construction of 317 housing units in a 24-story above-ground and 3-story underground apartment complex, along with community facilities. On the 9th, they also secured the 'Myeonmok-bon-dong 2 district side street maintenance project' in an area of 10,094.22 square meters in Myeonmok-dong, which will consist of 321 housing units in a 25-story above-ground and 3-story underground apartment complex with community facilities. The contract amounts for each project are 104.09 billion won and 108.41 billion won, respectively, totaling 34.7% of the company's annual revenue last year (612.78 billion won). Both districts are adjacent to Myeonmok Station on Seoul Subway Line 7.
HS HWASUNG has been continuously securing maintenance project contracts in Myeonmok-dong since last year. In November last year, they won the 'Myeonmok Station 2-5 district side street maintenance project' (total construction cost 68.936 billion won) and agreed to develop 267 housing units in a 10-story above-ground and 2-story underground apartment complex. Winning a maintenance project in Seoul marked HS HWASUNG's first contract in the area in 29 years since supplying the Shin-nae Hwasung Town (763 units) in Jungnang-gu, Seoul, in 1995. All the maintenance project sites secured this month, including this one, will be developed under HS HWASUNG's apartment brand, 'Park Dream.'
HS HWASUNG has invested effort over the years to secure maintenance projects in Myeonmok-dong. It has become practically difficult for local construction companies to win large maintenance project contracts with over 1,000 housing units in major locations like Gangnam, which serves as a strategy to target niche markets. A representative from HS HWASUNG noted, 'We have been making efforts to raise awareness of our brand by conducting events to show the condition of HS HWASUNG's apartments that have already been built in Daegu to the Myeonmok-dong maintenance project members,' and added, 'We hope this contract will further popularize the HS HWASUNG brand in the Seoul area.'
Lee Eun-hyung, a research fellow at the Korea Construction Policy Institute, remarked, 'Given the reality of local job opportunities diminishing, regional construction companies are strategizing to win bids centered around Seoul and metropolitan areas,' adding, 'there is a situation where regional construction companies that can manage to carry out projects in Seoul are working hard to secure small-scale sites in the city.'
HS HWASUNG originated from Hwasung Industrial, founded in 1958 by the late Lee Yoon-seok. In 2019, Lee Yoon-seok's son, Lee In-joong, stepped down as honorary chairman, and Lee Jong-won, the third generation, was appointed as the CEO. Since taking office as chairman in 2022, Lee Jong-won has been focusing on expanding into the metropolitan area and overseas businesses.