Journalist

Hong Seung Woo
  • Seoul Gifts and Direct Home Sales Jump Ahead of End to Capital Gains Tax Break for Multi-Homeowners
    Seoul Gifts and Direct Home Sales Jump Ahead of End to Capital Gains Tax Break for Multi-Homeowners Multi-homeowners in Seoul are increasingly turning to gifts and direct transactions as a temporary suspension of heavier capital gains taxes nears its end. With the surcharge set to return, some owners are seeking tax savings through methods beyond straightforward sales, including gifts with debt assumed by the recipient and below-market transfers among family members. According to the Supreme Court’s registry information system, Seoul recorded 1,980 gift-transfer registrations for multi-unit buildings last month, up 47.2% from 1,345 the previous month. It was the highest monthly total since December 2022, when there were 2,384 cases, the most in three years and four months. Multi-unit buildings include apartments, row houses, multi-family homes and officetels. Nationwide, gift-transfer registrations totaled 5,560, the highest since December 2022, when 9,342 cases were recorded. At that time, demand surged ahead of a change in the gift acquisition tax base from the officially assessed price to a market-recognized value. This time, the rise is widely seen as an effort to reduce tax exposure ahead of the end of the capital gains tax surcharge suspension for multi-homeowners. With sales of homes with tenants allowed through May 9, more owners appear to be transferring homes to children in the form of gifts that include the assumption of debt. By district in Seoul, Songpa led with 161 cases, followed by Yangcheon with 135, Nowon with 118, Seocho with 115, Yongsan with 106, and Gangnam and Dongjak with 104 each. Yongsan nearly doubled from 54 the previous month, up 95.3%. The increase across both high-priced areas such as Gangnam and Yongsan and districts including Yangcheon and Nowon suggests tax-driven demand is spreading citywide. Direct apartment transactions in Seoul are also rising. Data from the Ministry of Land, Infrastructure and Transport’s real transaction price disclosure system show 109 direct deals in February, 185 in March and 234 in April. Direct deals accounted for 5.15% of 4,544 reported apartment transactions in April. Such transactions bypass licensed brokers and often include deals between family members or other related parties. In April, Seocho had the highest share of direct deals at 15.8%. Gangnam posted 7.8%, while Yeongdeungpo and Gwangjin each recorded 7.3%. Market observers said some of the activity reflects demand to transfer homes to family or relatives at prices below market levels before the surcharge resumes. Under the current Inheritance and Gift Tax Act, even transactions between related parties are treated as normal — and not subject to gift tax — if the reported price is within the smaller of (1) 30% below the actual transaction price within the past three months or (2) 300 million won. That rule is one reason some multi-homeowners appear to be using direct transactions to dispose of holdings before higher taxes apply. The suspension of the capital gains tax surcharge for multi-homeowners ends May 9. Starting May 10, multi-homeowners selling homes in regulated areas will face an added 20 percentage points for two-home owners and 30 percentage points for those with three or more homes, on top of the basic tax rate. Including local income tax, the effective top rate can rise to 82.5%. The government has announced supplementary steps to reduce disruption. If a land-transaction permit is applied for by May 9, sellers can avoid the surcharge if they complete the transfer process — including final payment and registration — within a set period. For the three Gangnam districts and Yongsan, the deadline to complete the transfer is Sept. 9. For Seoul’s other 21 districts and 12 areas in Gyeonggi Province, the deadline is Nov. 9. Homes with tenants are also covered by an exception. If a lease existed as of Feb. 12 and a land-transaction permit is applied for by May 9, the owner-occupancy requirement is deferred until the lease ends, but only when the buyer is a person without a home. An industry official said last-minute tax-saving moves by multi-homeowners are likely to continue. The official added that when a simple sale is difficult, more owners may consider gifts, gifts with debt assumed by the recipient, or direct transactions between related parties. The official cautioned, however, that below-market transfers and debt-assumption gifts could later be scrutinized by tax authorities, making it important to carefully assess pricing and the requirements for transferring liabilities.* This article has been translated by AI. 2026-05-03 13:45:17
  • Seoul’s Next Redevelopment Hot Spots Shift to Yongsan, Gwangjin, Nowon and Dongjak
    Seoul’s Next Redevelopment Hot Spots Shift to Yongsan, Gwangjin, Nowon and Dongjak As major Seoul reconstruction projects in Apgujeong, Yeouido, Mok-dong and Seongsu near the end of contractor selection, attention is shifting to the next cycle. The focus is moving away from ultra-high-priced riverside rebuilds toward areas where large mixed-use development overlaps with renewal of older neighborhoods. Industry officials said April 28 that Yongsan, Gwangjin, Nowon and Dongjak are emerging as leading candidates to reshape Seoul’s next housing map. While each has different advantages and development profiles, all have broad swaths of aging housing and are tied to major projects or changes in wider transport and business corridors. Unlike the earlier wave centered on luxury Han River reconstruction, the new group is driven by a mix of office-district expansion, station-area mixed-use projects, large-scale housing-district renewal and completion of New Town plans. Yongsan is already a core axis of Seoul’s property market, but its western neighborhoods — including Cheongpa, Seogye, Huam and Yongsan-dong 2-ga — are still viewed as later-stage redevelopment areas. If the Yongsan International Business District moves fully into implementation, expectations for upgrading nearby older housing are likely to rise. The Yongsan International Business District is planned on about 495,000 square meters. Seoul has outlined a plan that includes a landmark tower of around 100 stories and about 500,000 square meters of green space. The concept goes beyond office buildings to a mixed-use city combining residential, business, commercial and cultural functions. If the Yongsan rail yard area is reorganized into a central corridor linking downtown Seoul, Yeouido and Gangnam, pressure to redevelop surrounding low-rise neighborhoods is expected to increase. In Gwangjin district, the Guui, Jayang and Gwangjang areas are also drawing attention. Located across the Han River from Seongsu, the area is cited as a “post-Seongsu” candidate because it offers access to Gangnam and the potential for Seongsu’s living sphere to expand. A key variable is the modernization project for the Dong Seoul Terminal, which could reshape local urban functions. Seoul plans to modernize the Dong Seoul Terminal into a mixed-use complex combining transportation, office, retail and cultural functions. After traffic-impact assessments and architectural reviews, the project is being pursued with a target of starting construction as early as late 2026 and completing in 2031. If the aging terminal is converted into a regional transportation hub, it is expected to affect commercial activity and housing demand in the Guui-Jayang area. Nowon district’s Sanggye, Junggye and Hagye neighborhoods are considered the largest reconstruction belt in northeast Seoul by scale. Built through large housing-district development in the 1980s, the area has dense apartment complexes that are more than 30 years old. Interest had been limited, but sentiment is changing after a large-scale renewal plan was finalized. Seoul issued a final notice on Dec. 18, 2025, for the renewal plan covering the Sanggye, Junggye and Junggye 2 housing-district development areas. Under the plan, a site currently sized for about 76,000 households is expected to be reorganized into a core northeast residential mixed-use city of about 103,000 households. Higher-density development around transit stations and zoning upgrades could improve project feasibility. Still, the pace of work, resident consent rates and construction-cost burdens remain key variables. Dongjak district’s strength is its location between Yeouido and Yongsan. In particular, Noryangjin New Town could be re-evaluated as a leading new-housing area in southwest Seoul after the project is completed. Demand is expected from people seeking shorter commutes, supported by access to Yeouido’s business district and potential spillover benefits from Yongsan’s development. At the same time, some expectations in Dongjak have already been reflected in prices, creating a burden. As work accelerates in major Noryangjin New Town zones, the pressure from higher presale prices is also growing. Market direction is likely to depend on how much location premiums can absorb those higher prices. A real estate industry official said it remains to be seen whether the four areas will lead Seoul home prices in the short term the way Apgujeong, Yeouido, Mok-dong and Seongsu did. “There are many variables, including differences in project speed by site, construction costs, interest rates and presale price regulations,” the official said. Still, the official added that “their mid- to long-term potential is sufficient” because major development corridors and renewal of aging housing are moving forward at the same time.* This article has been translated by AI. 2026-04-28 15:40:42
  • Daewoo E&C Q1 Operating Profit Jumps 68.9% as Profitability Improves
    Daewoo E&C Q1 Operating Profit Jumps 68.9% as Profitability Improves Daewoo Engineering & Construction said April 28 it posted sharply higher profit in the first quarter of 2026, citing improving margins in its building business. On a consolidated basis, revenue totaled 1.9514 trillion won, operating profit was 255.6 billion won and net profit came to 195.8 billion won. Revenue fell 6.0% from 2.0767 trillion won a year earlier. By segment, the company booked 1.2732 trillion won from building construction, 350.6 billion won from civil engineering, 284.0 billion won from plant work and 43.6 billion won from other businesses. Operating profit rose 68.9% from 151.3 billion won in the same period last year, while net profit increased to 195.8 billion won from 58.0 billion won. The company said revenue was broadly in line with market expectations, but profit measures exceeded forecasts. Daewoo E&C said profitability in the building segment improved as projects launched during a period of rising costs have gradually been completed. It added that uncertainty remains, including risks in the Middle East, but said it will continue pursuing its targets through management capabilities. New orders totaled 3.4212 trillion won, up from 2.8238 trillion won a year earlier, driven largely by domestic projects including the Busan Sajik District 4 redevelopment, Cheonan Upseong 3 A1BL and the Seoul Jangwi District 10 redevelopment. As of the end of the first quarter, the company’s total order backlog stood at 51.8902 trillion won, which it said represents about 6.4 years of work based on annual revenue. A Daewoo E&C official said the company plans to expand the share of energy infrastructure projects such as nuclear power and LNG, while broadening its portfolio through overseas urban development, data centers and urban renewal projects. The official said the company will also focus on securing large projects, including the Czech nuclear power plant, land development for the new Gadeokdo airport, the Al Faw port naval base in Iraq and an LNG facilities project in Papua New Guinea. 2026-04-28 09:27:52
  • Hanwha-Daewoo Consortium Wins Contractor Role for Sindebang Station Redevelopment in Seoul
    Hanwha-Daewoo Consortium Wins Contractor Role for Sindebang Station Redevelopment in Seoul Hanwha’s construction division and Daewoo Engineering & Construction said on the 27th that their consortium has secured the construction contract for the Sindebang Station area redevelopment project in Dongjak-gu, Seoul. The project’s residents’ representative council held a general meeting of members on the 25th and confirmed the Hanwha-Daewoo consortium as the builder. It is the first redevelopment project Hanwha’s construction division has won this year. The site is in Sindebang-dong, Dongjak-gu, around 600-14. On a 58,747-square-meter lot, the plan calls for 11 apartment buildings ranging from seven basement levels to 29 stories above ground. The complex will have 1,586 households, with total construction costs of 581.7 billion won. The complex is to be built near Sindebang Station on Seoul Subway Line 2 and the planned Sinansan Line. The planned name is “Forena Prugio Boramae.” The consortium said it improved the design from the existing plan to add 61 households and proposed measures aimed at reducing members’ cost burdens. An alternative design focused on efficiency and specialized design features intended to enhance market appeal were reported to have been well received during the selection process. Plans call for a resort-style residential complex with a central courtyard and themed parks. The exterior will apply Hanwha Forena’s aluminum art wall and patterned facade design. About 95% of units will face south, based on 10 floor-plan types, with a higher share of slab-type layouts. A public pedestrian walkway will link the central plaza to Sindebang Station on Line 2 and the planned Sinansan Line station, a design intended to improve residents’ mobility. A sky lounge on the 29th floor is also planned, with views of Boramae Park. A Hanwha Construction Division official said the consortium will “push the project forward in a stable manner” based on the two companies’ construction experience and aims to complete a residential complex “befitting a key hub in southwestern Seoul.”* This article has been translated by AI. 2026-04-27 14:57:43
  • Soaring Materials Push Up Construction Contract Costs; Samsung, Hyundai, Daewoo Up Over 1 Trillion Won
    Soaring Materials Push Up Construction Contract Costs; Samsung, Hyundai, Daewoo Up Over 1 Trillion Won Rising construction costs are reshaping the mood across South Korea’s building sector. With higher raw material and labor costs persisting, contractors are repeatedly revising previously disclosed single sales-and-supply contract amounts, a sign that cost pressures at job sites are becoming harder to absorb. Samsung C&T, Hyundai Engineering & Construction and Daewoo Engineering & Construction have raised contract amounts by more than 1 trillion won combined so far this year. On April 24, the construction industry said Samsung C&T on April 22 filed a revised disclosure increasing the contract value for “PROJECT LIGHTNING” — a high-voltage direct current transmission project in the United Arab Emirates — to 2.8764 trillion won from 2.7693 trillion won, an increase of 107.1 billion won. The project includes installing power conversion and substation facilities in the UAE and supplying subsea HVDC cables. Separately, the main equipment construction cost for Shin Hanul nuclear power units 3 and 4 rose by 85.9 billion won, to 1.2959 trillion won from 1.21 trillion won. Hyundai E&C has also raised contract amounts in April for projects including the Daejang-Hongdae metropolitan rail private investment project, the Jafurah utility project in Saudi Arabia, and the reconstruction of Banpo Jugong Apartment Complex 1, zones 1, 2 and 4. Based on related disclosures, the total increase is about 446.2 billion won. The Daejang-Hongdae rail project alone grew from 868.864 billion won when first disclosed in June last year to about 1.1097 trillion won in the latest revision. The increases span urban redevelopment, rail and overseas sites, indicating the cost burden is not limited to one type of project. Daewoo E&C reported similar revisions, adjusting contract amounts for projects including the Jangwi District 10 redevelopment, the GTX-A line private investment project, the Heukseok District 11 redevelopment and the Cheongju Technopolis development work. The total increase is estimated at about 681.2 billion won, including about 252.2 billion won for the Heukseok District 11 redevelopment. Together, the three builders’ increases total 1.3204 trillion won. The trend is not limited to the largest firms. Mid-sized builders such as Hanshin Engineering & Construction and Dongbu Construction have also filed revised disclosures for single sales-and-supply contracts. The pressure to recalculate costs is spreading beyond redevelopment and reconstruction to civil engineering and plant projects. Among 12 listed builders ranked in the top 50 by construction capability assessment, contract increases over the past two months totaled 2.4290 trillion won. An industry official said costs at many sites have risen to levels where it is difficult to protect profitability based on the original contract amount. “At sites where disputes over construction costs have dragged on, cases are not rare where this leads to delayed starts, work stoppages, or renegotiations between contractors and associations,” the official said. The market expects the upward pressure on construction costs to persist because material and labor costs remain unstable. According to the Korea Construction Industry Research Institute, the construction cost index in February stood at 133.69, up 2.0% from a year earlier. The institute attributed the rise to higher prices for other metal products, automatic adjustment and control devices, and primary steel products. Uncertainty has also increased for key process costs, including chemical-related materials, amid geopolitical risks in the Middle East, energy price swings and transportation cost burdens. As time passes after groundbreaking, cost changes accumulate, and projects that can no longer absorb them internally move to revise contract amounts. Even so, higher contract amounts do not necessarily translate into a quick recovery in profitability. In many cases, only part of the increase is reflected through negotiations with project owners, and longer construction periods can create additional burdens. A construction company official said that even with partial increases, it is difficult to fully recoup surging material and labor costs as well as higher financing costs. “Contract amounts have risen on paper, but it is hard to say profitability will recover,” the official said.* This article has been translated by AI. 2026-04-24 15:03:25
  • Daewoo E&C Chairman Jung Won-ju promotes Vietnam cooperation during economic mission
    Daewoo E&C Chairman Jung Won-ju promotes Vietnam cooperation during economic mission Daewoo Engineering & Construction Chairman Jung Won-ju visited Vietnam as part of an economic delegation timed to President Lee Jae-myung’s trip, the company said April 24. During the April 21-24 visit, Jung joined official events and highlighted the company’s track record and experience in Vietnam. Jung attended a completion ceremony for the B3CC1 mixed-use development in Hanoi’s Starlake City. The project consists of two towers ranging from three basement levels to 35 stories above ground, combining offices, a hotel and commercial facilities. It was completed with a total floor area of 211,462 square meters, with South Korean companies involved across development, investment and construction. At the ceremony, Jung said the project has become a symbolic example of economic cooperation between the two countries. He said support from the Vietnamese government, the Hanoi city government, the South Korean government and related agencies played an important role in completing the project. On the same day, Jung visited the headquarters of the Bank for Investment and Development of Vietnam to outline future plans and seek expanded cooperation. The bank is known as a key financial partner that has participated in major development projects, including Starlake City. Jung also took part in the delegation’s official schedule, attending a state banquet as well as a Korea-Vietnam business roundtable and forum. He presented ideas for smart cities and large arena developments, proposing an urban model that combines culture and industry, and expressed willingness to contribute to digital infrastructure through data center construction. He also signaled interest in expanding into large infrastructure projects such as nuclear power generation and high-speed rail, indicating a broader scope beyond the company’s existing focus on urban development. A Daewoo E&C official said, “Vietnam is one of Daewoo E&C’s key strategic markets and a trusted partner, and we plan to continue expanding investment and cooperation across areas including nuclear power plants and high-speed rail, urban development and data centers.” The official added, “Through this, we will contribute to Vietnam’s economic development while doing our utmost to further strengthen friendly and cooperative ties between the two countries.” Separately, Daewoo E&C signed a memorandum of understanding with Vietnamese IT and infrastructure company SaigonTel to cooperate on data center projects. The companies plan to pursue projects together through data center EPC and joint investment. Daewoo E&C said it expects the partnership to create synergy as policy changes in Vietnam expand the related market.* This article has been translated by AI. 2026-04-24 09:01:44
  • Daewoo E&C Opens 2026 First-Half Hiring for Entry-Level Employees
    Daewoo E&C Opens 2026 First-Half Hiring for Entry-Level Employees Daewoo Engineering & Construction has opened public recruitment for entry-level employees for the first half of 2026, the company said on the 23rd, citing efforts to strengthen organizational competitiveness and lay the groundwork for future growth. Applications will be accepted from the 23rd through May 6 on the company’s recruitment website. Openings are in architecture, civil engineering, plant and nuclear power, and safety. The company plans to hire more than about 70 people. The hiring is tied to an organizational overhaul aligned with the Czech nuclear power project and the company’s push to expand overseas nuclear markets, including Vietnam and the United States. It also aims to secure staff for major infrastructure projects such as the new Gadeokdo airport and the GTX-B private investment project. Applicants must have graduated from a four-year university or higher, or be expected to graduate in August 2026. The process includes a written test in May, followed by first- and second-round interviews in June. Final hires are expected to start work in July 2026. “As our business portfolio diversifies and our global footprint expands, securing talent is becoming more important,” a Daewoo E&C official said. “We will continue to develop people who can raise competitiveness across all business areas, including housing as well as civil engineering and plant projects.”* This article has been translated by AI. 2026-04-23 15:31:56
  • South Korea Land Prices Rise 0.58% in Q1; Seoul Up 1.10%
    South Korea Land Prices Rise 0.58% in Q1; Seoul Up 1.10% Land prices nationwide rose 0.58% in the first quarter, extending their upward trend, though the pace eased slightly from the previous quarter. The Ministry of Land, Infrastructure and Transport and the Korea Real Estate Board said on the 23rd that nationwide land prices have risen for 37 straight months since turning upward in March 2023. The first-quarter increase was 0.03 percentage points lower than the 0.61% gain in the fourth quarter of last year, but 0.08 points higher than the 0.50% rise a year earlier. By month, the nationwide land-price change rate in March was 0.20%, up 0.01 points from 0.19% in February and 0.02 points higher than March last year (0.18%). While the quarterly gain slowed slightly overall, the increase picked up again in March. By region, land prices in the Seoul metropolitan area rose 0.81%, far outpacing the 0.19% increase in non-metropolitan areas. By province-level jurisdiction, Seoul climbed 1.10%, the only 1%-plus gain among the country’s 17 cities and provinces. Gyeonggi rose 0.55%, followed by Sejong at 0.45% and Daejeon at 0.42%. Jeju fell 0.22%, the only region to post a decline. At the local-government level, 41 of the nation’s 255 cities, counties and districts exceeded the national average. The biggest increases were in Seoul’s Gangnam District (1.50%), Yongsan District (1.31%) and Seocho District (1.26%), reflecting continued strength in key Seoul neighborhoods. In 89 areas designated as experiencing population decline, land prices rose 0.15%, 0.47 points lower than the 0.62% increase in other areas. Land transactions declined. Total land deals in the first quarter, including land attached to buildings, totaled 462,000 parcels covering 265.4 square kilometers, down 3.6% from the fourth quarter. Transactions for land excluding building-attached plots totaled 150,964 parcels covering 239.4 square kilometers, down 0.1% from the previous quarter. Compared with a year earlier, however, total transactions rose 6.7% and land-only transactions increased 0.6%. By city and province, compared with the fourth quarter, total and land-only transactions increased in five regions and fell in 12. Sejong posted the largest gains, with total transactions up 41.7% and land-only transactions up 33.6%. On a land-only basis, Seoul also recorded a 17.6% increase.* This article has been translated by AI. 2026-04-23 14:28:40
  • Samsung C&T’s Homeniq Expands Smart-Home Partnership With Seohae General Construction
    Samsung C&T’s Homeniq Expands Smart-Home Partnership With Seohae General Construction Samsung C&T Corp.’s construction unit said its home-platform service, Homeniq, will expand smart-housing technology cooperation with Seohae General Construction. Samsung C&T said it signed a business agreement with Seohae on the 22nd in Seoul’s Seocho District to build “Seohae Granble by Homeniq.” Under the deal, Homeniq services will be offered first to residents of a new Seohae Granble complex in Wangil-dong, Incheon, scheduled to go on sale in June. Residents will be able to use functions including home IoT controls, reservations for community facilities, notices and maintenance-fee inquiries, visitor vehicle reservations, energy management, resident community features and shopping. The companies said they plan to continue technology exchanges across smart-housing solutions, including Homeniq, an AI-based parking service, measures to reduce inter-floor noise and an integrated energy monitoring system. Samsung C&T said it aims to broaden its home-platform ecosystem and strengthen competitiveness in housing services. Seohae General Construction develops housing complexes centered on its apartment brand Seohae Granble and its mixed-use and residential officetel brand Seohae Sky Palace. It also operates Jeju’s Arden Hill Resort and the St. John’s Hotel in Gangneung. Samsung C&T said it is expanding cooperation beyond its Raemian complexes, working with 15 builders including SK ecoplant, Hanwha Construction, Doosan Engineering & Construction, HS Hwasung, Woomi Construction, Hoban Construction and SM Group’s construction unit. The company described the Seohae agreement as part of Homeniq’s broader expansion.* This article has been translated by AI. 2026-04-23 10:17:06
  • Construction Policy Institute Cites Gap Between Housing Supply Expectations and Reality
    Construction Policy Institute Cites Gap Between Housing Supply Expectations and Reality “Recent housing supply in South Korea is showing a gap between expectations for expanded supply and the reality, amid domestic and global economic uncertainty and growing management burdens in the construction industry.” The Korea Construction Policy Institute said that in Construction Policy Journal No. 61, published on the 23rd, which addresses structural problems in domestic housing supply and policy response directions. The issue is themed “Diagnosing the Housing Supply Situation and Proposing Construction Policy.” The institute said that while the push to expand supply to stabilize the housing market continues, the market is being shaped by concentrated demand in the Seoul metropolitan area, a heavy tilt toward apartments, rising construction costs, project delays, an increase in aging housing and shifting housing demand tied to population aging. It said those factors are increasing the need to review the overall supply foundation. The journal presents response measures across six areas: tasks to supplement housing policy under the Lee Jae-myung government, the structure of South Korea’s housing supply and implications, changes in the construction environment centered on project duration and costs, promoting modular housing, expanding small-scale housing maintenance projects and boosting senior housing. It also calls for better coordination between policies to expand housing supply and manage demand, and highlights institutional improvements for modular housing, steps to activate small-scale housing maintenance projects, and directions for supplying senior housing to respond to a super-aged society. Ko Ha-hee, a senior researcher at the institute, said in “The Current State of Domestic Housing Supply and Implications” that recent housing supply “shows a gap between expectations for expansion and reality.” Ko said the housing supply problem is a structural challenge that is difficult to solve with short-term measures alone, adding that the domestic housing market has structural features including concentration in the Seoul metropolitan area, an apartment-heavy market and greater supply volatility. Ko said future housing supply policy needs to focus on long-term structural improvements beyond short-term responses to prices. 2026-04-23 10:12:46