The urban redevelopment contract landscape for the first half of 2026 has shifted, with Hyundai Construction and GS Construction emerging as the dominant players. Last year, Hyundai Construction and Samsung C&T led the market with contract values between 9 trillion and 10 trillion won, but this year, both Hyundai and GS have each secured contracts worth around 7 trillion won, establishing a strong lead.
According to industry reports compiled on June 14, the cumulative contract value for urban redevelopment projects this year stands at 7.6946 trillion won for Hyundai Construction and 7.4694 trillion won for GS Construction. Together, their total contract value reaches 15.164 trillion won. Samsung C&T follows with 3.9018 trillion won, while Daewoo Construction and Lotte Construction each reported over 1 trillion won in contracts.
Hyundai Construction has rapidly surpassed the 7 trillion won mark by securing several large projects in the Apgujeong area. Last month, the company won the construction rights for the redevelopment of Apgujeong District 3 and District 5. The Apgujeong District 3 project has a construction cost of 5.561 trillion won, while Hyundai's share of the Apgujeong District 5 project, which has a total construction cost of 1.496 trillion won, amounts to 1.0472 trillion won.
GS Construction also led the market in the first half by winning contracts for projects including Songpa Hanyang 2nd, Gaepo Woosung 6th, Seongsu Strategic Redevelopment District 1, Seocho Jinheung Apartments, Yongin Suji Samsung 4th, and Gunpo Geumjeong 4th District. Additionally, GS Construction was selected as the new contractor for the redevelopment of Seongnam Sangdaewon 2 District during a recent assembly meeting, which has been included in the reported contract value.
However, the Seongnam Sangdaewon 2 District project faces legal disputes. DL E&C has received a temporary injunction against the assembly's decision to terminate the contract, and following the assembly's approval of the contract termination and selection of GS Construction, DL E&C has indicated plans for legal action. The construction cost of 1.9217 trillion won for the Sangdaewon 2 District project may change depending on the outcome of ongoing litigation.
Samsung C&T ranks third with a contract value of 3.9018 trillion won for the first half. The company has secured contracts for the redevelopment of Daechi Sangyong 1st, Apgujeong District 4, Shinbanpo 19 & 25 Integrated Redevelopment, and Bangbae Sin Samho Redevelopment. The construction costs for these projects are approximately 689.2 billion won for Daechi Sangyong 1st, 2.1154 trillion won for Apgujeong District 4, 443.4 billion won for Shinbanpo 19 & 25, and 653.8 billion won for Bangbae Sin Samho.
Daewoo Construction reported 2.9153 trillion won, while Lotte Construction recorded 1.5049 trillion won. POSCO E&C achieved 647.7 billion won, and SK Eco Plant reported 204.8 billion won.
In contrast, DL E&C, IPARK Hyundai Industrial Development, and Hyundai Engineering have not secured any urban redevelopment contracts as of this date. DL E&C lost out to Hyundai Construction in the Apgujeong District 5 bidding and continues to dispute the decision regarding the contractor change for the Sangdaewon 2 District.
There are still variables to consider as the first half of the year comes to a close. Samsung C&T is set to hold a meeting on June 20 to select a contractor for the Gaepo Woosung 4th redevelopment project, which has an estimated construction cost of 814.54 billion won. If approved, Samsung C&T's urban redevelopment contract value for the year could rise to 4.7 trillion won.
DL E&C is also aiming for its first urban redevelopment contract of the year during a meeting on June 27 to select a contractor for the Mokdong 6 Complex redevelopment. DL E&C is the sole preferred bidder for this project, which has an estimated cost of 1.2129 trillion won.
Industry analysts suggest that the polarization of contract awards in the first half of the year reflects a structural change in the redevelopment market beyond mere performance gaps. As construction costs rise and financial burdens increase, construction companies are increasingly focusing on selecting key projects that offer better profitability and brand impact rather than pursuing aggressive expansion.
Lee Tae-hee, a researcher at the Korea Construction Industry Institute, noted, "While large construction companies are actively participating in projects with proven profitability like Apgujeong and Seongsu, interest in areas with relatively lower profitability is waning. This trend, combined with the preference for well-known brands among assembly members, is leading to a more pronounced concentration of contract awards."
* This article has been translated by AI.
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