South Korea's mid-tier construction firms are accelerating efforts to reshape their portfolios beyond housing and public projects, as large-scale redevelopment contracts in Seoul increasingly flow to major builders and regional housing sales face mounting challenges. The companies are seeking growth opportunities in overseas direct development, energy infrastructure, senior housing, and small-scale redevelopment projects.
According to the Construction & Economy Research Institute of Korea (CERIK) on Monday, orders received by mid-sized and small builders — estimated from the gap between construction order statistics compiled by Statistics Korea and the Construction Association of Korea — fell to 15.7 trillion won last year from 34.2 trillion won in 2021, roughly cut in half. Concentration among the top five major builders was also evident in the urban redevelopment market. Last year, the combined order value of the top five firms — Hyundai Engineering & Construction, Samsung C&T, GS Engineering & Construction, POSCO E&C, and HDC Hyundai Development — reached 36.86 trillion won, 3.1 times the 11.81 trillion won combined total of the firms ranked sixth to tenth.
As Korea Land & Housing Corp. (LH) directly executes public land development projects, squeezing mid-tier builders further out of the domestic housing and public construction market, these firms have concluded that survival is difficult under existing business structures. They are now earnestly searching for new avenues overseas and in energy and senior housing.
Bando Builders is a leading example of a company turning to overseas markets. Bando is developing its U.S. housing business as a repeatable revenue model rather than a one-off overseas venture. After completing "The Bora 3170," a 252-unit project in Los Angeles' Koreatown, the company is pushing ahead with its follow-up project, the 262-unit "The Bora 3020," targeting completion in January next year.
BS Hanyang is expanding its energy business with Solaseado in Haenam, South Jeolla Province, as its base. The company is also pursuing a biomass power plant in Gwangyang scheduled for completion this year and an LNG hub terminal on Myodo Island in Yeosu targeted for operation in 2028. Its energy and infrastructure segment's share of revenue expanded to 30% in 2025 from 24% in 2024.
Woomi Construction has identified senior housing as its future growth driver. Last year, it was selected as the preferred negotiation partner for LH's Guri Galmae Station Area Silver Stay pilot project, broadening its scope from pure construction to development and operation. Under the project, 346 of the 725 units across five 29-story buildings will be supplied as 20-year long-term rentals for middle-class seniors. Construction is set to begin in January next year, with move-in targeted for the end of 2029.
Mid-tier builders are also targeting small-scale block housing redevelopment as a niche in the redevelopment market. Doosan Construction won contracts in the first quarter alone for the Shinan Villa redevelopment in Magok-dong, a block housing project in Sillim-dong, public redevelopment projects in Chungjeongno District 1 and Hongeun District 1, and the Myeongjang District 3 redevelopment in Busan. Ssangyong E&C also secured a block housing redevelopment project around the Eunha Mansion complex near Noryangjin Station in February, securing a total of six redevelopment projects worth approximately 600 billion won in Seoul alone.
"Total construction orders increased last year, but polarization by company size is spreading," said Lee Ji-hye, a research fellow at CERIK. "Policy support and strategies to address polarization are needed to ensure the stability of the industry's ecosystem and maintain regional construction markets."
