Chinhung International Builds Premium Residential Complexes in South Korea

The accomplishments of Korean construction companies are a feat to be studied: land that is over 70% mountainous, combined with high population density and limited urban space, should have posed major constraints, yet the country has achieved one of the most rapid and sophisticated urban transformations in the world. How have these experiences and expertise helped you compete domestically?

South Korea is in a uniquely challenging geographical position, with over 70% of its land being mountainous. Nevertheless, the country experienced exponential growth, particularly beginning in the 1970s, due in part to strong political initiatives such as the Saemaul Undong, or New Village Movement. I also believe that the national character of the Korean people played a significant role in this remarkable transformation. Following the devastation of the Korean War in the 1950s, the country was determined to rebuild and advance, which led to widespread development efforts throughout the 1960s and 70s.

The buildings we constructed during that era were robust, often lasting 40 to 50 years thanks to the quality of the concrete used. Many of those structures are now being replaced, as we enter a second wave of development in the 2000s. One of the main reasons South Korea differs from countries such as the Philippines is, again, the national character: Koreans are fast-paced, highly diligent, and driven to achieve tangible results quickly.

Despite our high population density, these characteristics have been an asset rather than a hindrance. Although we are geographically a peninsula, the presence of North Korea effectively makes us operate like an island nation, which adds to our need for self-sufficiency and agility. Without the uniquely Korean mindset of speed and perseverance, such accomplishments, whether in road construction, tunnel engineering, or port development, would not have been possible.

Recently, labor shortages, permit delays, and rising material costs have made the domestic construction market more difficult to navigate, pushing companies to become more agile. With three consecutive interest rate cuts and an increasing focus on asset-specific construction, such as data centers and new infrastructure projects like Sejong City, how are Korean companies balancing these opportunities against the decline in office and regional residential construction?

In the construction industry, financial assets are crucial, they serve as the foundation for ensuring quality output. At the same time, we face significant challenges, particularly in labor. Today’s younger generation, millennials and Gen Z, only supply about 10% of the workforce that previous generations provided. As a result, we have no choice but to rely on foreign labor to fill this gap.

On the financial side, despite lower interest rates, establishing a sound and resilient financial structure remains difficult due to the current political environment. These factors have placed the construction sector in a rather gloomy situation. However, I believe that a path forward lies in collaboration between industry professionals and academia. Experts and scholars must provide actionable proposals to the government, which in turn should analyze these recommendations and develop strategic projects to revitalize the industry.

To summarize, the domestic construction industry is currently facing serious headwinds, from labor shortages to financial and political uncertainties. Nonetheless, with the support of academic and industry professionals, I believe we can overcome these difficulties and create a brighter future.

Bupyeong Harrington Place

Some players in the industry have looked to overseas markets for growth. Over the past five years, Korea has maintained over USD 30 billion in overseas construction orders, supported by both government initiatives and large conglomerates. In regions such as the Middle East, Eastern Europe, and Southeast Asia, some Korean SMEs have seen international expansion as a key opportunity. Which regions or sectors do you see as the most accessible and promising for Korean construction companies today?

Expanding abroad certainly offers opportunities, but it also presents serious challenges. Differences in legal systems, cultural expectations, and operational strategies often hinder Korean companies from succeeding in foreign markets. That said, Southeast Asia holds significant potential. Countries such as Myanmar, Vietnam, and Cambodia represent promising markets. However, we still face strong competition from Chinese and Japanese firms, especially when it comes to regulatory hurdles and market entry barriers.

Outside of Southeast Asia, the Middle East continues to be a key region for us. In fact, back in the 1980s, South Korean companies, including ours, played a major role in constructing oil facilities in Saudi Arabia. Our strengths then, as now, were our speed in decision-making and the high quality of our construction services.

As a company, we are mindful of our legacy and committed to embracing a global outlook once again. While Europe and South America are geographically distant and present logistical challenges, Southeast Asia and the Middle East are much more accessible. We are also paying close attention to emerging opportunities in countries like Uzbekistan. Large Korean conglomerates are expanding into these areas, particularly in sectors such as electricity and nuclear energy, including recent projects in the Czech Republic, a trend I believe will continue.

Additionally, there is a strong trend in Korea toward the redevelopment and reconstruction of aging buildings. In collaboration with LH (Korea Land and Housing Corporation), this presents a significant opportunity for us to export our expertise in housing development. While infrastructure is certainly important, what’s even more vital is the ability to build homes where people can live comfortably.

Korea’s housing culture is centered around high-rise apartments, which is a direct result of our limited land. In contrast, many overseas markets have ample land but lack advanced know-how in high-density urban residential construction. This is where Korean companies can truly add value. We are well positioned to support urban development projects globally by sharing our expertise in efficient, high-rise, high-quality residential construction.

Most of the Korean construction companies that expanded abroad did so with support from Korean capital, often through large-scale national projects. At times, they partnered with foreign investors or joined global consortiums, allowing them to establish branches or lead overseas projects. What steps do you believe are necessary for Korean companies to better integrate into the global supply chain?

Korean companies are known for their speed in decision-making and their agility in taking responsibility. I also believe that Korean professionals possess strong willpower to break into unfamiliar and uncertain markets. Integrating into the global supply chain and collaborating with Western companies represents a valuable opportunity for the future. While we continue to face challenges such as legal differences and cultural barriers, the core strengths of Korean companies, namely high-quality execution, quick decision-making, agility, and a tenacious mindset, can serve as powerful tools when seeking to enter new markets. These attributes, I believe, are critical steps toward successful global integration.

In the highly competitive engineering and construction market, continuous innovation and adaptability are essential. This is especially true in South Korea, where initiatives like S-Construction 2030 and the Smart Alliance with major EPCs promote the adoption of big data, BIM, drones, AI, and automation. These technologies are aimed at improving operational efficiency, stakeholder coordination, and safety. What role do you see digital technologies playing in the future of construction companies?

Construction has traditionally been centered around people and equipment. However, we are now witnessing a shift toward utilizing automation and digital technologies to boost both productivity and competitiveness. I also believe that adopting BIM systems, robotics, and drones will greatly enhance productivity, quality, and safety throughout the construction process. At Chinhung International, we are actively implementing smart technologies and BIM into our workflow. While we remain focused on our core strength, construction, we recognize that there are areas beyond human capability. For those, we must rely on automation, robotics, and drones to extend our reach and efficiency. In those limited-access areas, digital technology becomes not just helpful but essential.

Is this a long-term plan, or have you already implemented drones and automation in specific projects?

We are actively using these technologies today. For example, we currently deploy drones on our construction sites, particularly for safety inspections in areas that are difficult or dangerous for humans to access. These drones monitor for defects from the air. So yes, digital technology and automation are not just part of our future plans, they are already part of our ongoing operations.

Gwangju Summer Universiade Multi-purpose Gymnasium

Established in 1959, Chinhung International has long served as Hyosung Group’s specialist in residential housing, industrial buildings, and civil engineering. It is also the lead contractor for Hyosung’s Harrington Place premium housing complexes. Could you share some key milestones that have shaped Chinhung International into the company it is today?

Interestingly, this very building we’re in was also constructed in 1959. Our 67-year history has grown alongside this physical space. Chinhung International was originally established on the foundation of infrastructure, building industrial complexes, roads, ports, tunnels, and various other civil engineering projects. More recently, we’ve been shifting toward maintenance, redevelopment, and reconstruction, which are major areas of opportunity in today’s Korean market.

To strengthen our competitiveness, we are also working to develop and grow our own brand to maximize profitability. Currently, our annual sales stand at around KRW 700 to 800 billion, but we are forecasting this figure to reach KRW 1 trillion within the next five years.

In addition to residential and infrastructure construction, we are expanding into new sectors, including plant facilities and energy-related projects. This includes data centers and senior housing, both of which present promising new avenues for Chinhung International moving forward.

For a long time, your core strength has been in buildings, premium housing, renovations, and construction. How do you plan to expand your technical and engineering expertise into the new fields of industrial plants and electrical infrastructure?

Currently, our human resources are concentrated in civil engineering, residential construction, and traditional infrastructure. To diversify into new sectors, we are planning to recruit specialists with expertise in R&D and technologies related to new infrastructure, energy, and plant facilities. Establishing an R&D center is one of our strategic goals. While our current capabilities are heavily focused on construction, expanding our talent pool will allow us to step up to the next level and enter new markets.

At Hyosung, we place tremendous importance on quality, from design to construction, and all the way through after-sales service. This dedication to excellence throughout the product lifecycle has given us a strong competitive edge. That same DNA of quality, discipline, and excellence, that has defined our housing and infrastructure projects will be carried over to our plant construction, senior housing, and other new ventures as well.

I’d like to hear your thoughts on the strengths Chinhung International has developed in the housing market. Let’s take Harrington Place as an example. You’ve built dozens of these complexes, including the massive development in Bupyeong with more than 2,000 units. These large-scale premium residential buildings, with high floor-to-ceiling ratios and family-friendly layouts, require exceptional quality from foundation to finish. What makes Chinhung International the ideal partner for premium residential projects like these?

I often say that construction materials, such as concrete and steel, are the same across the industry in Korea. What sets us apart is how we manage cost, design execution, and adaptability during construction. Even after finalizing apartment designs like those for Harrington Place, we frequently encounter situations on-site where the land conditions don’t perfectly align with the initial plans. Our strength lies in how quickly and efficiently we respond to those situations by adjusting designs and ensuring everything fits seamlessly with the project site.

Harrington Place is one of our flagship brands, and we are proud to deliver it with the highest level of quality. We have built a stable pipeline of premium residential projects in regions such as Gangnam, Busan, Incheon, Gwangju, and Daegu. For example, in Jung-gu, Busan, demand for luxury residential developments remains strong, and we are actively contributing to that growth.

While we are not yet among Korea’s top 10 construction firms, I firmly believe that we have built a solid foundation to rise into that league. Another area where we excel is in the design of common areas within our residential complexes, landscaping, environmental design, and community facilities. These shared spaces significantly elevate the value of the Harrington Place brand and are a key part of what makes our offerings truly premium.

You mentioned that your annual revenue currently stands at around 700 to 800 billion KRW, with a goal to reach 1 trillion KRW within the next five years. What are the key growth drivers that will take you there? Will you continue focusing on the domestic market, or are international markets part of your strategy?

Residential construction has been, and will remain, our core focus for the next three to four years. During this time, we plan to consolidate our capabilities in housing and then gradually diversify into new sectors such as industrial plants, data centers, and energy infrastructure.

One major driver of growth is the surge in reconstruction orders, especially in the housing sector. We plan to leverage this momentum by investing in in-house capabilities—from design to development to execution. Once we strengthen our foundation in premium housing, we will pivot to broader infrastructure opportunities.

We are also preparing to launch new premium housing projects with 500 to 1,000 households per complex. To increase profitability and restructure our revenue model, we are planning to transition from purely public projects to mixed or self-funded developments. This will allow us to reinvest in future opportunities in new fields like plants, energy systems, and data centers.

Ulsan New Port Breakwater

What key message would you like readers to take away?

At its core, Chinhung International is a company with enormous potential and room for growth. One of our future ambitions is to actively participate in overseas projects, which we view as a key element of our long-term growth strategy.

Chinhung became part of the Hyosung Group in 2008, and since then, our identity, rooted in over six decades of history, is evolving to reflect the scale, ambition, and global mindset of Hyosung. We are gradually transforming into a globally competitive firm backed by one of Korea’s most robust industrial conglomerates.

As we look to expand internationally, localization will be a crucial strategy. However, forming successful global partnerships doesn’t happen overnight, it’s a long-term process. That’s why we’re focused on strengthening our capabilities in the domestic market first. Once we establish trust and proven performance at home, we believe it will naturally open doors to long-term international partnerships.

Any company that hopes to endure must think beyond short-term gains and commit to long-term, sustainable goals. In Korea, very few companies have lasted over 100 years. At Chinhung, we are working diligently to ensure that Hyosung Group, along with its affiliates like us, is built to last well beyond a century.

Hyosung has over 100 affiliates, making it one of Korea’s most stable and diverse business groups. We believe in the collective power of these affiliates. With continued effort and strategic growth, we are confident that Hyosung can evolve into Korea’s next major conglomerate, right alongside Samsung and Hyundai.