쌍용건설

All Hands On Deck to Restore the Yega Brand Emphasis on the Housing Market in Recent Meeting
Directed Intense Focus on the Housing Market of 200,000 Units Every Year
Despite Signals Indicating Housing Recovery, Challenges Remain in Brand Renewal, etc.

Ssangyong E&C, which has focused on overseas construction, is expected to accelerate its efforts in domestic residential projects. Recently, Chairman & CEO S. Joon Kim of Ssangyong E&C pointed out, "There is a market in the housing business. Ssangyong E&C has successfully completed orders in Dubai, Singapore, Malaysia and Indonesia after its acquisition by the Investment Corporation of Dubai (ICD) in 2015. However, the firm is still struggling in the domestic market. However, with Chairman & CEO Kim directive to redouble the efforts in the Yega brand, the firm is expected to double down on the housing market. 

On July 26, according to industry sources, Chairman & CEO Kim, standing at the helm of the Korean construction firm, recently said, "There are 200,000 units being sold in the domestic housing business every year. We must not miss this market." It was reported that he directed the firm to focus on Ssangyong Yega, a dedicated brand for the housing market that includes general contract work as well as redevelopment, reconstruction, remodeling, and regional housing association projects. In the past, Chairman & CEO S. Joon Kim has directed most of his personal efforts toward the overseas market, electing to delegate responsibilities on the domestic market to senior directors within the firm. Until recently, Chairman & CEO S. Joon Kim was seen mostly in overseas projects and civil engineering endeavors in places such as Dubai, Singapore and Indonesia. Thus, Chairman & CEO Kim's new directive to redirect more efforts to the housing market can be seen as his willingness to personally manage the Ssangyong Yega brand and ultimately a signal towards the resurgence of Ssangyong E&C housing business. Especially, this directive is Chairman & CEO Kim very first directive after the recruitment of an executive responsible for Samsung C&T Raemian, the industry leader, as the executive in charge of Ssangyong E&C housing business. Industry sources view this as a manifestation of Kim will to succeed in the housing market. 

The housing business is Chairman & CEO Kim biggest concern. Ssangyong E&C, once nation&rsquos 6th in construction capacity, cannot afford to rule out the housing business from its business portfolio in addition to public works, overseas projects, and housing projects, if it intends to restore its former status. In particular, unlike overseas projects, domestic housing business such as redevelopment projects are in need of restoration as it remains the best way to appeal to the consumers and the Korean people that Ssangyong E&C is very well alive in Korea. Increasing number of observers are weighing in that the recruitment of Dong Wook Kim, the executive in charge of Samsung C&T Raemian, as Ssangyong E&C's executive officer is an extension of this effort. However, there are voices of concern that Ssangyong E&C may face difficulties in the housing business. Ssangyong E&C, in actively pursuing the Greater Seoul Metropolitan Area renewal project, represented itself in bidding presentations for numerous renewal projects. However, several observers opine that Ssangyong E&C's image stained by the workout and court management may prove to be the firm weakness. Ssangyong E&C is planning to supply a total of 3,800 units this year, beginning with Milyang Ssangyong Yega in South Gyeongsang province this month, followed by 1,538 units in Masanhapo-gu, Changwon, South Gyeongsang province, 811 units in Bupyeong-gu, Incheon, 873 units in Chowol-eup, Gwangju, Gyeonggi province, etc.