With more early-stage rebuilding and redevelopment projects taking shape in Seoul, building materials makers are stepping up sales efforts aimed at the associations that run them. The industry is moving quickly as signs of a wider future market emerge after a prolonged drought in housing supply.
Seoul designated 33 new redevelopment zones in 2023, 39 in 2024, 77 last year and 51 in the first nine months of this year, according to data from the city government released on the 12th. Zone designation is widely described as the first step in any redevelopment project, since only after it is granted can an association be formed and a contractor selected. New apartments follow a sequence of project implementation approval, approval of the management and disposal plan that allocates the rebuilt units among association members, groundbreaking and completion, with decisions on finishing materials and supply contracts typically made around the start of construction. For materials makers, a rising number of designated zones signals an expanding base of future revenue.
Companies are accordingly moving early to build ties with the associations. KCC (002380.KS) ran two booths at a seminar held by the Seoul Redevelopment Project Federation on the 30th of last month, showcasing products from Klenze, its premium window brand. The seminar drew association heads, preparatory committee chairs and association officers from about 60 redevelopment zones belonging to the federation. Since launching Klenze in 2021, KCC has supplied the brand to projects including Olympic Park Foreon in Seoul's Gangdong district, completed in 2024, and the Shinbanpo 22 rebuilding project in the city's Seocho district, now under construction. Its flagship M700 model uses a single frame with four panes of glass, giving it a cleaner exterior profile and a wider field of view than double-frame windows. "What sets us apart is our installation capacity and after-sales system for large complexes," a KCC official said. "We also have strengths in paint, so we are offering architectural coatings and windows as a bundle to associations and construction firms."
Suppliers are also responding to demand for higher-end finishes from associations in Seoul's most sought-after districts. Hyundai L&C has recently been expanding package-based sales of premium materials for redevelopment projects. The company has assembled a lineup of about 20 products — including Rehau windows developed jointly with a European window maker and Hanstone, an engineered stone widely used for kitchen countertops — and is promoting the package to construction firms and associations. To strengthen the lineup, it signed exclusive domestic distribution deals in June for hardwood flooring from Italian timber company Florian and bathroom fittings from German supplier Keuco.
LX Hausys (108670.KS) is putting its high-end imported window brand Fenesta at the center of its pitch, targeting projects now gathering pace in Seoul's prime areas known collectively as Apgujeong, Yeouido, Mok-dong and Seongsu. Fenesta was installed in showrooms operated in April and May by GS E&C and Hyundai Engineering & Construction as they competed for the Seongsu District 1 redevelopment in Seoul's Seongdong district and the Apgujeong District 3 rebuilding project in Gangnam, respectively. "When contractors fit out a showroom to win a bid, they use the materials that best realize the vision they presented to the association," an LX Hausys official said. "That shows how highly Fenesta's quality and competitiveness are rated." LX Hausys plans to keep pressing its case for supply contracts on riverside redevelopment projects along the Han River, highlighting that Fenesta can be made up to 4 meters tall and that recessing the frame into the floor and ceiling maximizes a sense of openness.