As the number of early-stage rebuilding and redevelopment projects in Seoul grows, building material makers are expanding contact with the associations that run them. The push comes with a clear shift toward premium product lines to match demand for higher-end finishes. With the housing supply drought dragging on, the industry is moving aggressively now that a rare signal of future market expansion has emerged.
Hyundai L&C Runs B2B Showroom, Pitches 20-Product Package
The number of Seoul housing redevelopment associations that have visited Studio H, the building material and interior showroom Hyundai L&C opened in Seoul's Seocho district in October last year, is about 33% higher than the number that visited Gallery Q, its predecessor, according to the building material industry on the 17th. Studio H, open for about a year, has drawn more association visits than Gallery Q did over nearly a decade. A Hyundai L&C official attributed the increase to the layout. "We designed the showroom to be business-to-business friendly and expanded the seminar space," the official said. "We also arranged the material zone, where various materials are displayed, to suit consultations, which has boosted client meetings."
Along with the showroom renovation, Hyundai L&C is stepping up package-based sales of premium building materials in the redevelopment segment. The move responds to growing demand for high-end finishes from associations in prime districts in Seoul and the surrounding metropolitan area. The company has assembled about 20 building material packages — including Rehau windows, co-developed with a European window maker, and Canstone engineered stone, a popular kitchen countertop finish — and is marketing them to builders and associations. To strengthen its lineup, it signed exclusive domestic distribution deals in June for hardwood flooring from Italian wood company Florian and bathroom fixtures from German maker Keuco.
Lean Times Persist, but More Zone Designations Lift Expectations
The moves track a growing rebuilding and redevelopment market in Seoul. The city 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 the Seoul Metropolitan Government. From 2021 to 2025, an average of 35 new zones were designated each year, double the 17 a year over the preceding decade from 2011 to 2020.
For building material makers, more redevelopment zones amount to a signal that the base for future sales is widening. Zone designation is what allows a project to move into full gear, with the establishment of an association and the selection of a contractor. From there, a project passes through project approval, management disposal approval, groundbreaking and completion before new apartments are delivered. Decisions on finishing materials and supply contracts — what directly drives building material revenue — are made around the time construction begins, but the broad outlines are drawn much earlier. That is why suppliers have little choice but to start courting clients early.
Housing permits, a leading indicator of construction starts, fell to 388,362 last year, the lowest in the 10 years from 2016 to 2025. Annual permits averaged 458,268 from 2021 to 2025, down 22.4% from the 590,388 averaged over the previous five years. With lean times continuing, suppliers need to lock in long-term work in advance.
KCC Pitches Klenze at Seoul Association Event With Quadruple-Pane Single Window
KCC (002380.KS) is also actively seeking out redevelopment associations. On the 30th of last month, the company operated two booths at a seminar held by the Seoul Redevelopment Project Association Federation, where it introduced products from Klenze, its top-tier window brand. The seminar drew association heads, preparatory committee chairs and association executives from more than 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 Seocho district, now under construction.
Its flagship M700 model is a single window with quadruple glazing, giving it a cleaner exterior and a wider field of view than a double window. "What sets us apart is the installation capability and after-service system needed for large complexes," a KCC official said. "We also have strengths in coatings, so we are proposing architectural paints and windows as a bundle to associations and builders." KCC runs showrooms in Seocho district as well, including The Klenze Gallery Seocho and a color design center, and regularly invites officials from builders and associations.
LX Hausys Targets Prime Districts, Installs Imported Fenesta Windows in Showrooms
LX Hausys (108670.KS) is putting its top-tier imported window brand Fenesta front and center as redevelopment gets under way in earnest in Seoul's prime districts — Apgujeong, Yeouido, Mok-dong and Seongsu. Fenesta was installed in the promotional showrooms that GS E&C (006360.KS) and Hyundai Engineering & Construction (000720.KS) operated in April and May this year, ahead of winning the Seongsu District 1 redevelopment project in Seoul's Seongdong district and the Apgujeong District 3 rebuilding project in Gangnam district, respectively.
"When contractors set up a promotional showroom to win a contract, 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 sales push — highlighting that Fenesta can be made up to 4 meters tall and that its frames are recessed into floors and ceilings to maximize a sense of openness — until it lands supply contracts for redevelopment projects along the Han River.