The Korean Architectural Design Industry.

January 2012.
Swiss Business Hub Korea.

The Korean Architectural Design Industry.

Title.

The Korean Architectural Design Industry

Language.

English

Number of pages.

24 pages

Content.

This report will provide the reader with a general overview of the Korean Architectural Design Industry.
The western concept in architectural design was established by Park Gil Yong in 1932 and it
was the start in the modern history of Koreas architectural design. In 1958, after the establishment of Korean construction laws, the Korean architectural design industry achieved high
prosperity and provided strong power to Korean economic growth. Due to the rapid economic growth in the 1970s and 1980's, several large architectural design firms became the basis
for the economic development of Korea.

Table of contents.
1. Overview of the Korean architectural design industry
2. Major architectural design companies in Korea
3. Overview of the Korean construction industry
4. Major construction companies in Korea
5. Recent trends and information in the industry
6. Business opportunities for overseas companies in the Korean market
7. Appendix

2
4
9
10
14
18
21

1. Overview of the Korean Architectural Design

Industry.
The western concept in architectural design was established by Park Gil Yong in 1932 and it was the start in the modern history of Koreas architectural design. In 1958, after the establishment of Korean construction laws, the Korean architectural design industry achieved
high prosperity and provided strong power to Korean economic growth. Due to the rapid economic growth in the 1970s and 1980's, several large architectural design firms became the basis for the economic development of Korea.

1.1 Registered architects

In Korea, a certified architect is a person who passed the national examination recognized in Korea. In other words, it means a person
who was licensed by the government.
Number of registered architects:
Year

2000

2001

2002

2003

2004

2005

2006

2007

2008

New members

919

642

468

467

421

193

502

200

377

454

13,317

13,959

14,427

14,894

15,315

15,508

16,010

16,210

16,587

17,041

Accumulated

2009

Source: Korea Institute of Registered Architects

According to the Korea Institute of Registered Architects, there were 9,787 architectural companies doing business in the Korean market
in 2010.
Numbers of employees in architectural companies by size:
Rank of architects companies

Average number of employees

1~10

370.3

11~50

103.5

51~100

50.96

101~500

21.46

501~1,000

10.74

1,001~5,000

5,001~7,000

2.13

7,001~

Source: Korea Institute of Registered Architects

As indicated in the table, most companies are small and some large architectural companies are dominating the market.

1.2 General information on architecture in the Korean design market

National turnover of architectural design and engineering in Korea is about 7.6 billion CHF and over 76% of the turnover is concentrated
in Seoul and its metropolitan area. Also, over 66% of national architects designers are acting in Seoul and the metropolitan area. When
considering the turnover of architect companies in 2008, over 20% include houses and 19% are from common houses including apartments. About 6% of the architecture design companies are using Building Information Modeling (BIM). Furthermore about 60% of companies hiring more than 100 employees are using BIM. It is estimated that the turnover of the Korean architecture design market is about
3~4% of the amount of construction orders received.

1.3 Korea Institute of Registered Architects

President: Mr. Sung IK Kang
Tel: +82 2 3415 5826
Address: 1603-55, Seocho 1-Dong, Seocho-Gu, Seoul, Korea
URL: www.kira.or.kr
The Korea Institute of Registered Architects was established pursuant to the Certified Architects Act in 1965 and is a leading expert organization representing Korea's architectural community. It aims at the competitive edge of the Korean architectural industry by enhancing public understanding of architecture, creating a comfortable urban architectural environment, promoting the advancement of architectural culture and technology and supporting research into the architecture of the future. It also works to improve the standing of architects
and promote their rights and interests, as well as to contribute to the public interest. As a chair organisation of the Architects Regional
Council Asia (ARCASIA), it is at the forefront of enhancing the international standing of Korean architecture and architects by expanding
international exchanges and cooperation.

2. Major Architectural Design Companies in

Korea.
2.1 Samoo Architects Engineers
CEO: Mr. Myung-Gi Shon
Tel: +82 2 3400 3114
Fax: +82 2 3400 3900
Address: Apple Tower, 175 Jamsilbon-dong, Songpa-gu, Seoul 138-861 Korea
URL: www.samoo.com
Company establishment: 1976
Samoo Architects & Engineers is an architectural design firm headquartered in Seoul, Korea with diversified services including architectural design, urban planning, interior design, engineering, and construction management services. Samoo has become one of the worlds
largest architectural firms with five offices worldwide. Employing more than 1,000 professionals, Samoo is involved in a diverse portfolio
including office, civic, cultural, healthcare and biotechnology, residential, hospitality, academic, high-tech industrial, transportation, and
mixed-use projects. In 2011, Samoo was awarded with the prestigious 'Red Dot Design Award' and in 2012 it was ranked 9th globally by
the BD World Architecture Top 100 and 2nd among architectural design firms in the Pacific Rim.
Annual turnovers and number of employees:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

607

122,450

99.6

2007

772

156,127

127.0

2008

836

173,556

141.2

2009

920

178,775

145.4

2010

1.060

235,769

191.8

CHF1 = KRW 1,229.14 (January 2 2012)

2.2 Heerim Architects & Planners

CEO: Mr. Jeong, Young Kyoon
Tel: +82 2 3410 9006
Fax: +82 2 3410 3090
Address: Heerim Bldg. 726-1 Suseo-dong, Kangnam-gu, Seoul 135-885 Korea
URL: www.heerim.com
Company establishment: 1970
Heerim Architects & Planners is a Korea-based company engaged in construction-related services. The company offers design and supervision services of construction, including architectural designing, interior design, landscape design and construction management
services. The company is also involved in the development of real estate leasing and consulting, construction technology software and
the book publishing business. In 2010, the company obtained 71% of total revenue from its design and supervision services business.
The company distributes its business mainly within the domestic market and to overseas, including Vietnam, Philippines, UAE and Azerbaijan. The company focuses on architectural design and construction management, including urban master planning, landscape and
interior design.

Annual turnover and number of employees:

Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006
2007

790

91,463

74.4

891

120,135

97.7

2008

1,037

155,837

126.8

2009

1,060

157,901

128.5

2010

1,034

160,397

130.5

CHF1 = KRW 1,229.14 (January 2 2012)

2.3 Dongmyeong Engineering Construction & Architecture (DMEC)

Chairman: Mr. Dong Soo Shin
Tel: +82 31 706 1962
Fax: +82 31 706 1683
Address: Jeong Min building, 53 Maehwa-ro, 382-2 Yatap 1-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, 463-827, Korea
URL: www.dmec.co.kr
Company establishment: 1960
DMEC has contributed to achieve national welfare through the countrys development and its expansion of social and industrial infrastructure. DMEC is the most admired engineering consulting firm with the longest business history in Korea. DMEC is a leading engineering
consulting firm providing engineering consulting and design services in wide areas such as urban planning and its development, landscape architecture, roadway, railway, subway, water supply, sewerage treatment, environment, water resource as well as mechanical and
electrical work (including feasibility study and financial planning). DMEC has successfully performed in planning, designing, and supervising major national transportation network projects over 46 years to construct major expressways and national highways whereof one was
the first national expressway linking Seoul and Busan.
Annual turnover and number of employees:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

870

87,756

71.4

2007

862

94,139

76.6

2008

963

104,210

84.8

2009

1,110

130,840

106.5

2010

1,187

133,420

108.5

CHF1 = KRW 1,229.14 (January 2 2012)

2.4 Junglim Architecture

CEO: Mr. Jin Gu Kim
Tel: +82 2 708 8600
Fax: +82 2 708 8708
Address: Junglim Building, 187-1 Jongro-gu, Yeongun-dong, Seoul, 110-460, Korea
URL: www.junglim.com
Company establishment: 1967

Junglim Architecture has approximately 500 employees who are working for overseas design and construction of large-scale international
projects. The companys work exhibits an unique design sensibility and cutting-edge technology. Its services are architectural design,
urban design, business planning, construction management and supervision.

Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

255

52,910

43.0

2007

284

8,810

7.2

2008

451

68,316

55.6

2009

507

71,915

58.5

2010

525

77,715

63.2

CHF1 = KRW 1,229.14 (January 2 2012)

2.5 Kunwon Architectures Planners Engineers

CEO: Mr. Hoi Hoon Kim
Tel: +82 2 527 1234
Fax: +82 2 527 1272
Address: 678-36 Yeoksam-dong, Gangnam-gu, Seoul, Korea
URL: www.kunwon.com
Company establishment: 1984
Kunwon has been consistent in practicing in the field of urban architecture since 1984. It has been exhibiting outstanding performance in
residential complex projects and urban planning projects. The company has successfully performed design cooperation through global
activities. The company is continuously expanding its international business by establishing overseas branches in Shanghai, Guam and
Dubai.
Annual turnover and number of employees:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

258

65,237

53.1

2007

311

68,610

55.8

2008

350

73,576

59.9

2009

362

63,790

51.9

2010

317

50,430

41.0

CHF1 = KRW 1,229.14 (January 2 2012)

2.6 Haeanh Architecture

President: Mr. Sehan Yoon
Tel: +82 2 3438 8000
Fax: +82 2 3438 8100
Address: Haeahn Bldg. 650-3 Yeoksam-dong, Gangnam-gu, Seoul, 135-913, Korea
URL: www.haeahn.com
Company establishment: 1990

HAEAHN is leading in designing of housing and commercial objects, corporate office and mixed use facilities. Especially in mixed use
facilities (mixed use housing, commercial, offices, transportation facilities), HAEAHN possesses the best know-how in the domestic market. Also, HAEAHN has achieved success in many fields, including commercial environment design, which is still new to the domestic
market as well as urban design programming, developing business analysis, interior design and many other architectural services.
Annual turnover and number of employees:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

225

33,313

27.1

2007

336

55,568

45.2

2008

386

53,996

43.9

2009

420

59,386

48.3

2010

456

58,215

47.4

CHF1 = KRW 1,229.14 (January 2 2012)

2.7 Mooyoung Architectures and Engineers

CEO: Mr. Kil Won An
Tel: +82 2 3011 1400
Fax: +82 2 3454 1898
Address: Geondong B/D 945-30, Daechi-dong, Gangnam.gu,Seoul, Korea
URL: www.mooyoung.com
Company establishment: 1980
Mooyoung started its business as Dongin Architects Group in 1980. It has led Koreas architectural culture in the fields of housing complex planning, architectural design, construction supervision, engineering and computer applications.
Annual turnover and number of employees:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

241

46,635

37.9

2007

270

52,484

42.7

2008

316

64,469

52.5

2009

358

58,481

47.6

2010

303

50,534

41.1

CHF1 = KRW 1,229.14 (January 2 2012)

2.8 DA Group Engineering

CEO: Mr. Hyun Ho Kim
Tel: +82 2 541 0215
Fax: +82 2 541 0214
Address: Dongsan B/D 2F, 890-38 Daechi-dong, Gangnam-gu, Seoul, 135-280, Korea
URL: www.dagroup.kr
Company establishment: 2001

Since its establishment, the DA Group has been focused on design development, construction development, construction management,
urban development, master project, resort development project, environment ecology project and scenery project.
Annual turnover and number of employees:
Year

Number of employees

2006

130

Turnover/Millions of Won

Turnover/Millions of CHF

2007

289

25,589

20.8

2008

258

40,357

32.8

2009

275

52,091

42.4

2010

250

46,360

37.7

CHF1 = KRW 1,229.14 (January 2 2012)

2.9 Space Architecture

Chairman: Mr. Sang Leem Lee
Tel: +82 2 3670 3300
Fax: +82 2 745 2677
Address: 55 Jae-dong, Jongno-gu, Seoul, Korea URL: www.spacea.com
Company establishment: 1960
Founded in 1960, the Space Group has committed itself for nearly 50 years to create a better architectural environment and to promote
cultural development. Over the years, the Space Group has received great support and attention from governmental, industrial and individual clients successfully carrying out over 1,000 projects to date. Space Group has grown both in size and in quality. It now has offices
in eight cities worldwide in Seoul, New York, Dubai, Manila, Alger, Almaty, Luanda and Tripoli and employs 600 professional staff. Business areas are architectural design, urban design, space magazine and book publication, construction business management and engineering. The Space Group strives to offer one-stop solutions to architectural and urban problems with passion, experience and expertise.
Annual turnover and number of employees:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

366

57,293

46.6

2007

450

58,861

47.9

2008

264

50.106

40.8

2009

230

51,430

41.8

2010

210

49,551

40.3

CHF1 = KRW 1,229.14 (January 2 2012)

3. Overview of the Korean Construction Industry.

In the 1960s, the period of Korean economy growth, the Korean construction industry has experienced strong growth. At this time, the
number of construction companies rapidly increased. In the middle of 1970, the government made large-scale industrial complexes and
factories of international scale by private hands. So, the Korean exporting structure had been changed to the heavy industry.
The Korean construction industry has been accelerating in the last 40 years with economic growth aspects of scale and quantity. Especially in the 1970s, construction in the Middle East and the domestic apartment construction market had played an important role. During
these 40 years, the Korean construction industry has gathered crucial experience such as the acquirement of construction techniques of
advanced countries and in training construction technicians.
The Korean construction industry has achieved a remarkable advance in the entire world in a short period of time. Due to the small country size and territorial division, poor resources and the Korean War, the national economy had been in bad condition. But Korean people,
based on national characteristics, had taken-off the construction industry in the world. Currently, there are over 60,000 construction companies in Korea and they cover over 17% of Koreas GDP.
As the Korean construction market is open to the world, foreign management practices of each individual country has to be understood in
order to compete with Korean construction companies.

3.1 Construction Association of Korea

Chairman: San Kyu Choi
Tel: +82 2 3485 8200
Address: 135-701 The Hall of Construction B/D. 71-2 Nonhyun-Dong, Kangnam-Gu, Seoul, Korea
URL: www.cak.or.kr
The main purpose of the association is to maintain the prestige of the construction contractors, to promote mutual cooperation amongst
contractors, to protect their rights and interests and to strive for the improvement of construction-related legislations, construction economy policy and construction technology.

4. Major Construction Companies in Korea.

4.1 Hyundai Engineering and Construction
CEO: Mr. Soo-Hyun Jung
Tel: +82 2 744 1114
Fax: +82 2 743 8963
Address: 140-2, Gye-dong, Jongno-Gu, Seoul, Korea
URL: www.hdec.kr
Company establishment: 1947
Hyundai Engineering & Construction is involved in the civil engineering and construction business. The company operates its business
under six segments: civil engineering segment, which constructs roads, bridges, harbors, landfill areas and railways; construction segment, which constructs commercial buildings, office buildings and factories; housing segment, which is engaged in the construction, redevelopment, rebuilding and remodeling, as well as distribution of residential buildings; plant segment, which constructs energy plants,
petrochemical plants and environment plants; power generation segment, which is involved in construction of power transmission and
power generation plants, as well as a nuclear energy segment, which constructs nuclear energy plants.
Annual turnover and number of employees:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

3,474

5,084.989

4,137

2007

3,688

5,649.098

4,596

2008

3,686

7,271,097

5,915

2009

3,927

9,278,579

7,546

2010

3,795

10,004,558

8,139

CHF1 = KRW 1,229.14 (January 2 2012)

4.2 Samsung C&T (Construction and Trading)

CEO: Mr. Yeon Jung Jung
Tel: +82 2 2145 5114
Fax: +82 2 2145 3114
Address: Samsung Corporation Bldg, 1321-20 Seocho 2-Dong, Seocho-Gu, Seoul, 137-857 Korea
URL: www.secc.co.kr
Company establishment: 1952
The Samsung Engineering & Construction Group was established in 1977 and joined Samsung C&T in 1995. Samsung C&T is engaged
in the industrial buildings and warehouses sector. It operates its business under two divisions. Its construction business division deals in
the construction works, such as commercial and industrial building construction; civil engineering works, including construction of subways, roads, bridges, harbors, airports and large-scale reclamation projects. Its trading business division deals with international trading
of chemicals, steel products, electronic materials, textiles and others products, as well as overseas resource development projects such
as the Balkhash power plant project, the Indonesia biodiesel palm plantation project and the Mexico Manzanillo LNG receiving terminal
project.

10

Annual turnover and number of employees / Construction and engineering division only:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

4,343

9,727,981

7,914

2007

4,141

9,730,972

7,916

2008

4,476

11,811,592

9,609

2009

4,665

10,875,929

8,848

2010

5,049

13,044,076

10,612

CHF1 = KRW 1,229.14 (January 2 2012)

4.3 GS E&C
CEO: Mr. Myung Soo Huh
Tel: +82 2 728 1112
Fax: +82 2 728 1203
Address: GS Yeokjeon Tower 537 Namdaemun-Ro 5-Ga, Joong-Gu, Seoul, Korea
URL: www.gsconst.co.kr
Company establishment: 1969
GS E&C has established its status as a top-ranking domestic company since its foundation in 1969 by achieving tremendous growth in
the fields of architecture, civil engineering, housing, plant, environment and power plant. In 1996, GS E&C became the first in the industry to adopt a Project Management System using EVM (Earned Value Management) to link schedule with profit/loss in Korea. In 2006, the
TPMS (Total Project Management System) was completed by adding the concept of Lean Construction and JIT (Just In Time) to the
Project Management System.
Annual turnover and number of employees:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

4,147

5,745,165

4,674

2007

4,082

6,011,536

4,890

2008

5,378

6,865,848

5,585

2009

4,972

7,376,925

6,001

2010

5,365

7,892,763

6,421

CHF1 = KRW 1,229.14 (January 2 2012)

4.4 POSCO E&C

CEO: Mr. Dong Hwa Chung
Tel: +82 32 748 2114
Fax: +82 32 748 4000
Address: 35 Songdo-dong, Yeonsu-gu, Incheon, Korea
URL: www.poscoenc.com
Company establishment: 1994

11

POSCO E&C is a general construction company established in 1994 and has been implementing a series of projects and earned trust
from its customers in diverse industries including construction for steel plants, environmental plants, power plants, new city development
& architecture, social overhead capital (SOC) and skyscrapers. POSCO E&C has also expanded its business to the development of new
cities and complex such as the Songdo International Business District in South Korea and the North An Khanh New City in Vietnam.
Furthermore they engage in new and recycling energy sectors including building power plants for solar, wind and tidal energy. In addition,
POSCO E&C has been expanding to countries in Latin America, the Middle East and Eastern Europe.
Annual turnover and number of employees:
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

2,359

3,670,409

2,986

2007

2,580

3,468,524

2,821

2008

2,955

4,517,303

3,675

2009

3,074

6,675,711

5,431

2010

3,556

6,237,953

5,075

CHF1 = KRW 1,229.14 (January 2 2012)

4.5 Daelim Group

CEO: Mr. Hae Wook Lee
Tel: +82 2 2011 7114
Fax: +82 2 2011 8000
Address: 146-12 Susong-dong, Jongno-Gu, Seoul, Korea
URL: www.daelim.co.kr
Company establishment: 1939
The Daelim Group started with the establishment of Daelim Industrial in 1939. This flagship unit leads the engineering & construction and
petrochemical operations. Daelim is ranked 22nd among all Korean business groups and consists of 12 affiliates together with organizations devoted educational and cultural pursuits. Daelim groups activities focus on building & housing construction, civil engineering, industrial facilities, petrochemicals, information & communications, automobiles, education and cultural activities. Importantly, the Construction Division at Daelim Industrial has been in operation for 73 years, making this Koreas oldest company in this field. Over its long
history, the company has been involved in numerous infrastructure projects including Koreas National Assembly Building, Seoul Olympic
Stadium, Cheonggye Stream Restoration, the Seoul-Busan Expressway, and Seohae Grand Bridge. Subsequently, the company has
gained recognition as a global construction and engineering player, performing diverse civil engineering, building construction and plant
construction projects in 24 countries.
Annual turnover and number of employees
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

2853

4,629,282

3,766

2007

3071

4,939,614

4,018

2008

3256

5,892,212

4,793

2009

3762

6,274,852

5,105

2010

4110

6,198,256

5,042

CHF1 = KRW 1,229.14 (January 2 2012)

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4.6 Daewoo E&C

CEO: Mr. Jong Uk Seo
Tel: +82 2 2288 3114
Fax: +82 2 2288 3113
Address: Daewoo E&C, 57 Sinmunn0 1-ga, Gongno-gu, Seoul 110-713, Korea
URL: www.daewooenc.com
Company establishment: 1973
Since being founded in 1973, Daewoo E&C has led the development of Korea construction industry with its strong technological powers
and quality expertise, while carrying out projects in more than 30 countries across the world. The company has built social infrastructure
of diverse fields such as roads, railroad, bridges, harbors, airports, and residential and non-residential buildings. Also, it has constructed
large-scale industrial facilities such as thermal, nuclear and tidal power generation facilities and LNG tanks. The companys core businesses are civil & housing, power & industrial plants, architectures, LNG facilities, and large-scale overseas projects.
Annual turnover and number of employees
Year

Number of employees

Turnover/Millions of Won

Turnover/Millions of CHF

2006

3,232

5,729,109

4,661

2007

3,420

6,066,559

4,935

2008

3,651

6,577,701

5,351

2009

4,811

7,097,387

5,774

2010

4,594

6,734,285

5,478

CHF1 = KRW 1,229.14 (January 2 2012)

13

5. Recent News and General Information in the

Industry.
5.1 Foreign architects dominate Koreas skyscraper design field
November 19, 2011 / Dong-A Daily Newspaper
What do the 68-story Northeast Asia Trade Tower, which stands in Songdo International City in Incheon, the 123-story Lotte Super Tower,
whose construction is underway in Jamsil, Seoul, and the 108-story WBC Solomon Tower, whose construction will soon begin at Centum
City in Haeundae, Busan, have in common?
They are Koreas flagship skyscrapers with a height of about 300 meters and are set to be built within five years. All were designed by
famous foreign architectural design companies. Skyscraper projects had suffered setbacks due to a slump in the real estate market but
are set to rebound. The design field, however, which is considered the bread and butter of construction technology for skyscrapers, is
dominated by foreign companies. Big-name foreign architects are taking all design work for skyscraper projects in Korea.
The design of the Yongsan International Business District, which is considered Koreas largest urban development project, has been
conducted solely by foreign architectural design companies. Korea depends on foreign help for the design of skyscrapers, each of which
costs tens of millions of dollars. Korea is considered a global leader in construction capacity as virtually the only country with experience
in building skyscrapers standing 150 stories or higher. But it is hardly competitive and lags far behind in architectural design. As Korean
architectural design companies have been excluded from the initial design phase, criticism has followed on the nations excessive dependence on foreign design technology. Construction experts say Korean authorities should consider Korean companies that have basic
skills and capacity but lack experience to gain a track record.
Foreign domination of design work on Koreas largest construction projects
For the Yongsan project, whose design work costs 326.9 billion won (290 million dollars) alone from the total cost of 31 trillion won (2.72
billion dollars), 19 architectural design companies in the U.S., Europe and Japan are taking charge of the entire process. This encompasses the setting of a master plan to establish the entire development process and design of buildings for all respective zones. The
project has onboard renowned foreign architects, including overall planning coordinator Daniel Libeskind, the famed architect who led the
design of the reconstruction project at World Trade Center in New York; Italian-born Renzo Piano who designed Pompidou Center in
Paris; American architect Adrian Smith, who designed the worlds tallest building Burj Khalifa; and fellow American architect Helmut Jahn,
who designed the Sony Center in Berlin.

5.2 Korea eyes $70 billion in overseas construction orders in 2012

December 27, 2011 / Yonhap News
Korea will seek to boost its overseas construction orders to $70 billion next year as part of efforts to revive the slowing construction industry. The government also plans to spend more than 60 percent of its budget for the construction and employment sectors within the first
half of next year, the Ministry of Land, Transport and Maritime Affairs said in a policy report to the president. The amount of overseas
construction orders is expected to reach $58.5 billion this year, a little short of the country's earlier goal of $60 billion. The ministry, however, decided to raise its goal by over 16 percent to $70 billion for 2012 amid growing demands in Asian and Middle Eastern countries, it
said.
"Even though there are concerns of a global economic recession next year, we expect to see a series of reconstruction projects in the
Middle East following the democratization movement there," a ministry official, Park Min-woo, told reporters. "We expect orders from Asia

14

and the Middle East to continue growing." To help boost the domestic market, the government will authorize the construction of 450,000
homes, including 150,000 housing units set aside specifically for low-income families, according to the ministry. In addition, the ministry
said it plans to spend 64 percent of its 21.5 trillion won ($18.6 billion) for the construction and employment sectors within the JanuaryJune period of the coming year.

5.3 Korea ranks 9th in construction competitiveness

January 15, 2012 / Korea Herald Newspaper
Koreas global competitiveness in the construction sector took 9th place in a ranking launched by the government, underscoring its need
to enhance transparency and design skills. The Land Ministry said Sunday it has developed an index with the Korea Institute of Construction Technology to assess and compare the fundamentals of the industry as well as the capabilities of local builders between 22 leading
economies. The index takes account of four dimensions of each market size, growth rate, stability and risks. As for the companies, it
focuses on their competitiveness in project execution, design and price, the ministry said.
The U.S. topped the list as it received high marks for its huge market size, low risks and innovative designs. China came in second with
an overall score of 91.4, trailed by Italy, the U.K. and Germany. Korea earned high grades in price competitiveness and growth pace, but
it lagged far behind in areas like market transparency and design competency. Korean construction firms should make continuing investment in technology and diversify their project portfolio to win competitions with China and other leaders, said Sohn Tae-hong, a senior researcher at the GS Research Institute of Construction & Economy. Despite their increasing overseas orders, they have a long way
to go to catch up with those in Japan or Italy in terms of technology. Builders led by Samsung, POSCO, Hyundai and GS have been
aggressively expanding abroad in recent years, taking advantage of lower project costs relative to their growing technological clout.

5.4 Korea to Build Eco-Friendly Houses

October 30, 2009 / Korea Times
The government will encourage the construction of environmentally friendly houses as part of its ``green growth'' programs, a ranking
government official said. Under the slogan of `let's create green space,' the administration will actively support the green home industry,''
he said. ``Officials of Cheongwadae (Korean Presidential Office) and related ministries are preparing specific measures,'' the official said
on condition of anonymity. The plan will be added to the government's green policy, which focuses on the four-river refurbishment project,
eco-friendly transportation such as bicycle-exclusive roads, and the development of electric cars.
On Nov. 5, President Lee Myung-bak is expected to review the final draft of the plan jointly prepared by government offices, including the
Ministry of Land, Transport and Maritime Affairs, sources said. Under the plan, builders would be required to meet stricter environmental
standards if a construction project involves more than 20 houses at one site. Conglomerates and state-funded firms will also be obliged to
maintain their buildings eco-friendly. The sources said the Lee administration wants the eco-friendly housing industry to become the nation's green-growth driver and a major export item. They pointed out that the administration is planning to launch the tentatively named
Future City Research Institute to add momentum to the fledgling industry. At a ceremony to mark the inauguration of the Korea Land and
Housing Corp. on Oct. 7, President Lee instructed the public firm to build eco-friendly houses for energy conservation. I believe, once the
public firm takes the lead, private businesses will follow suit,'' Lee said.
A presidential aide said that the measure will help create decent'' jobs and to assist the construction industry to become a future growth
engine. In August last year, President Lee declared that low carbon, green growth'' would be the new national vision for the next decade.
Early this year, Lee also announced the Green New Deal'' aimed at creating 960,000 new jobs through investing 50 trillion won ($42.3
|

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billion) through 2012. Under the Five-Year Plan for Green Growth, the government has set the goal of making Korea one of the world`s
top seven countries in terms of green competitiveness by 2020 and a top five member by 2050.

5.5 Korean houses

In the case of individual domiciles, although traditional Korean houses continued to exist into 1960s, most of new homes in cities took on
a Euro-American style in brick, tile, and cement due to the limited supply of timber. Alongside the importation of foreign elements, the
floors and rooms surrounding the living room often had heated floors, a tradition feature of Korean houses. In other words, the individual
domicile became a fitting fusion of Korean living style and tastes into the structure of the Euro-American style house.
The population of Seoul was about 3 million in 1963, 8.5 million in 1981 and over 10 million in 2000. The government attempted to solve
the housing problems by redeveloping huge apartment complexes. These apartments began with a model in Yeouido in 1971. Buildings
tended to be built quickly with little regard for local identity. As the need for housing for workers increased, traditional houses were razed,
hundreds of simple cheap apartments were put up very fast, and bedroom communities on the periphery of the urban centers grew, built
and financed as company housing. With the enhancements in technology, Korean construction companies met the domestic market for a
higher quality of living. Those apartment complexes became the center of the Korean economy. All other Korean cities adhered to the
model of apartments in Seoul. In 1990s, more than half of all Koreans lived in standardized apartment blocks covering vast areas of cities.
The apartment was not only a place to live, but also a means of investment and a sign of wealth.

5.6 New towns

In the last couple of decades, the Korean government has developed and redeveloped many areas as new towns. Korean architectural
designers had designed the new towns and the name of master architecture and master planner became a name for a person who designed these new towns.
Songdo new town

It is being developed on 1,500 acres of land in Korea along Incheon's waterfront, 40 miles from Seoul and just 7 miles from
Incheon International Airport. Developed by Gale International
and POSCO E&C, this master-planned metropolis is a model of
sustainable, city-scale development and innovation. The first
phase of the new international city opened in August 2009. It was
designed by Kohn Pedersen Fox and the 100 million square foot
master plan includes commercial office space, residences, retail
shops, hotels as well as civic and cultural facilities.

5.7 Sports related architectures

Korea hosted the 1986 Asian Games and the 1988 Olympic games, which spurred waves of new building activity. To market the country
globally, international architects were encouraged to submit their designs and introducing alternative concepts for modern architecture.

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Seoul World Cup Stadium

The Seoul World Cup Stadium, also known as Sangam Stadium, is

located in Seongsan, Mapo-gu, Seoul, South Korea. It was built for
the 2002 FIFA World Cup and opened in 2001. It was designed to
represent the image of a traditional Korean kite. The stadium has a
capacity of 66,806 seats, including 816 seats for VIP, 754 seats for
press and 75 private Sky Box rooms, each with a capacity for 12 to
29 persons.
The Seoul World Cup Stadium, the largest soccer-only stadium in
Asia, proudly exhibits its Korean roots. The roof, a real architectural gem, has the shape of a traditional Korean kite, is 50 meters
high, is supported by 16 masts and covers 90% of the stadiums
seats.
Korea since the 1980s had its most notable architectural works driven by sports; the Asian Games (1986), the Olympics (1988), and the
2002 World Cup stadiums, as well as great support being given by the Chaebols (Korean conglomerate) such as the Samsung Group
which itself owned the sports teams for marketing purposes.

5.8 Current Korean architectures

It was not until the late 1980s and early 1990s that an entirely new generation of Korean architects had the freedom and the financing to
build Korean architecture in a distinct Korean manner. This was a result of architects studying and training overseas such as in Europe,
Canada and America. There was a new determination that nationalistic architectural elements had to be revived and refined.
Much of the growth of new architecture came from retail stores, clothing shops, bistros, cafes, and bars and the underside of architectural
commissions, rather than from major government contracts or the financial and corporate community. Korean headquarters of foreign
corporations brought in an entirely new spirit of architecture to define their own visions.

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6. Business Opportunities for Foreign

Companies in the Korean Market.
6.1 Major design activities by foreign architecture designers in Korea
Adrin Smith, AS+GG: Yongsan Boutique Office
Ben van Berkel, UN Studio: Apgujeong Galleria Renovation and Suwon I-Park City
Curtis Fentress: Incheon International Airport
Daniel Libeskind: Yongsan International Business District, I-Park Tower and SK HQ Building
Dominique Perrault: Ehwa University ECC, Yeosu Literary Park
Jean Nouvel: Samsung Leeum Museum 2 and Ttukseom Galleria Foret
KPF(Kohn Pedersen Fox Architects): Seoul Jamsil Lotte Super Tower, Seoul Global Business Center,
Yongsan International Business District Landmark Hotel
Marrio Botta: Kyobo Tower, Samsung Leeum Museum and Seopjikoji Agora
Rafael Vinoly: Jongno Tower
Ram Koolhas, Office for Metropolitan Architecture: Reeum Museum Samsung Child Education and Culture Center,
Museum of Art Seoul National University and Prada Transformer Project
Renzo Piano, RPBW: KT HQ Building
Richard George Rogers: Yeouido Parc 1
Ron Arad: Moonshin Atelier in Jangheung, Gyeonggi Province
Terry Farrell & Partners: The Integrated Transportation Centre Incheon International Airport
Zaha Hadid: Dongdaemun Design Plaza and Park

Incheon Bridge
Incheon Bridge is the worlds fifth cable-stayed bridge on sea that connects Incheon Airport with Incheon Songdo International City. The main
design and build contractor was Samsung C&T Corporation. Additional
contractors that contributed to the construction of the bridge were Halcrow, Dasan Consultants, and Arup. It is the first private investment
project supervised by AMEC, a UK company with advanced project
management skills.

Museum of Art, Seoul National University

It was established in 2005, with contributions from the Samsung Cultural
Foundation. The building was designed by the Dutch architect, Rem
Koolhaas, with construction entrusted to the Samsung Group. Its total
4,450 sqm structure comprises three stories above as well as below
ground. Its major feature is the forward area which almost appears to be
floating in the air.

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Kyobo Tower
It is located in the capital of South Korea, Seoul, where the new
headquarters of the insurance company bears the same name. It was
designed by Marrio Botta and constructed between 1999 and 2003.
The principal architect reshuffled 17 projects with different heights and
finishes. It is one of the tallest buildings in the urban Korean area,
home to nearly 12 million people. Mainly offices are located in the
Kyobo Tower. Despite of this, you can see a large number of construction details similar to those used in religious or cultural buildings.

Ewha Campus Center (ECC)

Designed by the French architect Dominique Perrault, this rather nice
piece of modern architecture leads like a valley from the front gate to
the Main Hall, and contains administrative offices, classrooms, shops
and rest areas. The start of construction was in 2004 and it was completed in 2008. The size of the site area is 19,000 sqm and the builtup size is 31,000 sqm.

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6.2 How to enter into the Korean architectural market

Korea is one of the most exciting and dynamic markets in Asia. We believe it offers huge opportunities to foreign companies but can also
be a challenging place to do business. It is very important and advisable to have an introduction to any person or company with whom
you want to do business. Finding the right partner and getting good local advice is an important key to successfully do business in Korea.
As evidenced in major architectural projects in Korea, foreign architect designers and companies are actively involved in the Korean
market. Since Swiss architects and architectural design companies are leaders in the specific design sectors and their works are very
competitive in quality, they have good opportunities in the Korean market.
Korea will host the Winter Olympics Games at PyeongChang in 2018. This will be a good opportunity for Swiss architects and architectural design companies in the market of ski resorts, winter sports facilities, etc. Korea has never hosted any Winter Olympics Games before.
As the life of Korean people has improved recently, Korean people are investing in sub-urban houses (country houses) and it will be a
good business opportunity for Swiss architects and architectural design companies.
Swiss architects can probably not compete with Korean architecture design companies in terms of price. They should compete against
Korean competitors in terms of quality and creativeness factors. In order to enter the Korean market, Swiss architects should collaborate
with major Korean architecture design companies. It is also recommended that Swiss architects target high value-added design, which
could be competitive against the services of Korean architects.

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Appendix Information sources.

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Korean Statistical Information Service

Korea Trade Investment Promotion Agency
The Korea Chamber of Commerce and Industry
Ministry of Knowledge Economy
Construction and Economy Research Industry of Korea
Korea Institute of Registered Architects
Korea Institute of Design Promotion
Ministry of Land, Transport and Maritime Affairs
Korea Institute of Construction Technology
Presidential Commission on Architectural Policy
Architectural Institute of Korea

http://statistics.mke.go.kr
http://www.kotra.or.kr
http://www.korcham.net
http://www.mke.go.kr
http://www.cerik.re.kr
http://www.kira.or.kr
http://www.kidp.or.kr
http://www.mltm.go.kr
http://www.kict.re.kr
http://www.pcap.go.kr
http://www.kicaspace.com

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