Samsung C&T Construction's Daily Risk Monitoring — 2026-06-02

Samsung C&T's construction division has expanded its urban renewal portfolio by securing the 443.4 billion won Shinbanpo 19/25 reconstruction project. Simultaneously, the company is taking steps to manage guarantee risks by signing agreements to improve subcontracting practices.

1. Key Business Developments and Risk Signals

Orders/Contracts/Construction Timeline

• Shinbanpo 19/25 Reconstruction Selection (2026-06-01): Samsung C&T was officially selected as the contractor for the integrated reconstruction project of Shinbanpo 19 and 25. The project, valued at 443.4 billion won, consists of 6 buildings and 616 units (with 533 units featuring permanent Han River views). Samsung C&T secured the bid with 59.9% of the vote, defeating POSCO E&C.

• Entering the "3 Trillion Won Club": This win brings Samsung C&T’s urban renewal order volume to over 3 trillion won, as it pushes to establish "Raemian" brand towns in key Seoul districts like Apgujeong and Banpo.

• Design Maximizing Han River Views: The company proposed an innovative design for the Shinbanpo project that guarantees Han River views for all association members and has even verified potential future view-related risks.

Risk Signals (PF/Financial/Legal Disputes)

• No Unusual Activity: There have been no reports of major financial or legal risks concerning Samsung C&T’s construction division within the last 24 hours.

2. Guarantee and Subcontracting Management Issues

Subcontracting Payments and Cost Issues

• Construction Subcontracting Improvement Agreement (2026-05-28): Samsung C&T and 18 other construction firms signed a fair trade agreement. Key points include timely payment of subcontracting fees, abolition of retention money practices, and eradication of unfair special clauses.

• Abolition of Retention Money and Unit Price Increases: The signatory companies agreed to increase supply unit prices for partners by a total of 134.3 billion won. Unfair clauses that passed industrial safety costs onto subcontractors are also set to be deleted.

Guarantee Insurance Risks

• Verification Needed: Details regarding HUG guarantees and advance payment bonds for the Shinbanpo 19/25 project are not currently public and require separate verification.

3. Strategic Analysis and Partnership Opportunities

Partnership Opportunities

• Continuous Expansion of Urban Renewal Market: As Samsung C&T actively pushes for urban renewal in key areas with the Raemian brand, there are increased participation opportunities for partners in reinforced concrete and architectural construction.

• Improved Liquidity for Partners: Timely payment of subcontracting fees and the abolition of retention money are expected to improve cash flow for partner companies.

Portfolio Changes Compared to Competitors

• Strengthened Competitiveness in Urban Renewal: By defeating POSCO E&C with a vote lead of more than 2:1, Samsung C&T has solidified its reputation in the urban renewal market.

Major Changes Since Yesterday

The confirmation of the Shinbanpo 19/25 project has expanded the urban renewal portfolio, while the concurrent construction industry subcontracting improvement agreement is helping to form a downward trend in guarantee insurance risks.

Note: Due to technical limitations in accessing the official Samsung C&T newsroom, this report is based solely on media reports and DART disclosures. Detailed information regarding the Shinbanpo project's funding structure and guarantee insurance terms requires additional disclosure or direct verification.