Samsung C&T Construction's daily risk monitoring — 2026-06-15

1. Key business changes and risk signals

Orders/Contracts/Construction Schedules:

• Won Bangbae Shin-Samho Reconstruction Project (653.8 billion KRW): Samsung C&T has been officially selected as the contractor for the Bangbae Shin-Samho apartment reconstruction project in Seocho-gu, Seoul. The new complex will be named "Raemian Le Ferrium" (928 units across 7 buildings).

• Significantly Raised Annual Urban Renewal Order Target: Samsung C&T CEO Oh Se-chul has increased the company's annual urban renewal order target from 7.7 trillion KRW to 13 trillion KRW. With over 4 trillion KRW in orders expected for the first half of the year, the company is aggressively building on its second-place industry ranking from last year.

• Collaboration on Seongsu District 3 Global Landmark Design: Samsung C&T has begun design work for the redevelopment of Seongsu District 3 in Seongdong-gu, Seoul, in partnership with the British architectural firm Foster + Partners, accelerating the development of a world-class project.

Overseas/Plant/Data Center Opportunities: None reported.

Risk Signals (PF/Financial/Legal Disputes): None reported.

1 sources

etoday.co.kr

삼성물산 건설, 6538억원 규모 방배신삼호 재건축 시공사 선정 - 이투데이

2. Guarantee and subcontracting management issues

Subcontracting Costs and Cost Issues:

• Strengthening Partnerships through Fair Trade Agreements: Samsung C&T and 18 other construction companies signed an agreement with the Korea Fair Trade Commission to improve unfair trade practices, pledging to make timely subcontract payments, abolish retention money practices, and eliminate unfair special clauses.

• Increase in Subcontractor Unit Prices: The abolition of retention money—a chronic issue in the construction industry—and the removal of unfair clauses that shifted industrial safety costs onto subcontractors have led to a 134.3 billion KRW increase in supply unit prices.

Guarantee Insurance Risks:

• Mandatory Payment Guarantees and New Exceptions: With recent amendments to construction subcontract payment guarantee regulations, an exception has been created where additional guarantees are not required for remaining balances of 10 million KRW or less, easing the burden for small-scale projects.

Items to Verify:

• Need to confirm whether Samsung C&T's "zero" HUG (Korea Housing & Urban Guarantee Corporation) guarantee fee benefit persists due to its top-tier (AA+) credit rating.

3. Strategy analysis and partnership opportunities

Collaborative Business Opportunities:

• Anticipated increase in subcontracting contracts due to expanded urban renewal portfolio; more opportunities for partners in areas like steel, concrete, design, and supervision as Raemian reconstruction projects grow.
• Expectations for improved profitability among partners due to the elimination of unfair clauses and the creation of a fairer trading environment.

Portfolio Changes Compared to Competitors: Samsung C&T’s aggressive bidding strategy, aiming to surpass 4 trillion KRW in the first half of the year, stands out significantly compared to its competitors.

Major Changes from Yesterday: The final confirmation of the Bangbae Shin-Samho reconstruction contract and the official upward adjustment of urban renewal targets have strengthened the momentum for first-half orders.

Other notable points: Samsung C&T’s ability to secure financing at the lowest interest rates based on its top-tier credit rating, combined with zero HUG guarantee fees, remains a key competitive factor for association members to consider during the bidding process.