Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
High-end apartment brand marketing faces consequences
Acro River Park apartment complex in Seoul's Seocho District / Newsis
By Park Jae-hyuk
More landlords want 'Acro,' 'The H,' 'Le El' for names of new apartments
The recent boom in high-end brand marketing in Korea’s apartment construction market has come at a cost as an increasing number of landlords refuse to place orders with companies that reject their requests to use premium brand names such as “Acro,” “Le El,” “The H” and “Summit” for new residential complexes.
After several disputes over naming rights led some landlords to switch contractors, construction firms now face a dilemma over whether they should keep their luxury brands exclusive or allow broader use.
Earlier this month, landlords of Sangdaewon Redevelopment Zone 2 in Seongnam, Gyeonggi Province, began seeking a new construction firm to replace DL E&C after the company refused to name their new complex “Acro” instead of “e-Pyeonhansesang,” its midrange brand.
DL E&C faced a similar issue in the past with landlords of Seoul’s Sindang Redevelopment Zone 8, who canceled their contract in 2023. They turned to POSCO E&C, which proposed using its high-end brand “Hauterre," instead of the mid-tier “The Sharp.”
Visitors line up to see model homes for The H Xi Gaepo in Seoul, March 16, 2018. Yonhap
Likewise, landlords of Heukseok Redevelopment Zone 9 in Seoul canceled their contract with Lotte E&C in 2020 when the company declined their request to use the luxury brand “Le El” instead of “Lotte Castle.” The following year, they selected Hyundai E&C, which agreed to use its premium brand “The H” instead of “Hillstate.”
In Seoul’s Noryangjin Redevelopment Zone 6 and Yeonhee Redevelopment Zone 1, landlords persuaded SK Ecoplant to use its top-tier brand “De’Fine” rather than “View.”
Those landlords argued that adopting premium brand names boosts the perceived quality and value of their properties, even if it raises short-term costs or delays construction.
According to a nationwide survey of 17,100 adults by real estate app operator Dabang, 35.4 percent said they preferred apartments with luxury brand names because of their upscale image. Other reasons cited were excellent design and quality materials (25.2 percent), brand scarcity (14.4 percent) and well-equipped community facilities (14.2 percent).
Construction firms, however, warn that overusing luxury brands could ultimately dilute their value.
“Premium apartment brands were originally introduced to justify high prices in affluent areas such as Seoul’s Gangnam District and along the Han River,” a construction industry official said. “But these names are becoming less exclusive as more companies give in to landlords’ requests.”
Despite concerns about brand inflation in apartment names, builders continue using high-end marketing tactics to attract clients.
GS E&C recently declared its “High-end above High-end” vision in a bid to win an order for the Seongsu Redevelopment Zone 1 project in Seoul, even after deciding in 2024 to retain its main brand “Xi” without creating a separate luxury line.