HanmiGlobal in spotlight as need emerges for construction safety control

By Baek Byung-yeul

HanmiGlobal has been in the spotlight, as the construction project management company is expected to expand into managing urban development projects such as the reconstruction of existing apartment complexes, an industry official and analyst said Monday.

The company is the country's largest player in the field of developing, handling and executing construction projects, generating profits by managing the construction of large buildings, infrastructure and overseas plants.

However, the market thinks HanmiGlobal will be able to expand its footprint in the apartment reconstruction sector as its capability to safely manage construction projects and maintain quality is getting highlighted after a series of construction accidents such as the latest apartment building collapse in Gwangju on Jan. 11.

“The collapse of the apartment in Gwangju will increase pressure on revising the construction safety law, which is expected to create a business environment favorable to HanmiGlobal,” said Lee Seung-cheol, an analyst at Kakaopay Securities. “Also, aside from legislative issues, the company is expected to enter the apartment market, focusing on reconstruction projects.”

In the apartment reconstruction market, unions that represent the existing residents play the role of developer, rather than construction companies. HanmiGlobal's entry into the market is expected to accelerate as more unions are forecast to work with the company to supervise construction companies.

“Unions across the nation are expected to show their preference for the company, which is best known for its control capability of safety. An IPARK apartment building in Samseong-dong in southern Seoul had no safety problems even after a helicopter crashed into the building and the apartment complex was jointly constructed by the company and Hyundai Development Company,” the analyst added.

A HanmiGlobal official also said the urban development market is becoming the company's new revenue source. “We are currently engaged in the reconstruction project management business. The company is trying to expand its presence in managing urban development projects,” the official said.