GS E&C to offer modular wood-frame homes to consumers

Industry

GS E&C to offer modular wood-frame homes to consumers

Published: 13 Apr. 2023, 19:23 Updated: 13 Apr. 2023, 22:28

XiGEIST’s modular wood frame show home located at its manufacturing factory in Dangjin, South Chungcheong [GS E&C]

GS Engineering and Construction (GS E&C), the construction arm of the GS Group, is bringing its modular wood-frame homes to Korean consumers.

A prefabricated modular home is a type of house where sections are manufactured in a factory, and then transported to the construction site for assembly.

GS E&C announced Thursday that XiGEIST, its subsidiary specializing in wood prefab houses, will offer modular wood-frame homes to general consumers.

Wood prefab houses were initially offered to corporate clients only.

The company has also launched a website where prospective buyers can preview the expected final look of their house.

Unlike traditional homes, which can vary in quality based on the skills of on-site workers, modular homes can ensure consistent quality and minimize on-site construction.

Apart from the design and permit process, it can be supplied within as little as two months, according to GS E&C.

“Baby boomers who are approaching retirement age have a strong desire for a healthy lifestyle, as well as for owning a suburban house or a second home,” Nam Kyong-ho, CEO of XiGEIST, said during a press briefing in Seoul on Thursday.

“We are looking to build customer confidence through our unique designs, competitive pricing and diligent maintenance service to meet the needs and wants of the customers,” Nam said.

Modular homes can also contribute to achieving carbon neutrality in the construction industry as studies show their construction process produces less carbon emission than traditional wet construction methods.

Korea has also followed this trend, and in 2020, GS E&C acquired two European prefabrication companies and established the subsidiary company XiGEIST later that year.

“The modular wood frame home market in Korea only had small builders catering to it,” a spokesperson from GS E&C told the Korea JoongAng Daily. “The entry of a large player like XiGEIST is meaningful as it includes the design, technology and interior concepts of Xi ― the brand name for GS E&C’s apartments.”

To test the market and gather feedback from potential customers, XiGEIST has built two show homes at its factory site in Dangjin, South Chungcheong, each sized 115 square meters (1,237 square feet) and 178 square meters.

"Our Dangjin factory has a production capacity of 300 houses per year,” Nam noted.

He continued, “If there is an increase in demand, we plan to expand our production capacity to 1,200 houses per year within four to five years, ultimately reaching sales of 200 billion won [$153.08 million].”

The construction cost is set at 6 to 7 million won per 3.3 square meters. The company explained that this is 90 percent of the construction cost of general single-family home companies.

During Thursday’s press conference, XiGEIST unveiled the XG Configurator, a program that allows customers to combine modules themselves and view the finished home. After a testing period, the program will be publicly available on the XiGEIST website.

XiGEIST has prepared more than 50 standard modules through modular technology research and flat development over the past two years.

“The prefabricated single-family home business was inspired by the idea of making house building an enjoyable experience, much like choosing a menu at a restaurant,” said Ok Ran, director of XiGEIST Architectural Planning & Design. “Our goal is to provide this experience by constructing customized homes with uniform quality.”

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]