Daewoo E&C looks to expand global presence

Home > Business > Guest Reports

Daewoo E&C looks to expand global presence

Published: 26 Jun. 2024, 09:33

Daewoo E&C Chairman Jung Won-ju and Nigerian Minister of Foreign Affairs Yusuf M. Tuggar. [DAEWOO E&C]

Daewoo Engineering & Construction (E&C) Chairman Jung Won-ju has been jetting around the world to meet key leaders and business figures as the company expands its international business.

Since Daewoo E&C was incorporated into Jungheung Group in March 2022, Jung has visited 15 countries on 19 occasions.

During these visits, he has met with local leaders, major clients and business representatives. Additionally, he has met with leaders from seven countries on nine occasions as part of their visits to Korea.

His business trips are not limited to traditional markets in Africa and Asia, where Daewoo E&C already has a presence. They extend to North America, Central Asia and Southeast Asia, including countries such as the United States, Canada, Turkmenistan, Rwanda and Cambodia, where the company is seeking new market entries.

Earlier this year, he emphasized that relying solely on construction would limit its growth, stating that the company must achieve substantial results as a top developer that handles both development and construction, even in foreign markets.

He highlighted the need to expand into new city development projects overseas.
In addition to its traditional strengths in infrastructure construction, such as power plants, liquefied natural gas (LNG), ports and civil engineering, Daewoo E&C aims to diversify its business by venturing into urban development projects.

To realize this vision, Jung announced plans to pursue development projects in three key regions: North America, centered around New Jersey, Africa, centered around Nigeria and Southeast Asia, centered around Singapore and Indonesia.

Last year, during his visit to Nigeria, he visited new city development sites in Abuja and Lagos, and held meetings with officials and global development companies to advance real estate development projects.

Daewoo E&C's strategy to strengthen overseas urban development projects aligns with the Ministry of Land, Infrastructure and Transport’s policy for expanding the overseas construction market.

The construction industry views Jung’s activities and strategies as part of an effort to establish and realize a mid- to long-term growth strategy, rather than seeking short-term results. This is because, given the nature of overseas markets, it is challenging to achieve immediate results through short-term activities alone.

Daewoo E&C's success with the Hanoi Starlake New City project in Vietnam exemplifies the potential of such initiatives. Initial project planning and communication with the Vietnamese government began in the early 1990s during the Daewoo Group era.

Despite setbacks due to the 1997 IMF financial crisis and the 2008 global financial crisis, groundbreaking commenced in 2012. Today, the project stands as a demonstration of Korean enterprise, showcasing successful execution from planning and land acquisition to financing, construction and land sales.

In Nigeria, a major market in Africa, Daewoo E&C started over 40 years ago with small-scale well-drilling projects. Since then, the company has established a formidable presence, leveling up to become the first Korean construction company to undertake the original construction on LNG plants.

In Iraq, the company initially faced losses in the construction of seawalls in 2013 but transformed into a major player through subsequent projects such as port access roads, terminal construction and immersed tunnel construction.

A Daewoo E&C representative said, “To become a centennial company, it is essential to expand into overseas markets and transform into a global construction company. With chairman Jung Won-ju and management taking the lead in sales and actively engaging in international efforts, we will harness the determination of all employees to become a leading global construction developer.”

BY JEONG SEONWU [jeong.seonwu@joongang.co.kr]

What is “Promoted Content”?

“Promoted Content” articles are written by our staff reporters. They are promoted to some extent by an external company.

Promoted Content is not the same as “Guest Reports,” which are paid advertorials.
Our reporters and editors retain complete editorial independence in the conception and production of Promoted Content.