As Hyundai Motor Group is promoting to build a super large-scale building on a site previously owned by KEPCO in Samseong-dong, Seoul, the group’s IT service affiliate Hyundai AutoEver is forecast to record as much as hundreds of billions of won in sales in construction IT field. With Hyundai Motor Group’s office building construction, a large-scale exhibition area and sales facilities including hotels and shopping malls are expected to open nearby. Accordingly, the company will also secure a foundation for business expansion to distribution IT.
According to IT service industry on the 3rd, as Hyundai Motor Group commenced an office building construction in Samseong-dong, a construction IT project valued at around tens of billions of won to as much as hundreds of billions of won is forecast to be kicked off. At the time of Yongsan Station sphere development project in the past, LG CNS participated in a payment guarantee to a scale of KRW 50 billion in order to win a project for a KRW 500 billion intelligent building system (IBS) installation. Lotte Data Communication Company is found to have recorded considerable sales as a result of the second Lotte World construction.
Last year, Hyundai Motor Group suggested the construction of a 115-level office building on a site in Samseong-dong it had purchased at KRW 10.5 trillion to Seoul Metropolitan City. In the surrounding area, a 62-level exhibition area, a hotel, a theme park and sales facilities will open. Seoul Metropolitan City plans to complete the necessary procedures within the next six to seven months by shortening the generally required prior negotiation period. According to the related industries, the construction commencement will be earlier than January 2017 suggested by Hyundai Motor Group.
During the second half of 2016, an architectural design project for the foundation of a building information modeling (BIM) in relation to the Hyundai Motor Group’s office building construction will be kicked off. From 2017, implementation of various construction IT projects including IBS installation project will be started. An internal information system implementation project, such as for construction management and material supply by the construction project team, will also be initiated.
Accordingly, Hyundai AutoEver has embarked on strengthening its construction IT competencies. Following an M&A with Hyundai CNI, a construction IT affiliate of Hyundai E&C, in November last year, Hyundai AutoEver will promote the project implementation by installing Construction Information System Division. At present, this organization is comprised with around 70 – 80 personnel. Prior to the merger, Hyundai CNI recorded annual sales of approximately KRW 65 billion.
Once shopping malls start to open in the future, a distribution information system implementation project will also be commenced. Hyundai AutoEver, although not implementing the distribution IT project in earnest, can expand its business area on the basis of the existing logistical IT business. “Hyundai Motor Group’s office building construction in Samseong-dong will be an opportunity of second growth for Hyundai AutoEver,” forecast an IT service industry insider. “Construction IT will be a new growth item for Hyundai AutoEver.”