November 22, 2024

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Daewoo E&C Chairman Jung Won-ju (left) and Nigeria's Minister of Foreign Affairs Yusuf Maitama Tuggar pose for a photo after a meeting held in central Seoul on June 3. (Daewoo E&C)

Daewoo Engineering & Construction Chairman Jung Won-ju is ramping up efforts to expand the Korean builder’s global network for new business opportunities abroad, the company said Tuesday.

According to the company, the chairman has made a total of 19 visits to 15 countries since 2022 when the builder was acquired by Jungheung Group. He also hosted nine meetings with foreign delegates visiting Korea during the same period.

Over the past years, Jung visited Nigeria, Vietnam, India and Singapore, where Daewoo E&C has already established its business network to strengthen existing ties. He also embarked on business trips to countries where the company’s business ties have not been fully settled yet, such as the US, Canada, Turkmenistan, Rwanda and Cambodia.

The goal of Jung’s ongoing business travel is to expand the company's international network, which can then be leveraged to step up as an international construction company, Daewoo E&C said.

“When participating in construction projects led by the governments or public companies in overseas countries, building local networks is crucial as it helps the company keep the variables to a minimum during the long process,” an official from Daewoo E&C said. “Jung’s recent efforts to build networks in overseas countries are necessary for the company’s overseas operation from a long-term perspective.”

While expanding its global network, Daewoo E&C and Jung are also trying to diversify the company’s business portfolio. During a New Year’s gathering in January this year, Jung stressed that the company’s growth will be limited if it continues to remain as a builder, saying the company should expand to property development to survive in the future.

Jung then said Daewoo E&C’s participation in urban development projects will be the key to its success as a property developer and expand its business portfolio that used to focus on infrastructure projects, involving liquefied natural gas facilities, ports, power plants and bridges.

Jung said Daewoo E&C’s experience in the ongoing urban development projects within the Starlake City project in Hanoi, the luxury residential and commercial complex, will help the company to win additional project bids in other countries.

The company hopes to participate in new urban development projects in countries like the US, Nigeria, Singapore and Indonesia. In the US, Daewoo E&C has been looking into new urban development projects in Texas and New Jersey after Jung’s 2022 visit.

Last year, Jung also made a weeklong business trip to Nigeria, where he met with top government officials to tap urban development projects in the county’s capital city Abuja and its most populous city Lagos.

“As interest rates remain high, and the prices of construction materials continue to increase, it becomes increasingly important for Korean construction companies to expand into the international market,” the official from Daewoo E&C said. “To facilitate growth, global expansion has become inevitable for local construction companies, and Daewoo E&C will also do its best to step up as a global developer.”

By Shim Woo-hyun (ws@heraldcorp.com)