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.
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.”
“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 $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.
XiGEIST has prepared more than 50 standard modules through modular technology research and flat development over the past two years.
Gary Fleisher is the Editor in Chief of Modular Home Source and Offsite Builder magazine. Email at [email protected]
Gary Fleisher, the Modcoach
