South Korea's Dawon Corporation is set to expand its presence in Southeast Asia after surpassing major domestic competitors, including Samsung C&T Corp., in this year's evaluations by construction and specialty contractor associations. Dawon secured the top position in the 2024 construction capability assessment for landscaping planting and structures, which evaluates construction performance, management status, and technological competitiveness. This achievement was recognized by the Construction Association of Korea and the Korea Specialty Contractors Association.
Samsung C&T, South Korea's largest construction firm, and HDC Labs Co., a subsidiary of the major construction conglomerate HDC Holdings Co., were ranked second and third, respectively, in the evaluation of 1,420 general builders and 7,386 landscaping construction companies. In 2023, Dawon secured 191.2 billion won ($140 million) in local planting project orders, reflecting a nearly 30% increase from the previous year, despite a downturn in the domestic construction sector and a sluggish property market.
The company is poised to expand its business in Southeast Asia based on its technology and landscaping capabilities. “Southeast Asian countries such as the Philippines are emerging markets with enormous growth potential, and it is difficult to predict how much they can explode, as many people in the region are even unfamiliar with landscaping”, said Dawon CEO Kim Dae Joong.
Dawon demonstrated its expertise with a project for The Sharp Clark Hills in Mabalacat, Pampanga, a residential complex constructed by South Korean builder POSCO E&C Co. The Sharp Clark Hills has become a notable landmark in Mabalacat due to its exceptional landscaping, which regional government officials proudly showcased to distinguished guests, according to a Dawon executive in Seoul.
Dawon launched its landscaping business as a new growth driver in 2017, responding to a slowdown caused by reduced government infrastructure spending. Kim, the son of founder and Chairman Kim Yongkak, joined the company in 2016 to lead the business. In his initial six months, he focused on analyzing the industry and various sites, and then aimed to secure orders from existing clients by leveraging the company's 25 years of experience in land reclamation.
Such efforts paid off with its sales soaring to a record 207.4 billion won last year, more than seven times the 29.3 billion won in 2016. The company enjoyed an all-time high operating profit of 6.5 billion won in 2023, compared with the 300 million won loss seven years ago. Dawon has expanded its landscaping business into the design, structure production and maintenance of other types of construction projects.
The company incorporated popular intellectual properties from children's content, such as Baby Shark, a global sensation created by South Korea's The Pinkfong Company Inc., and Robocar Poli, a local 3D animated children's TV series developed by Roi Visual Co., into its playground designs for residential complexes. Dawon has landscaped over 300 sites across South Korea, including residential complexes in the upscale, trendy Gangnam district of Seoul.