NEW DELHI -- Going beyond its home turf, Korean builder Daewoo Engineering & Construction is looking for further expansion in overseas markets and India’s residential property market presents a growth opportunity to achieve its goal.

“Daewoo E&C expects our entry into the Indian real estate market to be an excellent opportunity to open up greater possibilities for both countries,” Han Seung, the chief global business officer at Daewoo E&C said during the India-Korea Business Partnership Forum 2024 held at Yashobhoomi, New Delhi, India, Friday.

India is one of the emerging markets the Korean builder has prioritized in its overseas real estate development expansion strategy, along with Nigeria, Southeast Asian countries centering on Vietnam, and North America.

It aims to raise the portion of foreign sales from the current 25 percent to 75 percent of total revenue, seeking a new source of revenue in the face of the saturated local market.

“We have established a strategy to make a soft landing in the Indian market through joint development with promising Indian developers who have the ability to secure quality projects,” he said during a session on entry strategies for Korean firms in India’s housing and infrastructure market.

As a form of collaboration, Daewoo E&C plans to focus on learning local development business know-how and combining its experiences to create synergy by taking the role of a joint general partner, not just a financial investor.

“The main target areas are high-end housing development and smart city development, which we have strengths in, and we will also explore industrial complex development opportunities in major regions in consideration of the continuous increase in local expansion of Korean companies.”

Major target cities where the construction firm will seek business opportunities include the Delhi metropolitan area, Mumbai, Pune, Bengaluru and Chennai, areas with affluent inflows of foreign investments.

“Daewoo E&C envisions improving the residential environment in India and the quality of life of the locals by presenting a high-quality smart city development model with its development experience accumulated overseas and attracting investment from other Korean investors who wish to enter the market,” Han said.

Since making a foray into the Indian market in 1992, the firm has carried out a total of eight projects worth $3 billion, including a six-lane bridge with a total length of 22.76 kilometers across the Ganges River in Bihar, India, and a Bihar Bridge, a connection road construction project.

Joining the construction and infrastructure session from India’s side was Prashant Yadav, head of sales and manufacturing at Model Economic Township Limited.

“Indian Government has made substantial investments to modernize the country’s aging infrastructure and make it a self-sufficient economy with a larger share of global exports,” he said.

India's infrastructure sector is set for significant expansion, with planned investments of $1.4 trillion by 2025.

“India's aspirations to attain developed nation status by 2047 heavily rely on bolstering its infrastructure, a pivotal driver for creating livable, climate-resilient, and inclusive cities that fuel economic growth.”

Korean firms can opt out of various market entry strategies to enter the Indian infrastructure sector by leveraging their expertise and innovation while aligning with India's developmental priorities.

“One of the options is forming strategic alliances with local companies experienced in infrastructure projects to navigate regulatory requirements and build local networks,” he said.

They could engage in the national infrastructure pipeline, exploring opportunities in sectors such as energy, transportation and urban development under India’s state-run programs.

The Comprehensive Economic Partnership Agreement between India and Korea could benefit Korean firms eyeing the market as it could help to reduce trade barriers and enhance market access.