[비즈한국] It has been confirmed that mid-sized construction company Booyoung recently filed trademark applications for a number of names presumed to be for a new housing brand. Since launching the housing brand "Sarang-euro" (meaning "with love") in 2006, Booyoung expanded its business through public rental housing, but has been unable to escape a slump, recording operating losses for the past two years. The recent succession of new housing brand launches by mid-sized construction companies is analyzed as an effort to meet the demand for high-end housing.
According to KIPRIS, the Korea Intellectual Property Rights Information Service, Booyoung filed trademark applications on the 20th of last month for the names "Amor Heim," "Amor Highend," "Amore Heim," and "Amore Highend." The goods designated for use by the company include 20 items under Class 36, such as real estate, finance, and insurance, and 23 items under Class 37, including residential construction, civil engineering, and general construction, most of which are in the construction and real estate sectors.
Booyoung is the holding company of Booyoung Group. It has Booyoung Housing (formerly Booyoung Housing and overseas business division), which accounts for about 80% of the group's revenue, as a wholly-owned subsidiary. Booyoung Group Chairman Lee Joong-keun, the founder, established the company in 1983 and grew the business through rental housing. Currently, Booyoung Group's total assets stand at 21 trillion won, ranking 26th among Korean conglomerates. While consolidated revenue was 2.4877 trillion won and operating profit was 362.8 billion won in 2020, the company recorded 536.5 billion won in revenue and an operating loss of 229.1 billion won last year, marking two consecutive years of operating losses.
This trademark filing is interpreted as being intended for a new housing brand. The trademark names Booyoung filed combine "Amor" or "Amore," the Latin words for "love," with "Heim," the German word for "home," and "Highend," representing luxury. Booyoung uses "Sarang-euro," launched in 2006, and "AESIANG," released later, as its housing brands; it is interpreted that the new brand intends to combine "home" and "high-end" with "love," which was borrowed from the existing brand.
A Booyoung official said, "Specific usage plans for these trademark applications have not been determined. We are currently only at the filing stage."
Recently, mid-sized construction companies have been scrambling to unveil new housing brands. Previously, Kumho E&C002990 launched a new housing brand, "ARTERA," in May, replacing its existing apartment brands "Eoullim" and "Richensia." In the same month, Bando Construction also introduced a premium housing brand, "KAIVE UBORA," an upgraded version of its housing brand "Ubora," to the market. A month earlier in April, HL D&I Halla014790, which built "Vivaldi" apartments, unveiled a new housing brand called "EFETE."
The new housing brands from mid-sized construction companies are receiving market evaluations. Previously, Kumho E&C's ARTERA and Bando Construction's KAIVE UBORA were sold out in their first-priority subscription rounds in July for their first applied complexes in Cheongju, North Chungcheong Province (Cheongju Technopolis ARTERA) and Goyang, Gyeonggi Province (Goyang Janghang KAIVE UBORA), with competition ratios of 47:1 and 8:1, respectively. HL D&I Halla's EFETE received a report card showing a shortfall in some units during the subscription for its first applied complex, Icheon Bubal Station EFETE in Gyeonggi Province, last August.
The series of brand launches by mid-sized construction companies appears to be based on the demand for luxury in the housing market. A construction industry official analyzed, "As the average construction cost and sale price have risen compared to the past, the expectations of homebuyers regarding design and finishing materials have also increased significantly. Construction companies producing housing as consumer goods are changing their brands to fit market trends," adding, "Like large construction companies, mid-sized construction firms can improve old or negative brand images through brand remodeling or segmentation."
Six out of the top 10 construction companies in terms of construction capability have launched premium housing brands. Starting with DL E&C introducing "ACRO," an upgraded version of its housing brand "e-Pyeonhansesang," in 1999, Daewoo E&C047040 launched "PRUGIO SUMMIT" (upgraded from "Prugio") in 2014, Hyundai E&C launched "THE H" (upgraded from "Hillstate") in 2015, and Lotte E&C launched "LE-EL" (upgraded from "Lotte Castle") in 2019. Samsung C&T (Raemian), GS E&C (Xi), and HDC Hyundai Development Company (I-Park) use a single housing brand.