HanmiGlobal, Korea’s leading construction management firm, has entered the Japanese market, setting up its local branch Otak Japan this month.

Otak is the corporate name of the U.S.-based engineering firm that HanmiGlobal took over in 2011 to strengthen its urban design and engineering capability. With a foothold in Japan, the company runs business operations in 11 countries, including the U.S., China and Saudi Arabia. 

“The company has sought entry into the conservative Japanese construction market with a long-term goal of tapping Asian markets with high growth potential,” HanmiGlobal chairman Kim Jong-hoon said in a recent interview with The Korea Herald.

The recent launch of the Chinese-led Asian Infrastructure Investment Bank is expected to accelerate construction projects in Asia, whose market value is  estimated at about $8 trillion as of 2015.

In the short term, however, Otak Japan plans to focus on discovering business opportunities in Japan’s construction management market, which is in its infancy.

“The target customers in the initial stage will be multinational companies in Japan as the government and companies traditionally haven’t outsourced construction management to a third party,” the chairman said.

He believes that it is a matter of time for Japanese builders to outsource the construction management role, which is a globally adopted business practice for better safety controls, as they are turning their eyes to the global market for sustainable growth.

To spot growing business opportunities in Japan, Kim appointed Norimitsu Yoshihama, former head of Taisei Corp.’s Tokyo branch, as CEO of Otak Japan.

“Based on his rich experience and expertise attained at one of Japan’s leading builders, I expect Yoshihama to develop a variety of construction-related businesses, not limited to the construction and project management market,” Kim said.

He added that HanmiGlobal is also open to merger and acquisition deals in the Japanese construction market via Otak Japan if required in the future.

In contrast to the slumping Chinese construction market, the outlook for Japan’s construction market is positive thanks to the 2020 Tokyo Summer Olympics and continued demand for natural disaster-receptive construction projects, the building veteran said.

“HanmiGlobal will invest in developing pan-Asian projects with operations in China and Japan in the long term,” the chairman said.

Established in 1996 as the first construction management firm in Korea, HanmiGlobal has taken a pioneering role in the industry, advancing into a global player. According to Engineering News Record, a U.S.-based construction magazine, it ranked 17th among non-U.S. firms in total global construction and project management fees this year.

The company has expanded its size and capabilities by acquiring globally competitive engineering and architecture firms at home and abroad, including iArc, Ecosian and Otak, over the past few years with an aim to become one of the world’s top 10 construction management companies by 2020.

By Seo Jee-yeon(jyseo@heraldcorp.com)