Win the Votes of Hannam 3 District Union Members... Promotion Center Opens, Recruitment Battle Begins

GS Construction, Only Original Design and Construction Cost Reduction
Hyundai Construction, Excellent Finishing Materials like Natural Marble
Daelim Industrial, Luxury Complex and Relocation Loan

GS Construction's Hannam 3 District Promotion Center located near Hangang-ro 3-ga, Yongsan-gu, Seoul.

[Asia Economy Reporter Donghyun Choi] On the morning of the 5th, GS Engineering & Construction held employee training in a calm atmosphere at the Hannam 3 District PR Center, which opened for the first time in Hangang-ro 3-ga, Yongsan-gu, Seoul. Access inside was strictly controlled, allowing only union members. To preempt any potential illegal bidding controversies, individual contact with the media was also prohibited.

With a total project cost of 7 trillion won, the bidding promotion for Hannam 3 District, considered the largest redevelopment project in northern Seoul this year, has officially begun. Hyundai Engineering & Construction, GS Engineering & Construction, and Daelim Industrial, which participated in the bidding, officially opened their PR centers on this day and will compete to attract the support of about 3,800 Hannam 3 District union members until the day before the contractor selection on the 20th.

Among the bidding construction companies for Hannam 3 District, GS Engineering & Construction was the only one to propose the original design rather than an alternative design. The original design is the design plan approved by the union for project implementation, while the alternative design is a plan modified and presented by the contractor. Generally, alternative designs incur higher costs. In fact, Hyundai Engineering & Construction and Daelim Industrial proposed alternative designs costing 1.7337 trillion won and 1.88 trillion won respectively, while GS Engineering & Construction adhered to the original design costing 1.66 trillion won. According to Seoul city regulations, the allowable scope for alternative designs in redevelopment projects is limited to minor changes within about 10% of the original design. Violating this may require re-approval from Seoul city’s architectural review, potentially prolonging the project.

Additionally, GS Engineering & Construction plans to shorten the project period through zonal sales. The project site is divided into detailed zones: Zone 1 for 33 months, Zone 2 for 45 months, Zone 3 for 41 months, Zone 4 for 40 months, and Zone 5 for 51 months. They aim to reduce the project period by an average of 13 months and up to 22 months compared to competitors. A GS Engineering & Construction official explained, "We will save construction costs as much as possible to benefit the union and demonstrate that a premium complex is achievable even with the original design."

Hyundai Engineering & Construction and Daelim Industrial also plan to reveal their blueprints through their PR centers to secure union members’ votes. At the joint contractor briefing for Hannam 3 District held the previous day, Hyundai Engineering & Construction emphasized the use of superior finishing materials compared to other complexes. Unusually, their proposal disclosed detailed finishing materials such as natural marble finishes, IGEON windows, and Italian kitchen furniture by Valcucine. They also promised 500 billion won in project promotion funds for rapid project advancement, a partnership for Hyundai Department Store entry considering commercial facility activation, private gates, and Miracle Windows. A Hyundai Engineering & Construction official stated, "We included all possible proposals beyond company guidelines for the union," and emphasized, "We will secure construction costs without fail based on our top credit rating (AA-)."

Daelim Industrial, which promised a luxury complex by proposing the highest construction costs, suggested direct loans of 320 billion won for relocation costs, upscale commercial facilities and REITs sales, and specialized designs. They proposed the shortest construction period among competitors, within 35 months after groundbreaking, and promised no construction cost increases due to inflation until the construction base date (August 2022).