Competition for Hannam 2 District Redevelopment Contract, Daewoo E&C vs. Lotte E&C Showdown

Daewoo E&C 'Summit' vs Lotte E&C 'Le El'
Association to finalize contractor selection at November general meeting

Perspective view of Hannam 2 District Redevelopment Promotion Zone, Yongsan-gu, Seoul
Photo by Seoul City

[Asia Economy Reporter Noh Kyung-jo] The competition for the redevelopment project of Hannam 2 District in Bogwang-dong, Yongsan-gu, Seoul, has narrowed down to a two-way race between Daewoo Engineering & Construction and Lotte Engineering & Construction.

According to the maintenance industry on the 24th, two companies, Daewoo Engineering & Construction and Lotte Engineering & Construction, submitted bids for the selection of the construction company for the Hannam 2 District redevelopment project, which closed at 4 p.m. the previous day. Samsung C&T, Hyundai Engineering & Construction, GS Engineering & Construction, and POSCO Engineering & Construction, who attended the site briefing session held last month, withdrew from the bidding.

Hannam 2 District is a project to build multi-family housing and neighborhood living facilities on a site of 115,005㎡ in the Bogwang-dong area, consisting of 30 apartment buildings ranging from 6 basement floors to 14 above-ground floors, with a total of 1,537 households (including 238 rental units).

The site size is about one-third of the nearby Hannam 3 District (386,400㎡), but it is adjacent to Itaewon Station on Subway Line 6 and has a high general sale ratio (45%), making it favorable in terms of business feasibility.

Daewoo Engineering & Construction and Lotte Engineering & Construction plan to compete by promoting their high-end brands, 'Summit' and 'Le L,' respectively. On the 19th, Lotte Engineering & Construction submitted a bid deposit of 80 billion KRW (40 billion KRW in cash and 40 billion KRW in performance guarantee insurance) to the association. Daewoo Engineering & Construction also paid the deposit on the bid closing day.

The construction cost is 7.7 million KRW per 3.3㎡, with a total construction cost reaching approximately 790 billion KRW. The association plans to hold a general meeting in November to make the final selection of the construction company. Completion and move-in are expected between late 2027 and early 2028.