[Exclusive] 'Geumho Byeoksan Apartment' Remodeling, Union and Contractor Sign Main Contract for 708.9 Billion KRW

Contract Signed on the 14th, Preparing for Traffic Impact Assessment and Architectural Review
Relocation Scheduled for Second Half of 2024, Followed by Construction and Sale

Geumho Byeoksan Apartment, Seongdong-gu, Seoul.

[Asia Economy Reporter Cha Wanyong] Hyundai Engineering & Construction and Samsung C&T have signed the main contract for the ‘Geumho Byeoksan Apartment’ in Seongdong-gu, Seoul, marking the first time a consortium has been formed for a remodeling project. As a result, a landmark complex with 1,963 households, jointly developed by the top two construction companies in Korea, will be created in Geumho-dong, Seongdong-gu, Seoul.

According to the urban maintenance industry on the 17th, the Geumho Byeoksan Apartment union, which is promoting the remodeling project, signed the main contract with the construction consortium (Hyundai Engineering & Construction - Samsung C&T) on the 14th at 7 p.m., with a construction cost of 708.9 billion KRW, and decided to proceed with full-scale development. Currently, traffic impact assessments and architectural reviews are being prepared. This comes eight months after the selection of the construction company in August last year and the passing of the safety inspection in March this year.

With this main contract, Geumho Byeoksan Apartment plans to collect consent forms for project plan approval for rights changes in the first half of next year, proceed with relocation in the first half of 2024, and start construction and sales in the second half of the same year. Recently, the Ministry of Land, Infrastructure and Transport issued an ordinance easing the spacing standards between buildings, so if the building standards are relaxed, the permit process may speed up, potentially advancing the relocation schedule earlier than expected.

The urban maintenance industry is showing great interest in the signing of this main contract for Geumho Byeoksan Apartment. This contract was achieved amid difficulties faced by most projects due to interest rate hikes, real estate market downturns, and insolvency in real estate project financing (PF).

In particular, the project management capability of Hyundai Engineering & Construction, the lead company, is highly evaluated. Following Bangbae 5 District and Daejo 1 District, the company has demonstrated visible achievements by successfully concluding the main contract for the Geumho Byeoksan Apartment remodeling project.

Geumho Byeoksan Apartment is a complex located at 633 Geumho-dong 1-ga, Seongdong-gu, consisting of 20 buildings up to 20 stories high with a total of 1,707 households, completed in 2001. With horizontal and separate building extensions remodeling, it will be transformed into 21 buildings from basement level 5 to ground level 21, with 1,963 households. The general sale supply will be 256 households.

Perspective rendering of Kumho Byeoksan Apartment remodeling.

The Hyundai Engineering & Construction - Samsung C&T consortium plans to improve the residential environment and make it a representative eco-friendly residential complex in Seongdong-gu by addressing the previously insufficient parking facilities and community amenities through the remodeling project.

To this end, they will apply wider floor plans, panoramic windows, high-performance insulation materials, and create two sky communities where residents can enjoy views of the Han River and Namsan, along with facilities such as a sky lounge, golf practice range, and fitness center.

Jung Eunseong, head of the Geumho Byeoksan Remodeling Union, said, "With the signing of the main contract with the construction company, we will accelerate the progress of permit-related projects such as Seoul City’s traffic impact assessment review, architectural review, and project approval going forward," adding, "We will definitely create a landmark apartment in Seongdong-gu together with the construction company."