Daewoo E&C and POSCO E&C Clash Over Ansan Jugong 6 Complex Reconstruction

Excellent Project Feasibility with 87% Floor Area Ratio
Reconstruction from 590 Households to Over 1,000 Households

Daewoo E&C and POSCO E&C are set to clash over the construction rights for the reconstruction of Ansan Jugong Complex 6 in Gyeonggi Province. Daewoo E&C has offered an unprecedented relocation allowance of 500 million KRW per household, while POSCO E&C has proposed exceptional terms such as deferred construction payments to win over the owners. Given that the complex is currently a low-rise area with a maximum of five floors and has excellent project feasibility, and that many complexes in the area have reached the reconstruction eligibility period, this is seen as an attempt to secure a leading position in the market.

Perspective view of Prugio Foretinum proposed by Daewoo E&C

According to the real estate industry on the 15th, Ansan Jugong Complex 6 will select a reconstruction project contractor through a general meeting of all owners on the 23rd. Currently, the complex consists of 17 buildings with a maximum height of five floors and 590 households, but after reconstruction, it will be reborn as about 1,000 households in seven buildings with a maximum height of 38 floors.

The contenders for the construction rights are Daewoo E&C and POSCO E&C.

Daewoo E&C proposed the new name for the apartment as 'Prugio Foretinum.' They promised a maximum height of 38 floors, a massive 115-meter sky bridge, a grand entrance gate, and a high-end community. Along with this, they offered a groundbreaking relocation allowance of 500 million KRW per household. A Daewoo E&C official said, "The legal relocation allowance based on an LTV of 60% is insufficient compared to the surrounding rental market prices, which could delay the project. By providing at least 500 million KRW, we aim to resolve moving cost issues."

Additionally, amid intense conflicts between contractors and associations due to recent sharp increases in construction costs, Daewoo E&C pledged to fully accept the construction cost verification results from the Korea Real Estate Board. They also presented measures for unsold units, promising to guarantee project stability through asset substitution even if unsold units occur.

The Sharp First One proposed by POSCO E&C

POSCO E&C proposed the new name 'The Sharp First One.' It is the first The Sharp brand apartment in Ansan. They pledged dual sky communities, a park-view sky bridge, three-sided open floor plans, and cross-ventilation structures. They also introduced a bold strategy to maximize owners' development profits, offering up to 720 million KRW per household. Furthermore, they proposed a construction cost deferral system where no construction fees are collected for up to 17 months after groundbreaking. POSCO E&C is also known to take responsibility for project costs and additional relocation allowances and proposed covering 100% of the residents' contributions at move-in.

As construction companies are becoming selective in bidding due to rising construction costs, the fierce competition between the two companies over Ansan Jugong Complex 6 is attributed to its excellent project feasibility. The current five-story apartments make relocation and demolition easy, and with a floor area ratio of only 87%, a significant number of general sale units are expected from the reconstruction.

In particular, many old complexes in Ansan have reached the reconstruction period. In areas such as Gojan-dong, Jungang-dong, Seongpo-dong, Hosu-dong, and Choji-dong, there are numerous apartments built 20 to 30 years ago. Winning the construction rights for Jugong Complex 6 is expected to secure a favorable position in the future reconstruction market in this region.

A Daewoo E&C official said, "Daewoo E&C has grown alongside Ansan for over 30 years through projects like the development of Gojan New Town and the construction of the Sihwa Lake tidal power plant. Especially, having supplied over 20,000 housing units in Ansan so far, we will create Jugong Complex 6 as a premium complex with honest construction costs and sincere construction."

A POSCO E&C official said, "We will mobilize the full capabilities of the company to apply the best design and planning worthy of the 'The Sharp' name and create a new landmark in Ansan."