Hyundai Motor GBC New Bird's-Eye View Released
Seoul City, the Permit Authority, Says "Renegotiation Needed"
Hyundai Motor Group announced on the 20th that it will change the name of the Global Business Center (GBC) being built in Samseong-dong, Gangnam-gu, Seoul, to ‘Global Business Complex.’
The new name emphasizes the complex nature of the facility for citizens. Although Seoul city expressed a negative stance on the plan to reduce the originally planned 105-story building to 55 stories, Hyundai Motor Group has finalized its intention to proceed as planned. While the main building’s design will be completely changed, it is expected that obtaining local government permits will not be difficult since the changes mainly concern architectural plans.
Aerial perspective of Hyundai Motor Group's GBC concept design released by UK-based Foster + Partners. The existing 105-story main building has been reduced to 55 stories. [Photo by Hyundai Motor Group]
On the other hand, Seoul city previously stated that since lowering the building’s floors by nearly half is a significant change, prior negotiations must be conducted again. Since the landmark building was planned with reduced public contributions, if the height is lowered, the public contributions that the building owner must bear should be recalculated through further negotiations. Seoul city holds the key to the GBC project’s permits.
Hyundai Motor Group unveiled the revised GBC aerial view and detailed project plans on the same day. The complex will consist of six buildings: two towers of 55 floors each with a height of 242 meters, and four low-rise buildings to be used for MICE (Meetings, Incentives, Conferences, and Exhibitions), cultural, and convenience facilities. Initially, the GBC project was planned as a 105-story building, but it was later changed due to cost burdens such as labor expenses.
A Hyundai Motor Group official said, "GBC will be recognized as a representative landmark of South Korea with a future-oriented design, enhanced sustainability, innovation, and public value," adding, "We look forward to Seoul city’s prompt approval so that the GBC project can be successfully carried out."
The area around Samseong-dong, Gangnam-gu, Seoul, photographed in 2022. The right side of the photo shows the site that Hyundai Motor Group purchased from the former Korea Electric Power Corporation. [Photo by Yonhap News]
After submitting this change proposal to Seoul city, the city conveyed to Hyundai Motor Group that it is a significant change requiring renegotiation. Nevertheless, Hyundai Motor Group’s public announcement made it seem as if the ‘55-story change plan’ had been finalized, indicating some tension.
Seemingly aware of this, Hyundai Motor Group specified the increase in public contribution amounts when disclosing the change plan this time. The company stated, "The public contribution amount borne by Hyundai Motor Group is estimated to exceed 2.1 trillion won, reflecting inflation from the previous level of about 1.7 trillion won."
They also emphasized that, according to the agreement with Seoul city, they are fulfilling various public contribution projects such as the Yeongdong-daero complex transfer center and the remodeling of Jamsil Sports Complex in accordance with the city’s demands. The Urban Administration Association also estimated that this project will generate a production inducement effect of 265 trillion won, employment inducement of 1.22 million people, and tax revenue increase of 1.5 trillion won.
When Hyundai Motor Group originally planned to build the GBC main building with 105 floors, a bird's-eye view [Photo by Hyundai Motor Group]
Hyundai Motor Group's newly proposed perspective rendering lowering the GBC main building to 55 floors [Photo provided by: Hyundai Motor Group]
Since this design change mainly involves architectural plans such as building height and design, it is expected that the permit process will also accelerate. The company’s position is that there is no need for further negotiations since urban planning matters, such as land use zone changes, have already been decided. Hyundai Motor Group stated, "GBC, which will establish itself as a landmark representing South Korea and Seoul, is a project with large-scale socio-economic value in terms of job creation and economic revitalization, so we expect active support from Seoul city and related authorities."
If prior negotiations are conducted again, it is expected to be a lengthy process. Prior negotiations are a system where private developers consult in advance when developing large-scale land, making it easier to increase floor area ratio or change land use zones. The local government receives part of the development gains as public contributions to expand necessary facilities. However, since land prices and construction costs have risen significantly compared to around 2015 when prior negotiations were conducted for this project, the public contribution amount is also expected to increase substantially, according to industry insiders.
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