[Why&Next] Hyundai Motor GBC 'Within 55 Floors' Withdrawn... Will They Find Common Ground Within the Year?

On the 5th, the city received an official letter withdrawing the design change proposal
Some suggest "Influence of Mayor Oh Se-hoon's meeting remarks"
City and Hyundai Motor to resume negotiations on new design plan within the year
Hyundai Motor "Not considering 105 floors", City "Feasibility must be proven"

Hyundai Motor Group's withdrawal of the '55-floor construction plan' for the Global Business Complex (GBC) in Samseong-dong, Gangnam-gu, Seoul, is analyzed to be influenced by the strong stance taken by Seoul Mayor Oh Se-hoon and the Seoul city government. However, the conflict over the maximum number of floors for the GBC still remains, making it uncertain whether a compromise can be reached within this year.

According to the city and Hyundai Motor on the 9th, Hyundai submitted a letter to the city on the 5th withdrawing the design change plan for the GBC. This means they retracted the design change plan submitted in February to reduce the GBC from the original single 105-floor building to two 55-floor buildings. This decision was made the day after a high-level meeting between Kim Seung-won, head of Seoul City's Balanced Development Headquarters, and Lee Jung-ryeol, head of Hyundai Motor Group's GBC Development Office.

A bird's-eye view of the 'Global Business Complex' (GBC) in Samseong-dong, Seoul, unveiled by Hyundai Motor Group last May. Photo by Hyundai Motor Group

"Hyundai's Withdrawal is a Significant Progress"

The city evaluated Hyundai's withdrawal of the design change plan as 'significant progress.' A city official stated, "Hyundai acknowledged that the 55-floor construction plan is subject to renegotiation, as Seoul City has been saying, and agreed to engage in dialogue." Hyundai had previously revealed a bird's-eye view of the GBC changed to two 55-floor buildings in May without prior notice and had remained silent in response to the city's demand for the negotiation team list, insisting it was not subject to renegotiation. Even during the working-level meeting held on the 14th of last month, both sides failed to find common ground and left without agreement.

The decisive background for Hyundai's sudden change of stance is attributed to Mayor Oh's remarks and the city's tough response. At a press conference marking his second anniversary in office on the 1st, Mayor Oh clearly stated that additional negotiations, including public contributions, would be necessary if the GBC were to be changed from 105 floors to 55 floors. He pointed out, "The new construction plan proposed by Hyundai is completely different from the existing plan. It is not about lowering from 100 floors to 90 floors, but a new plan. If a different plan has been made, it is common sense and a rational judgment to newly discuss the corresponding (public contributions, etc.)." Prior to this, the city also increased pressure by repeatedly demanding Hyundai submit the negotiation team list by a specified deadline.

A Hyundai official explained the reason for withdrawing the design change plan, saying, "We withdrew the proposal to supplement the GBC development plan in a direction that strengthens symbolism and public nature compared to the existing plan," and added, "We plan to submit a new proposal as soon as possible and proceed with negotiations with the city."

[Image source=Yonhap News]

Hyundai: "We Will Not Consider 105 Floors"

Both sides are expected to renegotiate with a new proposal within the year. However, it is uncertain whether the renegotiation will proceed quickly. Regarding the previously contentious issue of the maximum number of floors, both sides still present differing opinions. A Hyundai official said, "The number of floors is still open," but firmly stated, "The 105-floor skyscraper plan is not under consideration." On the other hand, the city stated, "Since incentives such as increased floor area ratio and eased public contributions were provided on the premise of constructing 105 floors during the 2016 preliminary negotiations, if the building is constructed with fewer floors than 105, the number of floors will become a negotiation agenda." The city emphasized, "If the validity is not proven, it will inevitably be 105 floors as per the existing plan."

The GBC is currently undergoing excavation work after completing the retaining wall construction. With a progress rate of around 5%, it has been four years since construction began in May 2020, but it remains in the very early stages of construction.