[Exclusive] Largest Remodeling Project 'Ugeuksin' to Re-bid Construction Company

Consortium Restructured After SK Eco Withdrawal
Construction Company Selection Expected by Late March
POSCO "Strong Commitment to Successful Completion"

Seoul Dongjak-gu’s ‘Ugeuksin (Useong 2nd & 3rd, Geukdong, Sindonga 4th)’, the largest remodeling complex in Korea with 5,000 households, is facing a situation where the construction company bidding must be restarted. The selection of the construction company has been delayed by more than three months as SK Ecoplant withdrew from the consortium of construction companies initially selected as the preferred negotiation partner. However, the union explained that rapid project progress is possible due to the strong willingness of the lead company to participate.

A bird's-eye view of the remodeling project for 'Ugeuksin (Useong 2·3rd, Geukdong, Sindonga 4th)' in Dongjak-gu, Seoul. Provided by the association

According to industry sources on the 20th, the Ugeuksin remodeling union informed its members of the plan to re-bid for the construction company on the same day. In June, the union designated a consortium of four construction companies?POSCO E&C, Hyundai Engineering & Construction, Hyundai Engineering, and SK Ecoplant?as the preferred negotiation partner (PNP) for the construction company. The plan was to close the bidding this month and hold a general meeting early next year to finalize the selection of the construction company. However, SK Ecoplant recently announced its intention to withdraw from the consortium, necessitating the reformation of the consortium. The consortium officially delivered a letter regarding the change in its composition to the union the day before. A representative from SK Ecoplant explained, "After internal review, we decided not to participate in the project."

The union plans to cancel the existing consortium’s PNP selection and soon announce a new bidding for the construction company. The bidding is scheduled to close between the end of March and April next year. The union stated, "Although we will gather opinions from the board of directors and delegates, we plan to proceed according to the schedule regardless of how many companies participate," adding, "Although the selection of the construction company has been somewhat delayed, we will prepare in advance for safety inspections and architectural reviews that will follow the selection to ensure the project progresses swiftly."

POSCO E&C, the lead company, has expressed its intention to rejoin the project to the union. A POSCO E&C representative said, "We have a strong will to successfully carry out and complete this project," and added, "We will exchange opinions with other construction companies regarding the consortium formation, but currently, we are willing to proceed even independently." Hyundai Engineering is also reportedly inclined to participate in the project.

Currently consisting of 4,397 households, Ugeuksin is expected to be reborn through remodeling as a complex with up to 23 floors and 5,054 households. With an estimated project cost of about 1.5 trillion won, it is regarded as the largest remodeling project.