HDC Hyundai Development Company to Showcase Developer Strategy with Post-Construction Operation in Front Zone 1

Direct Operation of Commercial Facilities After Completion
Maximizing Asset Value by Transforming into Local Landmarks
"Setting a New Standard for the Developer Model"

HDC Hyundai Development Company, which has entered the competition to win the redevelopment project for the Yongsan Maintenance Depot Front Zone 1, has proposed a "developer model" approach that encompasses development, construction, and operation.

A bird's-eye view of the Yongsan Maintenance Depot Front Zone 1 redevelopment proposed by HDC Hyundai Development Company. Provided by HDC Hyundai Development Company

On May 27, HDC Hyundai Development Company announced that it would plan products and establish design strategies with the goal of maximizing development profits, and would directly operate key spaces such as hotels and commercial facilities even after completion. Unlike traditional builders, who focus on securing construction profit margins and rely on the client’s design, HDC Hyundai Development Company emphasized a developer strategy that covers both development and operation to increase asset value.

Since the 1970s, when it directly purchased land for apartments, department stores, and schools to build the Apgujeong Hyundai Apartment Complex, HDC Hyundai Development Company has expanded its developer business model through projects such as Haeundae I-Park in Busan, Suwon I-Park City, and Seoul One I-Park.

Unlike conventional construction companies that do not involve themselves in operations after completion, HDC Hyundai Development Company aims to continuously enhance the value of spaces by strengthening real estate asset premiums through a strategy of turning them into local landmarks even after completion.

Yongsan Station Front Park Underground Space Development Project Rendering. Provided by HDC Hyundai Development Company

For Front Zone 1, the company plans to create "HDC Yongsan Town" by linking it with the Yongsan Station Front Park Underground Space Development Project. The business is designed to provide residents with hotel-style amenities and customized town management services through direct connections with HDC Group affiliates such as Hotel HDC and HDC I-Park Mall.

The Yongsan Station Front Park Underground Space Development Project is a large-scale project that connects Subway Lines 1 and 4, the Shinbundang Line, and the GTX-B metropolitan express railway, and involves complex development beneath the park. HDC Hyundai Development Company, as the project operator, plans to manage it directly for 30 years. The strategy to increase local value by leveraging the daily floating population of 240,000 at HDC I-Park Mall is also linked to HDC Yongsan Town.

A representative from HDC Hyundai Development Company stated, "The core of redevelopment projects lies beyond simply developing complexes; it is about enhancing quality of life and designing the city’s future," and added, "As an urban developer, we will lead a new model for redevelopment projects by presenting a paradigm that takes responsibility from development to operation."

HDC Hyundai Development Company is also promoting asset development in the Samseong-dong area, the Jamsil MICE private investment project, and the Bokjeong Station area development project. The company plans to secure additional project sites in areas such as the Mia and Mia Samgeori Station redevelopment projects, as well as the Seongsu Strategic Redevelopment Zone. It aims to establish a landmark line along Seoul’s urban axis, connecting Seongsu, Jamsil, Yongsan, and Yeouido, with the Han River at its center.