[Construction in] Kyungmin Kang of HDC Hyundai Development Company: "Success of Front Zone 1 Hinges on 'Connection' to Subway Stations"

HDC Hyundai Development Company Proposes Connecting Two Stations in Front Zone 1
"Growth of Association Members Is Company Growth, We Will Make It a Place People Want to Visit"
Minimum Relocation Payment of 2 Billion KRW Proposed, Additional Contributions Minimized

"Once Yongsan Station is connected to the GTX and Shinbundang Line, it will become a key hub that extends into the surrounding areas. This is why the benefit of being linked to Yongsan Station is an essential criterion that determines the success or failure of the Yongsan Maintenance Depot Front Zone 1 project."

Kyungmin Kang Head of Urban Maintenance Division HDC Hyundai Development Company

On June 12, at the promotional center for Yongsan Maintenance Depot Front Zone 1, Kyungmin Kang, Head of Urban Maintenance Division at HDC Hyundai Development Company, emphasized "connection" as the core strategy for winning the Front Zone 1 project. He stated, "With the paradigm of maintenance projects shifting, 'building well' has become a basic requirement, and it is now crucial to enhance the value of assets after the project is completed." He added, "Just like Roppongi Hills in Tokyo, Front Zone 1 in Yongsan can become the 'finishing touch' of the area." He further stressed, "The key strategy is to connect with Yongsan Station and the Yongsan International Business District."

HDC Hyundai Development Company has proposed connecting two stations?Yongsan Station and Sinyongsan Station?via an underground passage in Front Zone 1. This would allow people to walk without crossing streets or needing an umbrella on rainy days. Commercial facilities are also planned for both the basement and ground floors. Kang emphasized, "Looking at the complexes around Yongsan Station that have completed maintenance projects, whether or not they are connected to the station or surrounding buildings has been a decisive factor in increasing asset value. Near Sinyongsan Station, the arrival of office buildings connected to the station has increased foot traffic and revitalized commercial areas. In contrast, shops in places not connected to the station or nearby buildings have yet to be revitalized." In particular, HDC Hyundai Development Company is also pursuing projects to underground the park in front of its headquarters at Yongsan Station I'Park Mall and to develop the former Railroad Hospital site, which could create synergy with the Front Zone 1 project.

A model inside the promotional center for Yongsan Maintenance Depot Front Zone 1 proposed by HDC Hyundai Development Company. Provided by HDC Hyundai Development Company

The name proposed by HDC Hyundai Development Company for the Front Zone 1 complex is "THE LINE 330." Typically, residential complexes use the "I'Park" brand along with a regional name and subtitles like "Central," but for this project, a subtitle reflecting its symbolic significance was suggested. "THE LINE 330" signifies drawing a single stroke, among other meanings. The "330" refers to the length in meters (330 meters) of the sky bridge to be built at a height of 24 floors above ground (74.5 meters). Kang explained, "While the I'Park brand is usually applied to redevelopment and reconstruction projects, we determined that a new brand was needed to match the significance and mixed-use nature of this core project."

HDC Hyundai Development Company plans to utilize all its capabilities as a developer for this project. This is evident in the proposal, which considers not only connections to the station but also attracting a hotel and plans for operating commercial facilities. Front Zone 1 will include 777 apartment units, 894 officetel units, and commercial and office spaces. To increase the asset value for association members, HDC Hyundai Development Company plans to designate one building for hotel and office use, with the upper floors to house a Park Hyatt hotel.

Some of the 440 or so association members of Front Zone 1 own only part of the land or buildings (commercial or residential), so bold proposals tailored to their circumstances were also made. Kang stated, "We emphasize not only the physical connection of spaces but also functional connections. We want to make this a place people want to visit." He added, "We have gained know-how from operating I'Park Mall for over 20 years. Our willingness to accept unsold non-residential units as payment in kind and operate them is a sign of our confidence."

Kyungmin Kang Head of Urban Maintenance Division HDC Hyundai Development Company

Bold financial terms were also proposed. Kang explained, "For those holding land or small shares, we proposed a minimum relocation payment of 2 billion KRW to ensure they can move with peace of mind, and we set the project financing interest rate at CD+0.1% to minimize additional contributions. The development of the association is the development of the company."

HDC Hyundai Development Company is aggressively pursuing maintenance project orders this year. As of last month, the order amount reached 1.3 trillion KRW, nearing last year's total, and is expected to far exceed the annual target of 2.5 trillion KRW. The company is actively bidding for Seoul maintenance projects through consortiums, including Bangbae Shinsamho, which was selected as the preferred bidder, as well as Mia 9-2 Zone and Sindang 10 Zone. If the company wins the Front Zone 1 project, it is expected to achieve its largest-ever maintenance project order record.

Kang stated, "We will change the paradigm of maintenance projects through physical, functional, and emotional 'connections.' We aim to pursue maintenance projects that tell the story of each area and to become a developer that excels in maintenance and operation."