POSCO E&C to Make Yongsan Maintenance Depot the Center of the NEW YBD Era

Responsible Lease for Office Facilities and Station Connection... Declaring a 'Trusted Partner' for the Association

Declaration of ‘Trusted Partner’ with the Association… From Responsible Lease of Office Facilities to Station Connection

As the contractor selection date for the Yongsan Maintenance Depot Front Section 1 approaches, the proposal conditions of bidding construction companies are becoming a daily topic of discussion at the promotional center. Among them, POSCO E&C is drawing attention from association members by introducing the 'responsible lease' condition, which was proven at Yeouido Parc 1, to Yongsan Maintenance Depot Front Section 1.

This is an unprecedented proposal in which the contractor is directly involved in the activation of office facilities, taking responsibility for vacancy risks, going beyond simple participation in construction.

POSCO E&C attracted industry attention during the development of Yeouido Parc 1 not only for its commitment to responsible completion but also for its responsible lease approach to office spaces. In particular, the company demonstrated outstanding execution by attracting key tenants to the large-scale office facility of approximately 65,000 pyeong and directly carrying out customized construction for companies.

POSCO E&C is evaluated as the main driver that revitalized the previously stagnant Yeouido office market, not merely by supplying space, but by providing customized construction based on actual business district demand and differentiated tenant strategies.

A POSCO E&C representative explained at the promotional center, "A responsible lease is different from a simple payment in kind. It is a condition that proposes not only the activation of the commercial area and attraction of office facilities, but also the maximization of asset value," adding, "Unlike simple construction, POSCO E&C's unique strength lies in its goal to activate the office facilities at Yongsan Maintenance Depot even after completion, which sets us apart from competitors."

In contrast, the payment in kind for office facilities proposed by a competitor is reportedly limited to compensating only 10% of the construction cost in the event of unsold units. It is pointed out that not only is the scale of payment in kind small, but it is also far from increasing the actual asset value of association members, such as through the activation of office facilities and securing tenant companies.

Furthermore, POSCO E&C is known to have participated in the construction of the underground passage connecting Yeouido Station on Line 9 and Parc 1 at this project site.

This is a complex execution case that goes beyond simple construction, considering both the influx of floating population and the activation of the commercial area. This 'administrative and technical capability for connecting cities' is expected to be utilized in the Yongsan Maintenance Depot project as well.

POSCO E&C has proposed the 'POSCO Big Link' strategy for Yongsan Maintenance Depot Front Section 1, with the 'Station Big Link' aiming to connect Yongsan Station and Sinyongsan Station into a single underground network within Section 1, thereby maximizing both accessibility and profitability for office and commercial facilities.

This is evaluated not as a mere idea, but as a feasible plan, because POSCO E&C has already completed a long-term preliminary feasibility review of the underground connection before bidding. The company has also proven its track record and administrative capabilities through several cases, including the underground connection between Yeouido Parc 1 and Yeouido Station on Subway Line 9, thereby earning the trust of association members.

Such experience demonstrates that POSCO E&C possesses the practical technological capabilities and know-how required to realize projects even within the complex permit system of downtown Seoul.

An industry official stated, "While HDC Hyundai Development Company claims to be 'experts of Yongsan,' it is difficult to find actual construction records or experience in directly connecting underground infrastructure. In a project traversing the heart of Yongsan, proven execution capabilities are even more important."

A POSCO E&C representative said, "We do not see Yongsan Maintenance Depot Front Section 1 as a simple redevelopment project," adding, "We are confident that Section 1 will become the center of the upcoming 'NEW YBD (Yongsan Business District)' era in Yongsan."

The representative continued, "POSCO E&C is a company with proven execution capabilities, having planned spaces, connected cities, and enhanced building value and urban vitality as seen in Yeouido Parc 1. For this reason, we plan to build trust with association members as the most suitable partner for Yongsan Maintenance Depot Front Section 1."