HDC Hyundai Development Company Wins Zone 1 Front of Yongsan Project by 107 Votes

HDC Hyundai Development Company Wins 250 Votes vs POSCO E&C's 143
Developer Strategy Focuses on "Connection"
Highlights Include Linking Yongsan Station and Attracting Park Hyatt
HDC Hyundai Development Company Surpasses 2 Trillion Won in Cumulative Orders This Year

HDC Hyundai Development Company has secured the construction contract for Zone 1 Front of the Yongsan Maintenance Depot, a project valued at 1 trillion won. In a head-to-head competition with POSCO E&C, HDC Hyundai Development Company won the bid by an overwhelming margin of over 100 votes.

A bird's-eye view of Zone 1 Front proposed by HDC Hyundai Development Company. Provided by HDC Hyundai Development Company

At the general meeting for the selection of the construction company for Zone 1 Front of the Yongsan Maintenance Depot, held on June 22 at Bergamo in Yongsan-gu, Seoul, HDC Hyundai Development Company was selected as the contractor after receiving 250 out of 396 votes. Of the total 437 union members, 396 attended the meeting. Rival POSCO E&C received 143 votes, while there were 3 invalid or abstained votes in total.

Unlike typical reconstruction and redevelopment projects, Zone 1 Front of Yongsan is a site with a significant proportion of commercial and office spaces. Taking these business characteristics into account, HDC Hyundai Development Company proposed detailed conditions for non-residential facilities, including connections to Yongsan Station and Sinyongsan Station, commercial facility operation plans, and the attraction of Park Hyatt.

HDC Hyundai Development Company also actively leveraged the potential synergy with its ongoing projects, such as the underground park in front of its headquarters at Yongsan Station I'Park Mall and the development of the former Railroad Hospital site. With this contract, the company has secured all the key development axes in Yongsan.

The union for Zone 1 Front plans to proceed with formal business procedures, including the approval of the project implementation plan and the establishment of a management and disposition plan. HDC Hyundai Development Company aims to begin construction in 2026 and will carry out design and permitting processes accordingly.

With this contract for Zone 1 Front, HDC Hyundai Development Company has succeeded in winning maintenance projects worth over 2 trillion won in the first half of this year. The cumulative amount of contracts won this year totals 2.2576 trillion won. This includes the Gangwon Wonju Dangae Jugong reconstruction (436.9 billion won), Busan Gwang-an Zone 4 redevelopment (419.6 billion won), and Yeonsan Zone 10 redevelopment, marking the first Seoul maintenance project secured this year.

For Zone 1 Front, HDC Hyundai Development Company proposed the project name "The Line 330," inspired by a 330-meter-long sky bridge. The company also suggested global partnerships with SMDP (architectural design), LERA (structural engineering), Samsung C&T Resort Division (landscape architecture), CBRE (non-residential real estate consulting), LPA (lighting design), and Park Hyatt (hotel). Additionally, the company proposed connecting the two stations, Yongsan Station and Sinyongsan Station, via underground passages within Zone 1 Front. There are also plans to attract Park Hyatt Hotel to the office facilities, ensuring organic integration of office, commercial, and accommodation spaces.

The business conditions that won the support of union members include: construction cost of 8.58 million won per pyeong (3.3 square meters); fixed interest rate of project costs at CD+0.1%; high-value in-kind payments for apartments, officetels, commercial, and office spaces; minimum relocation loan of 2 billion won; relocation loan LTV at 150%; construction period of 42 months; payment of 80% of refund before move-in; clear project schedule; and allocation of additional profits to the union.

Other proposed features include: maximizing the distance between buildings by reducing to three buildings; ensuring Han River views for 600 households; maximizing views with 2.5-meter-high windows; 100% of union member units with view-oriented bathrooms; efficient floor plans; 5.54 pyeong of community space per household; convenient community layout; 100% face-to-face street-level commercial spaces; and express ramps for underground parking lots.

One union member who attended the meeting said, "It was the only proposal that viewed the city as a single flow and showed how to connect and grow it. Throughout the bidding process, I felt sincerity and a sense of responsibility, and I was impressed by how the company treated the union as a true partner."

HDC Hyundai Development Company stated, "We thank the union members for choosing our differentiated proposal to enhance the value of Zone 1 Front of the Yongsan Maintenance Depot. To repay your trust, we will leverage our best technology and capabilities to make Zone 1 Front a landmark in Seoul. In addition to Zone 1 Front, we will continue to build I'Park landmarks in key areas of Seoul and major cities nationwide, so that union members can take pride in their choice."

The redevelopment of Zone 1 Front of the Yongsan Maintenance Depot will be carried out at 40-641 Hangangno 3-ga, Yongsan-gu, with plans to build 12 buildings ranging from 6 basement floors to 38 above-ground floors. The project will include 777 apartment units, 894 officetel units, sales and neighborhood living facilities, and office spaces. The total project cost proposed by the union is 955.7 billion won, with an estimated construction cost of 9.6 million won per 3.3 square meters.