Gaepo Woosung 7th First Briefing: "Raemian Has Low Prices in Gaepo" vs "Daewoo's Design Cannot Obtain Permits"

First Joint Briefing Held at Setec on the 20th
Executives and Staff from Both Companies Line Up to Greet Union Members
Daewoo Highlights Sincerity with President Kim Bohyun in Attendance
Samsung Emphasizes Trust with Fifth-Generation Floor Plans and Top Credit Rating

"Raemian ranks last in market price in Gaepo. The brand does not determine the price." (Daewoo E&C)

"Daewoo E&C presented an alternative design that does not comply with the maintenance plan and cannot obtain the necessary permits." (Samsung C&T)

On the 20th, at the Setec Convention Center in Gangnam-gu, Seoul, employees and promotional staff from Samsung C&T and Daewoo E&C greeted union members at the 'Gaepo Woosung 7th Construction Contractor Selection 1st Joint Promotional Briefing.' Photo by Hanjin Ju

At the 'Gaepo Woosung 7th Construction Contractor Selection 1st Joint Promotional Briefing' held on the 20th, Daewoo E&C and Samsung C&T engaged in fierce competition. Both companies did not hesitate to criticize each other's proposals, pointing out inferior conditions compared to other projects and criticizing design plans. By company, Daewoo E&C had President Kim Bohyun personally promise to minimize the burden on union members and guarantee completion. Samsung C&T emphasized its fifth-generation Raemian architectural design and brand value.

On this day, the Setec Convention Center in Daechi-dong, Gangnam-gu, Seoul, was packed with union members who came to attend the briefing. Some latecomers had to sit on temporary chairs or stairs to listen to the presentation. From the entrance, promotional staff from the construction companies lined up in two rows, holding large banners and greeting union members loudly with, "Hello, we will do our best."

At the 'Gaepo Useong 7th Phase Construction Contractor Selection 1st Joint Promotion Briefing' held on the 20th at SETEC Convention Center in Gangnam-gu, Seoul, employees and promotional staff from Samsung C&T and Daewoo E&C lined up and greeted attendees. Photo by Hanjin Joo

'Summit' Renewal's First Project Site and Business Terms Highlighted by Daewoo E&C

Daewoo E&C had President Kim Bohyun and executives take the stage together to express their determination to win the contract. President Kim emphasized, "With the renewal of Summit after 11 years, I am confident that Gaepo Woosung 7th will most clearly demonstrate the standard of Summit's premium." Summit is Daewoo E&C's luxury apartment brand.

Daewoo E&C highlighted business terms such as a mandatory project cost interest rate of CD+0.0%, payment for completed work from pre-sale revenue, a guarantee of completion, covering the cost of connecting to Daecheong Station, and an 18-month deferral of construction cost inflation. Choi Chiun, Head of the Urban Development Project Team at Daewoo E&C's Gangnam branch, explained, "Daewoo E&C estimates the project cost at 400 billion KRW and plans to procure funds at a negotiable certificate of deposit (CD) rate of +0.00%," adding, "The claim by Samsung C&T that 'the scope of Daewoo E&C's CD+0.0% applied project cost is 17 billion KRW' is completely untrue." He explained that they minimized the burden on union members by securing the lowest possible funding rate. He added, "Additional relocation funds are loans provided by financial institutions to the union, so the union's assets and project feasibility are important," and "In Gwacheon, both Hyundai E&C and Daewoo E&C secured funding at rates below 5%."

Kim Bohyun, President of Daewoo Construction (second from the left in the front row), and executives are entering the 'Gaepo Useong 7th Phase Construction Contractor Selection 1st Joint Promotion Briefing' held on the 20th at the SETEC Convention Center in Gangnam-gu, Seoul.

Regarding whether construction costs should be paid based on work progress in the case of post-sale, he explained, "When selling after completion, construction costs are paid according to work progress, and if it clearly benefits the project's feasibility, project financing (PF) for construction costs can be arranged." Payment based on work progress refers to paying construction costs monthly according to the progress of the work.

Daewoo E&C highlighted specialized design features included in 'Summit Pranity,' such as the Sky Gallery 120, introduction of a three-generation tower-type floor plan, 662 three-sided open units, elevation of the site level, and private community and amenities. In addition, the company pointed out that complexes such as 'Raemian Gaepo Luceheim' and 'Raemian Gwacheon Central Suite' have lower market prices compared to other complexes, stating, "The leading complex in the area is determined by how much a company makes people want to live there. The brand does not determine the price."

After the briefing, President Kim Bohyun told reporters, "Daewoo is truly desperate for this project. I felt I had to step up myself because I couldn't let Samsung, which only emphasizes house prices and brand value, win," adding, "Samsung C&T is looking to make a profit by investing in Gaepo Woosung 7th as a business, but Daewoo intends to give the profit to the union members and gain a reputation, which is a kind of management investment." He added, "We (Daewoo E&C) want to showcase a model project with the renewed Summit at Gaepo Woosung 7th and then make a profit afterward."

Samsung C&T Highlights Industry's Highest Credit Rating and Fifth-Generation Specialized Design

On the 20th, at the SETEC Convention Center in Gangnam-gu, Seoul, Samsung C&T explained the design details at the "Gaepo Useong 7th Phase Construction Contractor Selection 1st Joint Promotion Briefing." Photo by Hanjin Joo

Samsung C&T promised to make the complex the "best in Gangnam" by leveraging the industry's highest credit rating and specialized fifth-generation high-end design. The company also emphasized that it would procure all mandatory project and project promotion costs at the lowest interest rate, offer a loan-to-value (LTV) ratio of 150% for relocation funds, and apply a 43-month construction period without interruption. In particular, Samsung C&T highlighted that its 'AA+' credit rating means its funding rate is 2.0 percentage points lower than Daewoo E&C's, and that it can procure project funds with its own payment guarantee without requiring a guarantee from the Housing and Urban Guarantee Corporation (HUG).

In terms of design, Samsung C&T proposed the largest service area in Gaepo-dong (13.1 pyeong per unit), the largest community area in Gaepo-dong (3.8 pyeong per unit), fifth-generation floor plans for 997 units, private terraces for 778 units, and specialized view units for 777 units.

Kim Sangkuk, Executive Vice President of Samsung C&T's Housing Development Division, said, "We have worked to propose the optimal cost and construction period for this project," and urged, "At a time when external uncertainties are stronger than ever, please choose a company you can trust for the next 100 years without interruption."

Samsung C&T devoted considerable time to explaining the high-end philosophy and specialized design to be applied to this complex. Jeong Seongmun, General Manager at Samsung C&T, said, "We applied a fifth-generation floor plan, superior to fourth-generation models like One Bailey and One Pentas, to all units for union members," emphasizing, "With two- and three-sided open layouts and the largest service area in Gaepo-dong (13.1 pyeong), we are superior to competitors in every aspect except for the number of air conditioners."

Samsung C&T also criticized Daewoo E&C's alternative design as unlikely to pass the permitting process. General Manager Jeong pointed out, "In the case of Hannam District 2, the legal height limit in the maintenance plan was 90 meters, but Daewoo E&C submitted a bid for 118 meters, resulting in years of project stagnation due to permit delays. Repeated illegal designs should not be allowed," and added, "If you look at Daewoo's proposal, it states, just like in Hannam District 2, that 'all permit responsibilities lie with the union.'"

During the Q&A session with union members, there was a point raised that Samsung C&T had revised about 80 contract clauses. Lee Byungju, Head of the Gangnam Project Division, explained, "There are various contract documents between the union and the contractor, such as the contract, business proposal, and specifications, but the most important is the contract. The contractor reviews the union's proposal to make a better offer, and the contract must reflect this content to guarantee the rights of union members. We also required the submission of a finishing materials list, but the competitor did not submit a comparison table."