Samsung C&T Wins Gaepo Woosung 7th Project... Voting Driven by Brand Power

Samsung C&T Wins by 68 Votes in Rematch
Promises "Fifth-Generation Raemian Design, 2.5 Billion KRW per Pyeong"

As a result of the contractor selection vote for the Gaepo Woosung 7th Reconstruction Project, Samsung C&T was chosen as the contractor, defeating Daewoo E&C by a margin of 68 votes. This marks another victory for Samsung C&T in a rematch against Daewoo E&C after five years.

The Gaepokuseong 7th Reconstruction Association held a regular general meeting on the 23rd at the Seoul Housing and Communities Corporation to discuss the agenda of selecting a construction company. Employees from both companies greeted the association members, appealing for their votes.

At the regular general meeting of the Gaepo Woosung 7th Association held in the main auditorium of the Seoul Housing and Communities Corporation in Gangnam-gu, Seoul, on the afternoon of August 23, Samsung C&T was selected as the contractor, receiving 403 out of 742 votes cast by members present and absentee voters. Daewoo E&C received 335 votes, while there were 4 abstentions or invalid votes. Immediately after the announcement of the vote count, Samsung C&T employees cheered in celebration.

Following the selection, Kim Dohyung, Executive Director of the Housing Sales Division 2 at Samsung C&T, stated, "I, along with all our employees, promise to deliver a fast project, lower member contributions, and make this a landmark for Gaepo. I consider today the first day of the partnership between Gaepo Woosung 7th and Samsung C&T. Starting today, we will do our utmost every single day to create a landmark."

The competition between Samsung C&T and Daewoo E&C is the first in five years since the Banpo Jugong Complex 1 Phase 3 (Raemian Triniwon) project in 2020. At that time, Samsung C&T was selected as the contractor by a margin of 70 votes, securing 52% of the votes.

Throughout the general meeting, association members engaged in heated discussions about their reasons for supporting each construction company. A female member in her 60s remarked, "I'm concerned that Daewoo E&C is part of the Jungheung Group. I visited Raemian One Bailey and One Pentas built by Samsung C&T and was impressed, so I hope they take on our project as well. Regardless of who wins, I want the project to proceed quickly. If there are delays, the contributions will increase, which is a concern." Another member in her 50s said, "For those planning to live in the complex, the layout is important, and I think Daewoo's design is better, so I voted for them. Older members seem to value the brand more than the blueprints or project terms."

The Gaepo Useong 7th Reconstruction Association is counting votes after the contractor selection vote at the regular general meeting held on the 23rd at the Seoul Housing and Communities Corporation. Photo by Jinju Han

At the joint briefing session before the vote, Samsung C&T highlighted the value of the Raemian brand as its key differentiator. Jeong Seongmun, Head of the Gangnam Project Office at Samsung C&T, emphasized, "With the third-generation Raemian, we ushered in the era of 1 billion won per pyeong, and with the fifth generation, we will achieve 2.5 billion won per pyeong. Samsung C&T has steadily built its brand power for over a decade, and the gap with the second place is overwhelming. We propose definite terms and compliant designs, not tricks or loopholes."

Samsung C&T promised to sign the contract within three months of selection and to expedite the project schedule, aiming to start construction within three years. Jeong added, "We plan to complete the architectural review in the first half of next year, relocate residents within two years, and begin construction within three years. In contrast, the competitor took over 13 months for the contract at Hannam District 2, and we expect it will take them more than 12 months again this time."

Regarding concerns from some members about not submitting a completion guarantee, Jeong explained, "We have already included the completion guarantee in Article 47 of the contract submitted. We will ensure that the association's contract includes clear provisions on completion guarantees in the future."

Samsung C&T proposed 'Raemian Lumiwon' as the new name for the Gaepo Woosung 7th complex and decided to apply the fifth-generation Raemian design to the project. The company promised the largest service area per household in Gaepo-dong (13.1 pyeong), the largest community area per household in Gaepo-dong (3.8 pyeong), 997 units with fifth-generation layouts, 778 units with private terraces, and 777 units with special views. Samsung C&T also collaborated with global design firm Arcadis to propose a curved exterior and specialized community facilities such as a sky lounge. A post-occupancy service center will be operated for three years after move-in.

Night view perspective of 'Raemian Lumiwon' proposed by Samsung C&T for Gaepo Woosung 7th Complex. Photo by Samsung C&T

Samsung C&T proposed to secure project and relocation loan interest rates at "the lowest market rates at the time of financing, based on the industry's highest credit rating." The company pledged to secure all essential project and project promotion costs at the lowest rates and to provide additional relocation loans at "LTV 150% + alpha." The construction cost was set at 8,689,000 won per 3.3 square meters, with a total construction cost of 675,667,290,000 won, and the construction period was proposed as 43 months after groundbreaking. For construction cost adjustments due to price fluctuations, the arithmetic average of the Construction Cost Index and Consumer Price Index would be applied. In the event of construction delays attributable to the contractor, a penalty of 0.1% of the contract amount per day of delay would be imposed.

Meanwhile, Daewoo E&C aimed to make Gaepo Woosung 7th the first renewal project for its high-end brand 'Summit,' but failed to win the contract. On the day of the general meeting, CEO Kim Bohyun visited the site with company executives and staff. Daewoo E&C presented terms such as a CD+0.0% interest rate for essential project costs, progress payments from pre-sale revenue, a completion guarantee, covering the cost of connecting to Daecheong Station, and an 18-month grace period for construction cost inflation. The company also proposed special designs for 'Summit Pranity,' including 120 sky galleries, three generations of tower-type layouts, 662 units with three-sided open layouts, elevated site levels, and private community and amenity spaces.

Gaepo Woosung 7th is a complex completed in December 1987, consisting of 15 buildings with a maximum of 14 floors and 802 units. After reconstruction, it will be transformed into a complex with up to 35 floors and 1,122 units. With a low floor area ratio of 157%, it is considered a highly profitable and attractive project.