Seoul City and Hyundai Motor Group Near Final GBC Deal... Project Restarts After 5 Years [Real Estate AtoZ]

Final Negotiations on Public Contribution Conclude
Contribution Expected to Reach Around 2 Trillion Won
Completion Projected as Early as 2029

The Global Business Complex (GBC) project has entered the final stages of additional negotiations between the Seoul Metropolitan Government and Hyundai Motor Group regarding design changes. After five years of stagnation since construction began in 2020, the project is expected to gain momentum by completing subsequent approval procedures within the year.

According to the Seoul Metropolitan Government on December 15, Hyundai Motor Group and the city have recently entered the final phase of additional negotiations on the revised GBC development plan.

A design bird's-eye view of the GBC to be developed in the Samseong-dong area of Gangnam-gu, Seoul. Provided by Hyundai Motor Group

The public contribution amount has reportedly been agreed upon at around 2 trillion won. This is similar to the sum of the public contribution set during the initial 2016 negotiations (1.7491 trillion won) plus 233.6 billion won in city fee reductions, which were granted on the premise of constructing a 105-story building.

Once negotiations are complete, the city plans to proceed with follow-up procedures after deciding on the changes to the district unit plan. Although a review of whether to reassess the traffic impact due to the design changes was considered during negotiations, it was ultimately decided that no reassessment would be conducted at the district unit plan amendment stage. However, a traffic impact assessment will be carried out during the building permit review process.

The completion date is expected to be as early as 2029 or 2030. Some observers suggest that it could be delayed even further.

The GBC project is a plan to build Hyundai Motor Group’s new headquarters and other facilities on the former Korea Electric Power Corporation site in Samseong-dong. Originally, Hyundai Motor Group upgraded the land use from a Category 3 General Residential Area to a General Commercial Area in 2016, under the condition of constructing a 105-story landmark building. The company was also set to receive incentives such as an increased floor area ratio of up to 800%.

However, in February last year, Hyundai Motor Group submitted a revised plan to build two 55-story towers instead of a single 105-story tower, which led to friction. The city maintained that since the public contribution was determined based on the 105-story plan, any changes to the construction plan would require a new agreement. In response, Hyundai Motor Group accepted the city’s position in February last year and resubmitted a plan to divide the original single 105-story tower into three 54-story towers.

According to the revised plan, the three towers will incorporate eco-friendly architectural technologies and future mobility concepts. In the center of the complex, a large green space of approximately 14,000 square meters-twice the size of a soccer field-will be created.