Four Major Firms, Including Hyundai and GS Construction, Show Interest in 2 Trillion Won Seongsu District 1 Project [Real Estate AtoZ]

Bid Deadline Set for February 20
Hyundai and GS Construction Show Strong Determination to Win Contract

Four major domestic construction companies attended the on-site briefing for the Seongsu District 1 redevelopment project, which is valued at over 2 trillion won. There is a growing consensus that Hyundai Construction and GS Construction are showing strong determination to win the contract, making it likely that the competition will come down to these two firms.

Hyundai Construction employees attending the on-site briefing for Seongsu District 1 held on the 30th are greeting the union members while holding a banner. Photo by the reader

According to the maintenance industry on December 30, Hyundai Construction, GS Construction, HDC Hyundai Development Company, and Kumho Construction participated in the on-site briefing held by the housing redevelopment association for Seongsu District 1 on this day.

On this day, Hyundai Construction employees lined up holding a banner that read, "We will complete a new Seongsu that the world admires," expressing their determination to win the contract to the association members. GS Construction, which had participated alone in the previous bid in August, also attended the briefing this time.

The bid deadline is set for February 20 next year. The redevelopment project for District 1 involves the construction of 3,014 apartment units and related welfare facilities in 17 buildings, with 4 basement levels and up to 69 floors above ground. The announcement of the revised maintenance plan has been completed, and the association is preparing for an integrated review by the Seoul Metropolitan Government.

The construction cost per 3.3 square meters is 11.32 million won, and the total project cost is 2.154 trillion won. The association requires the full bid deposit of 100 billion won to be paid in cash. The conditions also specify that forming a consortium is not allowed.

If competitive bidding is successful, the association plans to hold a joint briefing in early April next year, followed by a general meeting at the end of the same month.

This announcement for selecting the construction company constitutes the first round of bidding due to changes in the bidding guidelines. If competitive bidding is not achieved even after the second round and the bid fails, the association may proceed with a private contract.

A bid was also held last August, but at that time, only GS Construction submitted a bid. The association had specified certain brand names in the finishing material standards for the bid guidelines, which some association members raised issues about. Guidelines were provided to use materials of the same grade or higher as those from Company A or Company B for about 60 items, including main entrances and elevators. In response, Seongdong District sent an official letter expressing concerns about possible collusion and requested that individual brands not be specified.