Hyundai Motor to Build GBC as Three 49-Story Towers, Increases Public Contribution [Real Estate AtoZ]

Negotiations with Seoul City Concluded After Revising the 105-Story Construction Plan
Observation Deck, Performance Hall, and Exhibition Spaces to Be Built on the Top Floors of the Tower Buildings
Public Contribution Increased by 233.6 Billion Won, to Be Invested in Transportation Infrastructure
Green Space Twice the Size of Seoul Plaza Secured, with Completion Targeted for 2031

Seoul City and Hyundai Motor Company have agreed to construct the Global Business Complex (GBC) on the former KEPCO site in Samseong-dong as three buildings with up to 49 floors. As the number of floors was reduced, making it difficult to fulfill certain designated uses, the planned public contribution amount was increased to approximately 2 trillion won. The project will include an observation space on the top floor, exhibition and performance halls, and a green space twice the size of Seoul Plaza.

Seoul City and Hyundai Motor Company announced on the 6th that they have completed additional negotiations for the GBC to be built on the KEPCO site in Samseong-dong. The GBC will consist of up to 49 floors, three buildings including office, hotel, retail facilities, a performance hall, and an exhibition hall, with a target completion date by the end of 2031.
GBC perspective view. Provided by Seoul City

Seoul City announced on the 6th that it completed additional negotiations for the GBC project, which began with a proposal from Hyundai Motor Group, on December 30 of last year. Hyundai Motor Group's public contribution amount has increased from 1.7491 trillion won, set in May 2016, to 1.9827 trillion won, and the company will also bear additional traffic improvement measures.

The GBC project involves building Hyundai Motor Group’s new headquarters and related facilities across from COEX. Hyundai Motor Group purchased the former KEPCO site in 2014 for 10.55 trillion won. In 2016, following preliminary negotiations with Seoul City, the plan was to construct a mixed-use complex with office, hotel, and cultural facilities up to 105 stories high. However, due to military operational restrictions and changing internal and external conditions, Hyundai Motor Group submitted a revised plan in February last year to build three buildings with 54 floors each. After discussions in areas such as urban planning, architecture, transportation, and public contributions, final negotiations were concluded. Excavation work is currently underway at the site, with a progress rate of 5.6% as of the end of December last year.

A Seoul City official explained, "Although Hyundai Motor Group initially proposed 54 floors in their revised plan, the number of floors was adjusted as the design became more detailed, such as increasing the height of office and lobby floors. However, the planned height remains the same at 242 meters."

A 14,000㎡ urban forest connecting Yeongdong-daero and the ground plaza will be created at GBC. Combined with the above-ground plaza on Yeongdong-daero, a green space twice the size of Seoul Plaza will be secured. Provided by Seoul City

Through additional negotiations with Seoul City, Hyundai Motor Group will build three buildings with up to 49 floors (242 meters high), housing office spaces, hotels, retail facilities, exhibition halls, and performance venues. The floor area ratio will be 800%, and the building coverage ratio will be 60%. The exhibition hall is expected to feature hands-on science exhibitions in collaboration with world-class science museums, focusing on fundamental science. The performance hall, with approximately 1,800 seats, will be designed to accommodate various performances such as classical music, opera, and musicals.

An observation space will be installed on the top floor of the tower buildings, offering views of major Seoul landmarks such as the Han River and Gangnam. There will be a direct elevator from the ground to the observation space, and amenities such as restaurants and cafes will be provided inside the observation area.

At the center of the GBC, a large-scale 14,000㎡ "urban forest" will connect Yeongdong-daero and the ground plaza. This will be the largest green space within a privately developed mixed-use complex in Korea, larger than Seoul Plaza (13,207㎡). Combined with the above-ground plaza on Yeongdong-daero (13,780㎡), a citizen green space twice the size of Seoul Plaza will be secured. Below the urban forest, a multi-purpose consumption and cultural space called the "Great Court" will be created, linked to the Yeongdong-daero underground transit center.

GBC Layout. Provided by Seoul City

The key issue of the public contribution amount was resolved by agreeing to increase it by 233.6 billion won. The original plan, based on constructing a 105-story building, designated specific uses such as an observatory and exhibition/convention facilities, but as it became difficult to fulfill these, the previously planned deductions will now be fully provided as public contributions. While the specific designated uses will be abolished, large-scale cultural facilities such as exhibition halls, performance venues, and observation spaces will be installed and operated to enhance public value. Hyundai Motor Group will also provide additional road improvement projects within the International Exchange Complex district, in addition to the originally planned transportation improvements such as the expansion of Samseong Station and the installation of a bus transfer center.

A Seoul City official stated, "The total public contribution was determined based on May 2016, when the zoning change to general commercial area occurred. The zoning change has already been completed, and this negotiation only changes the architectural plan. When converted to present value, the 233.6 billion won increase is worth more than 400 billion won."

Currently, the GBC public contribution funds are being used for key infrastructure in the International Exchange Complex district, such as the underground development of Yeongdong-daero, remodeling of Jamsil Main Stadium, road projects to alleviate traffic congestion in the area, and the creation of waterfront spaces along the Han River and Tancheon. In particular, the Yeongdong-daero underground transit center will serve as a hub connecting five rail lines (GTX-A, GTX-C, Subway Lines 2 and 9, Wirye-Sinsa Line). The stadium remodeling will expand training centers and accommodations for professional athletes in athletics, fencing, and taekwondo, as well as facilities for citizen sports. Additional projects include road improvements around Samseong Station to relieve traffic congestion and the construction of a pedestrian bridge connecting Gangnam and Jamsil over the Tancheon stream.

GBC Public Contribution Project Details. Provided by Seoul City

The city aims to complete the project by the end of 2031. In the first half of this year, it plans to proceed with an amendment to the urban management plan (district unit plan) reflecting the negotiation results, and to sign a public contribution implementation agreement. Subsequent steps will include various impact assessments and architectural plan reviews.

The normalization of Hyundai Motor Group’s GBC project is expected to stimulate the economy and create jobs amid a downturn in the construction industry. Construction costs are expected to reach 5.24 trillion won. The production inducement effect from GBC development is estimated at 513 trillion won, with job creation for approximately 1.46 million people and an income inducement effect exceeding 70 trillion won.

Kim Changgyu, Director of Balanced Development at Seoul City, stated, "Through this additional negotiation, we have planned to establish a new landmark with greatly expanded citizen leisure spaces, including a large-scale open urban forest, exhibition and cultural facilities, and rooftop gardens at the core site of the International Exchange Complex. We will swiftly push forward the long-stalled GBC development to complete it as a new growth engine for the city and a symbolic space representing Seoul."