Hyundai Motor Group to Build GBC as Three 49-Story Towers... Increased Public Contribution, Completion Targeted for 2031 (Comprehensive) [Real Estate AtoZ]

Seoul City and Hyundai Motor Decide to Increase GBC Public Contribution by 223.6 Billion Won
Observation Deck on the 49th Floor, Exhibition and Performance Halls Along Yeongdong-daero
Green Space Twice the Size of Seoul Plaza Secured, Targeting Comp

Seoul City and Hyundai Motor Company have decided to construct the Global Business Complex (GBC), which will be built on the Korea Electric Power Corporation site in Samseong-dong, as three buildings with a maximum of 49 floors. The amount of public contribution has been increased to approximately 2 trillion won, more than 200 billion won higher than the amount set over a decade ago. In addition to taking on some extra responsibilities for traffic improvement measures, they have also agreed to create 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 across three buildings, including office spaces, hotels, retail facilities, a performance hall, and an exhibition center, with a target completion date by the end of 2031. Perspective view of GBC. Provided by Seoul City

Negotiations Concluded After One Year... Largest Green Space in a Mixed-Use Complex

Seoul City announced on the 6th that it completed the additional negotiations for the GBC project, which includes these details, on December 30. Previously, Hyundai Motor Group changed its business plan, including the maximum building height, leading to further negotiations with the city, which holds the approval authority.

The GBC project is a development that will build Hyundai Motor Group’s new headquarters and more across from COEX. In 2014, Hyundai Motor Group purchased the former KEPCO site for 10.55 trillion won. After preliminary negotiations with Seoul City in 2016, they agreed to construct a mixed-use complex with office, hotel, and cultural facilities up to 105 floors. However, due to military operational restrictions and changes in internal and external conditions, Hyundai Motor Group submitted a revised plan in February last year to build three buildings, each up to 54 floors. After discussions in areas such as urban planning, architecture, transportation, and public contribution, final negotiations were concluded.

A Seoul City official explained, "Although Hyundai Motor Group initially proposed 54 floors in its revised plan, the number of floors was adjusted as the design became more concrete, including higher ceilings for offices and lobbies. However, the height plan (242 meters) remains unchanged."

The three towers of the GBC Tower complex will be constructed with heights ranging from 8 basement levels to 49 floors above ground. The 13-story podium garden will be open for public use. The exhibition hall and performance venue will be built along Yeongdong-daero. GBC site plan. Provided by Seoul City

The GBC will include office facilities for company headquarters, as well as hotels, retail spaces, an exhibition hall, and other cultural facilities such as a performance venue. The floor area ratio will be set at 800%, and the building coverage ratio at 60%. The exhibition hall will feature interactive content, and the performance venue will be built to seat 1,800 people, accommodating a variety of performances including classical music and opera. The top floor of the tower buildings will feature an observation space with restaurants and cafes.

Kim Changgyu, Director of Balanced Development at Seoul City, stated, "Without any reduction in the public contribution amount, an observation space will be installed on the top floor of the northern tower. The podium garden, which will be about 13 stories (40 meters) high, was originally planned as a closed space, but Mayor Oh Sehoon requested that it be open for citizens to use freely. The exhibition hall and performance venue will also be installed along the main frontage of Yeongdong-daero to improve public access."

At the center of the GBC, a 14,000-square-meter urban forest connecting Yeongdong-daero and the ground plaza will be created. This will be the largest green space within a privately developed mixed-use complex in Korea. The space will be larger than Seoul Plaza (13,207 square meters), and when combined with the ground plaza above Yeongdong-daero (13,780 square meters), it will provide a green area for citizens that is twice the size of Seoul Plaza. Below this area, the "Great Court," a complex consumer and cultural space connected to the Yeongdong-daero underground transfer center, will be established.

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

Public Contribution Increased by 233.6 Billion Won... Target Completion by 2031

The parties agreed to increase the public contribution by 233.6 billion won. The amount will rise from 1.7481 trillion won, as agreed in 2016, to 1.9827 trillion won. The original plan, based on constructing a 105-floor building with specific designated uses, became difficult to fully implement, so the previously discounted amount will now be provided entirely as public contribution. Although the specific designated uses will be abolished, large-scale cultural facilities such as the exhibition hall will be installed and operated to enhance public benefit. In addition to the initially planned traffic improvement measures, Hyundai Motor Group will also partially fund road improvement projects in the International Exchange Complex District.

A Seoul City official explained, "The total public contribution is based on the time of the zoning change to general commercial area (May 2016). The zoning change has already been made, and this negotiation only involves changes to the architectural plan. If the increased amount of 233.6 billion won is converted to present value, it has an effect of more than 400 billion won."

Currently, the GBC public contribution funds are being used for the underground complex development of Yeongdong-daero, remodeling of Jamsil Main Stadium, infrastructure construction in the International Exchange Complex District, surrounding road projects, and the creation of waterfront spaces along the Han River and Tancheon. The underground transfer center beneath Yeongdong-daero will serve as a transportation hub connecting five railway lines. The remodeled Jamsil Main Stadium will include training centers and accommodations for professional athletes, as well as sports facilities for citizens. In addition, new road improvement projects to alleviate traffic congestion around Samseong Station and a pedestrian bridge connecting Gangnam and Jamsil over Tancheon will also be established.

The preliminary negotiations for the GBC were completed in 2016, and the district unit plan was established in 2019. As a result, Seoul City explained that it is not possible to use the public contribution for balanced development in northern Seoul. Regulations allowing the use of public contributions across the entire city have only been applied to district unit plans newly designated since 2021.

GBC Public Contribution Project Details. Provided by Seoul City

Director Kim Changgyu stated, "About 1.3 trillion won, or approximately 60% of the public contribution, will be invested in the Yeongdong-daero project, which is scheduled to be completed by the end of 2029. Currently, about 25% of the public contribution is being used for construction projects such as Yeongdong-daero and the remodeling of Jamsil Main Stadium."

Seoul City aims to complete the project by the end of 2031. Construction on the site began in May 2020 with excavation work. As of last month, the construction progress rate stood at 5.6%. By the end of March, the city plans to finalize the district unit plan reflecting the negotiation results and sign the public contribution implementation agreement. The city also aims to complete various impact assessments and architectural plan reviews by the end of this year.

If the previously stalled Hyundai Motor Group GBC project gets back on track, it is expected to have a significant impact, including job creation. Construction costs are estimated at 5.24 trillion won. The GBC development is expected to generate 513 trillion won in production inducement, create 1.46 million jobs, and induce over 70 trillion won in income.

Kim Changgyu, Director of Balanced Development at Seoul City, stated, "Through this additional negotiation, we have planned to build a new landmark with greatly expanded leisure spaces for citizens in the core area of the International Exchange Complex District. We will swiftly push forward the long-delayed GBC development to complete it as a new growth engine for the city and an iconic space representing Seoul."