Gaepo Woosung 4th Restarts Contractor Selection... Attention on Three-Way Race Among Samsung, Lotte, and POSCO

Construction Tender Expected in February
POSCO and Lotte E&C Seen as Main Competitors
Samsung C&T Emerges as a Potential Wildcard

The "Gaepo Woosung 4th," a major redevelopment project in Gangnam, has completed the election of a new executive board and is resuming the process of selecting a construction company. With Samsung C&T joining the competition alongside the previously leading contenders, Lotte Engineering & Construction and POSCO E&C, attention is focused on whether a three-way race for the construction contract will unfold.

According to the maintenance industry on January 15, the Gaepo Woosung 4th Reconstruction Maintenance Association elected Kwon Youngmi as the new association president at the executive election general meeting held on December 20. The new president and executive team are composed of members from the Reconstruction Normalization Promotion Committee, which had led the effort to dismiss the previous executive board. The association dismissed the entire previous board in September last year after suspicions arose that the former president had designated specific finishing materials during the construction company selection process and had received entertainment from material suppliers.

Gaepo Woosung 4th. Naver Real Estate

With internal conflicts within the association now settled, the construction company selection process is expected to accelerate. The association plans to announce the tender for construction companies as early as the end of next month and hold a general meeting to select the contractor around May.

Multiple construction companies are expected to participate in the bidding process. Industry sources view the competition between POSCO E&C and Lotte Engineering & Construction as the most likely scenario. Although competition between the two companies was anticipated during the first bidding round in July last year, POSCO E&C faced the risk of license cancellation due to a series of fatal accidents, making its participation uncertain. As the possibility of Lotte Engineering & Construction being the sole bidder increased, the association decided to cancel the tender.

POSCO E&C has resumed its efforts to secure the contract, attending a site briefing for Gaepo Woosung 6th in the second half of last year, and is now considered highly likely to participate in this round of bidding. Lotte Engineering & Construction has continued its promotional activities targeting association members even after the first tender was canceled, demonstrating strong intent to win the contract. With plans to redevelop the site into a landmark in Dogok-dong with up to 49 floors, the company is determined to secure the project under its high-end "LE-EL" brand. A representative from Lotte Engineering & Construction stated, "We are actively considering participating in the bidding."

The variable is Samsung C&T. It is reported that Samsung C&T began its promotional activities within the complex immediately after the previous association president was dismissed. Although Samsung C&T had initially expressed its intention to bid for both Gaepo Woosung 4th and 7th last year, it ultimately decided to focus its resources on the 7th project and did not participate in the bidding. An industry insider commented, "Now that Samsung C&T has fulfilled a portion of its previously secured contracts, it is actively seeking to secure new projects in key locations," adding, "Whether the company will participate in the bidding will depend on the project conditions."

This complex, completed in 1985, consists of 459 apartment units. It is located near Maebong Station on Subway Line 3 and sits alongside Tower Palace by the Yangjaecheon Stream. Its proximity to the Daechi-dong private education district makes it one of the most desirable locations in Gangnam-gu. Additionally, 70% of the units are over 129 square meters in exclusive area, and the floor area ratio is only 145%, making the project highly profitable. The association has set the estimated construction cost at 649.9 billion won, with a per-pyeong (3.3 square meters) construction cost of 9.2 million won.