Lotte Construction Wins 920 Billion Won 'Galhyeon 1 District' Project, Regains Top Spot in Orders

Selected Construction Company with 88% Union Support
Won After Single Bid and Two Failures

Hyundai Construction for Dongdaemun-gu Jegi 4 District
Bangbae Samik Confirmed Alongside Daelim and Others

A bird's-eye view of Galhyeon 1 District, Eunpyeong-gu, Seoul.

[Asia Economy Reporter Choi Dong-hyun] The main construction contractors for major redevelopment projects in Seoul's Gangnam and Gangbuk areas, including Eunpyeong-gu Galhyeon 1 District, Dongdaemun-gu Jegi 4 District, and Seocho-gu Bangbae Samik, have been consecutively confirmed.

According to industry sources on the 25th, Lotte Construction was selected as the contractor for the Galhyeon 1 District redevelopment project, with a construction cost of 920 billion KRW. Lotte Construction, the sole bidder in this district, secured the construction rights with about 88% support at the contractors' selection general meeting held by the association on the 23rd. Galhyeon 1 District, located in Galhyeon-dong, Eunpyeong-gu, covers an area of 238,966㎡ around the 300 area and is a large-scale redevelopment zone where 4,116 apartment units will be built across 32 buildings ranging from six basement floors to 22 above-ground floors. It is the second-largest redevelopment project in Seoul this year after Hannam 3 District in Yongsan-gu. Initially, Hyundai Construction participated in the bidding last October, but the association invalidated the bid citing issues such as missing drawings and proposals exceeding collateral relocation costs. The association confiscated Hyundai Construction's bid deposit of 100 billion KRW and restricted its participation in the bidding, and both parties are currently engaged in litigation. Subsequently, major construction companies such as G and H showed interest in the project, but ultimately, Lotte Construction was the sole bidder, and after two failed attempts to select a contractor, the contractor was finally confirmed this time. With this contract, Lotte Construction has secured a total of 1.5887 trillion KRW in redevelopment project construction rights this year alone, surpassing Hyundai Construction, which previously held first place with 1.0541 trillion KRW.

Hyundai Construction was selected as the contractor for Jegi 4 District in the Jegi-dong area of Dongdaemun-gu. Hyundai Construction also won the construction rights through a sole bid and private contract. The Jegi 4 District redevelopment project involves building 909 units in 11 buildings ranging from two basement floors to 25 above-ground floors in an aging residential area around Jegi Station on Subway Line 1.

Daelim Industrial will be responsible for the reconstruction of Bangbae Samik, well known as the residence of former Minister of Justice Cho Kuk. Daelim Industrial, the sole bidder, secured the construction rights through a private contract. This apartment complex, completed in 1981 with 408 units in a mid-rise complex, will be rebuilt into 721 units across eight buildings ranging from five basement floors to 27 above-ground floors. The complex is located south of Bangbae Station on Subway Line 2.

Meanwhile, contractor selection general meetings for Sinbanpo 21st in Jamwon-dong, Seocho-gu on the 28th and Banpo Jugong 1st Complex 3rd District reconstruction in Banpo-dong on the 30th are scheduled to be held consecutively. GS Construction and POSCO Construction are competing for Sinbanpo 21st, while Samsung C&T and Daewoo Construction are contending for Banpo Jugong 1st Complex 3rd District.

This content was produced with the assistance of AI translation services.