Lotte Engineering & Construction Secures 1.4 Trillion Won Seongsu Zone 4 Contract, Beating Daewoo Engineering & Construction

72.4% Approval in Union Vote at General Meeting
Selected as Final Contractor
Proposes High-End Brand "Seongsu Le-EL S70"

Lotte Engineering & Construction has been officially selected as the contractor for Zone 4 of the Seongsu Strategic Redevelopment Area in Seongdong-gu, a key redevelopment site along the Han River in Seoul. The battle for this large-scale project, with a total construction cost of 1.3628 trillion won, was fought between leading construction companies Lotte Engineering & Construction and Daewoo Engineering & Construction, with the majority of union members ultimately casting their votes for Lotte Engineering & Construction.

According to the construction industry on July 5, the Seongsu Zone 4 Redevelopment Association held a general meeting at the Gangnam Yerimdang Art Hall that afternoon to select the contractor. Out of a total of 753 union members, 620 exercised their voting rights. Lotte Engineering & Construction secured the contract with 449 votes (72.4%), surpassing Daewoo Engineering & Construction, which received only 169 votes (27.2%).

Perspective rendering of Lotte Construction's 'Seongsu L S70'. Lotte Construction

This project is one of the representative ultra-high-rise redevelopment projects along the Han River, involving the construction of 1,439 residential units and supporting facilities on an 89,828-square-meter site in the Seongsu-dong 2-ga 1-dong area, with buildings ranging from six basement levels to a maximum of 64 above-ground floors.

Lotte Engineering & Construction put forward its high-end brand “Le-EL” as the main branding, proposing “Seongsu Le-EL S70” as the name of the complex. The company emphasized its technical prowess in ultra-high-rise construction, highlighting its successful delivery of the Lotte World Tower, the tallest building in Korea. Lotte Engineering & Construction also drew support from union members by offering a specialized design that maximizes Han River views, the creation of premium community spaces, and financial support measures. Additionally, it boosted credibility by announcing plans to collaborate with LERA, a global specialist in structural engineering for world-class skyscrapers such as the New York World Trade Center and Dubai’s Emirates Towers.

The competition between the two companies leading up to the final selection was fierce. In February, the association announced a re-bid due to incomplete documentation from Daewoo Engineering & Construction but then withdrew the announcement, leading to procedural legitimacy controversies. Seongdong-gu Office also expressed administrative concerns regarding the process. Even after that, conflicts continued over design proposals and detailed business conditions. Just before the general meeting, there was a tense standoff between the two sides over whether Lotte Engineering & Construction’s minimum relocation expense offer of 2 billion won violated the bidding guidelines.

With this successful contract, Lotte Engineering & Construction’s cumulative orders for urban renewal projects this year have increased to a total of 2.8677 trillion won.

Currently, the Seongsu Strategic Redevelopment Area is divided into four zones, with redevelopment procedures underway in each. Following the selection of GS Engineering & Construction as the contractor for Zone 1 and now the successful selection for Zone 4, attention is turning to the fierce competition expected among major construction companies to secure the contracts for Zones 2 and 3, where redevelopment projects are set to accelerate in the future.

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