Seongsu District 2 Begins Contractor Selection... Will DL E&C and Hyundai Development Face Off? [Real Estate AtoZ]

Association Expected to Announce Bidding Notice as Early as July 7

Bid Deposit Set at 100 Billion Won

Intense Behind-the-Scenes Competition Between DL E&C and IPARK Hyundai Development Company

Seongsu District 2, the second-largest area within the Seongsu Strategic Maintenance Zone, is officially starting the bidding process to select a construction contractor. With the total construction cost reaching approximately 1.8 trillion won, industry watchers are paying close attention to whether a competitive bidding war will unfold between DL E&C and IPARK Hyundai Development Company, both considered strong contenders.

According to the maintenance industry on July 7, the redevelopment maintenance association for Seongsu District 2 held a board of representatives meeting the previous day and approved the plan for selecting a contractor. The association is expected to issue a bidding announcement soon. The bidding deposit requirement is set at 10 billion won, which must be paid in a combination of 70 billion won in cash and a 30 billion won performance bond insurance certificate.

The Seongsu District 2 project involves building 2,359 residential units in towers up to 65 stories high on a 131,980-square-meter site in Seongsu 2-ga 1-dong. The total project cost amounts to 1.7864 trillion won, with the construction cost per pyeong (3.3 square meters) at approximately 11.6 million won. As one of the most prominent redevelopment projects along the Hangang Belt, Seongsu District 2 has attracted significant interest from major construction companies since last year, thanks to its excellent location and strong business potential.

The industry is watching closely to see if a competitive bidding process will materialize between DL E&C and IPARK Hyundai Development Company. Initially, POSCO E&C and DL E&C had been actively promoting themselves for this project, but contractor selection was suspended last year after the former head of the association resigned following a problematic incident involving a POSCO E&C promotion staff member. Subsequently, POSCO E&C officially withdrew from the bidding, and even DL E&C—previously expected to win by default—also did not participate, resulting in the first bidding attempt ending with no bids. However, after a new executive team was formed in March, both IPARK Hyundai Development Company and DL E&C have been quietly promoting themselves to association members.

An association representative stated, "Promotional staff from both DL E&C and IPARK Hyundai Development Company are frequently seen on site." Hyundai Engineering & Construction continued its promotional activities until early this year but withdrew around March.

Some observers predict that if both contractors compete for the project, it could become a fierce contest. This is because both companies have shown a lack of notable achievements in urban renewal projects in the first half of the year. While DL E&C secured the reconstruction contract for Mokdong Complex 6 earlier this year, that contract was awarded through a private negotiation rather than a competitive bid, so the company has yet to achieve results in competitive tenders. A DL E&C representative commented, "We are actively considering participation in the Seongsu District 2 bidding, and we plan to more aggressively expand our Acro brand in major Seoul projects such as Mokdong Complex 14 and Seongsu District 2."

IPARK Hyundai Development Company also has not secured any urban renewal project contracts so far this year. Among the top 10 construction companies by construction capability evaluation, Hyundai Engineering and IPARK Hyundai Development Company are the only two that have not won any contracts in the first half. An IPARK Hyundai Development Company official stated, "We plan to review participation in line with the direction pursued by the association."

The Seongsu Strategic Maintenance Zone is a redevelopment area located in Seongsu-dong, Seongdong-gu, Seoul, where a total of 9,428 apartment units will be constructed across 55 buildings in four districts. If all four districts are developed together, an ultra-large-scale redevelopment complex with about 10,000 units will rise along the Hangang River. Thanks to its river views and rare, highly desirable location, the area is often dubbed the "Banpo of Northern Seoul."

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