"Samsung Raemian Coming to Gwangju"... Samsung C&T Officially Announces Intention to Join Singa Redevelopment Project

Notification to Samsung C&T to Be Made After This Week’s General Assembly of Representatives
Termination and Cost Settlement Talks with Bitgoeul Consortium to Follow Commitment
Submission of Commitment Letter and Resolution of Contractual Relationship with Current Contractor Still Remain

The pace of normalization for the long-stalled housing redevelopment project in Singa-dong, Gwangsan-gu, Gwangju is expected to accelerate as Samsung C&T Corporation has expressed its intention to participate in the project. This week, the association plans to initiate the process of designating Samsung C&T as the preferred negotiating partner through its general assembly of representatives.

According to coverage by The Asia Business Daily on August 11, Samsung C&T officially informed the Singadong Housing Redevelopment and Maintenance Association of its intention to participate in the contractor selection process.

Panoramic view of the redevelopment site in Singadong, Gwangsan-gu, Gwangju. Photo by Kim Wanjung

Previously, the association sent an official letter to Samsung C&T on August 5, requesting a reply regarding its intention to participate as the preferred negotiating partner by August 12. While internal reviews at Samsung C&T were expected to take about a week, the company delivered a positive stance ahead of the deadline.

The association’s board of directors convened on the evening of August 10 to discuss Samsung C&T’s response and the necessary follow-up steps for designating the company as the preferred negotiating partner. This week, the association plans to relay the decision to designate Samsung C&T as the preferred negotiating partner to Samsung C&T once again, following approval at the general assembly of representatives.

Once notified, Samsung C&T is expected to complete its internal procedures and submit a letter of commitment to the association. The association estimates it will take about a week to receive the letter of commitment.

Yang Byungman, head of the association, stated, "The board discussion concluded successfully, and we plan to once again communicate the decision to designate Samsung C&T as preferred negotiating partner after this week's general assembly of representatives. It is expected to take about a week for Samsung C&T to complete its internal procedures, after which we plan to receive the letter of commitment."

Upon receipt of the letter of commitment from Samsung C&T, the association intends to meet with the current contractor, Bitgoeul Consortium, to discuss the termination of the contract and settlement of costs. Once the contractual relationship with the existing contractor is resolved, negotiations between the association and Samsung C&T on specific project terms—such as construction costs, design, specialized plans, and the construction schedule—are expected to commence in earnest.

However, even if Samsung C&T is designated as the preferred negotiating partner, this does not immediately guarantee the final selection as contractor or the application of the Raemian brand. The submission of the commitment letter by Samsung C&T, resolution of the existing contractor's contract, and the association's general meeting all remain as necessary procedures.

Perspective view of the Gwangju Singadong Residential Redevelopment Project.

The Singa-dong redevelopment project involves the construction of 4,718 housing units in 51 buildings of up to 29 stories on a 288,058-square-meter site in Singa-dong, Gwangsan-gu, Gwangju. The total project cost is approximately 1.8 trillion KRW.

The project was designated as a redevelopment zone in 2011, received project implementation approval in 2018, and project management and disposal approval in 2020. Relocation and demolition were completed in 2023, but conflicts over construction costs and the general sales price delayed groundbreaking for about three years.

The previous contractor, Bitgoeul Consortium, consisted of DL E&C, Lotte Engineering & Construction, GS E&C, SK ecoplant, and Hanyang. The association and the consortium agreed to adjust the construction cost per 3.3 square meters from 4.45 million KRW to 7.06 million KRW, but failed to reach a consensus on the general sales price. Subsequent efforts by the association to select a new contractor through two bidding rounds were unsuccessful, leading to a shift to a negotiated contract process.

If Samsung C&T is ultimately selected as the contractor, it will mark the construction of a new apartment complex by Samsung C&T in Gwangju for the first time in about 30 years. The last apartment built by Samsung C&T in Gwangju was "Cheomdan Samsung" in Wolgye-dong, Gwangsan-gu, completed in 1997.

The association plans to address the termination of the existing contractor's contract and approval of Samsung C&T as preferred negotiating partner at a general meeting on December 19. The current target for groundbreaking is June next year.

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