IPARK Hyundai Development Company Ramps Up Expansion of 'Yongsan Belt' at Sookdaeipgu Station Area as Performance Rebounds

Operating Margin Reaches 13% in Q2
Profitability and Financial Soundness Improve Together
Plans to Collaborate with US Firm SMDP on Design

Having regained profitability and improved financial soundness, IPARK Hyundai Development Company (HDC) is expanding its efforts to secure new projects in Yongsan.

According to the urban redevelopment industry on September 16, IPARK Hyundai Development Company attended a site briefing for the redevelopment project at Sookdaeipgu Station area, held by Daishin Asset Trust at the end of last month. Along with IPARK Hyundai Development Company, four other companies—Dongbu Construction, Geukdong Construction, Jeil Construction, and Jinheung Construction—participated in the event. The bidding will proceed in an open competition format, and forming a consortium is not allowed. The bid deposit is KRW 15 billion, and the deadline is October 8.

Aerial rendering of the redevelopment project near Sookdaeipgu Station, Yongsan-gu, Seoul. City of Seoul

The redevelopment project at Sookdaeipgu Station area aims to build five residential buildings with 900 units and auxiliary welfare facilities, ranging from six basement floors to 40 stories above ground, in the Galwol-dong area of Yongsan-gu, Seoul. The projected construction cost is approximately KRW 540 billion.

IPARK Hyundai Development Company’s attendance at the site briefing is interpreted as a move to expand its urban redevelopment project orders for the second half of the year, leveraging its recently improved performance and financial stability.

For the second quarter of this year, IPARK Hyundai Development Company reported consolidated sales of KRW 914.6 billion and operating profit of KRW 122.7 billion, up 35.7% and 53.1%, respectively, from the previous quarter. This is the first time in about five years that quarterly operating profit surpassed KRW 100 billion. The operating margin also reached 13.4%, marking a double-digit result for two consecutive quarters after 11.9% in the first quarter.

The financial indicators also showed improvement. As of the end of the first half, consolidated net borrowings stood at KRW 1.1952 trillion, down KRW 310.3 billion from the previous year, and the debt ratio fell to 128.5%. Project financing (PF) contingent liabilities also decreased by 33.4% compared to the end of last year, to KRW 1.2876 trillion.

A representative of IPARK Hyundai Development Company stated, “Stable revenue from large-scale projects and proactive improvements in our financial structure have enhanced both profitability and financial soundness. Based on our strengthened financial capacity, we plan to focus our efforts on securing high-quality urban redevelopment projects.”

IPARK Hyundai Development Company’s interest in the Sookdaeipgu Station area stems from its long-standing connection to Yongsan. The company has built up development experience around Yongsan through projects such as HDC I’Park Mall, the redevelopment of the former Yongsan Railroad Hospital site, and securing the construction rights for the Yongsan Maintenance Depot District 1. Should it win the contract for the Sookdaeipgu Station area, it will be able to extend its business base in conjunction with its existing development and operation assets.

In terms of design, the company is reportedly considering collaboration with the global architectural firm SMDP. SMDP has participated in the design of major high-end residential complexes in Korea, such as Nine One Hannam and Raemian One Bailey, and has worked with IPARK Hyundai Development Company on projects like Seoul One IPARK and Yongsan Maintenance Depot District 1.

A representative from IPARK Hyundai Development Company commented, “Yongsan is not only home to our headquarters but also serves as a key hub where our main operating assets are concentrated. Our strength lies in our accumulated experience in complex developments and integration of assets,” adding, “Through collaboration with SMDP, we aim to prepare cutting-edge design proposals that maximize the urban landscape of Yongsan, views of Namsan, and the value of the station area.”

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