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"All-in on Winning the Reconstruction Bid": Samsung C&T Establishes Dedicated Apgujeong Office

[비즈한국] As the selection of a contractor for the Apgujeong District 2 reconstruction project in Gangnam-gu, Seoul—considered the biggest prize in urban renewal projects for the second half of this year—approaches in three months, it has been confirmed through Bizhankook’s reporting that Samsung C&T028260 has established an Apgujeong Office under its Housing Business Division. The office oversees the entire Apgujeong apartment district, including District 2, marking the first time Samsung C&T has opened an office dedicated to a single district.

According to the construction industry, Samsung C&T’s Construction Division established the Apgujeong Office under its Housing Business Division on the 1st. The office’s jurisdiction covers the entire Apgujeong apartment district, including Apgujeong District 2. Samsung C&T has reportedly appointed the former leader of its in-house housing strategy task force (TF), who led the 10-year integrated reconstruction of the Sinbanpo 3rd and Gyeongnam (Raemian One Bailey) apartments, as the new office head, and has moved veteran urban renewal staff members to the front lines at this office.

The establishment of the Samsung C&T Apgujeong Office is exceptional when considering the company's existing organizational structure. Currently, Samsung C&T maintains offices under its Housing Business Division, including the Seocho Office (Seoul Southwest), Yongsan Office (Seoul North), Gangnam Office (Seoul Southeast), Busan Office (Yeongnam), and a Remodeling Office. These offices typically oversee projects spanning multiple autonomous districts or broad living areas; this is the first time an office has been created specifically for a single apartment district.

The newly established Samsung C&T Apgujeong Office is located in a building that houses a recently opened promotional center for Samsung C&T’s housing brand. On the 6th of last month, Samsung C&T opened "S Lounge," a housing brand promotional center near Apgujeong Station in Gangnam-gu, Seoul. This six-story building showcases the company’s vision and the future design of its residential complexes through videos and presentations. Samsung C&T plans to use this space to formulate winning strategies for the Apgujeong District 2 bid ahead of the contractor selection process.

An official in the construction industry commented, "Typically, major construction companies separate their urban renewal bidding departments from their management departments, handing off projects to the latter after winning a bid. However, Samsung C&T handles the entire lifecycle of an urban renewal project—from bidding to groundbreaking, sales, occupancy, and settlement—within a single office. The establishment of the Apgujeong Office demonstrates the seriousness with which Samsung C&T is approaching the Apgujeong reconstruction project."

The Apgujeong apartment district is considered the biggest project in Korea's reconstruction market. In the 1970s, the Seoul Metropolitan Government created the Apgujeong district along the Han River to boost housing supply. Since then, the area has been densely packed with Apgujeong Hyundai (1st–14th phases), Miseong (1st–2nd phases), and Hanyang (1st–8th phases) apartments. With most of these buildings exceeding 40 years of age, the area is currently divided into six sectors for reconstruction. In September, Apgujeong District 2 (Hyundai 9th, 11th, 12th, and Shinhundae), with a total project cost of 2.4 trillion won, plans to become the first in the area to select a contractor.

Samsung C&T has been actively pursuing the Apgujeong District 2 contract. Following the opening of its brand promotional center near the site on the 6th of last month, the company announced on the 30th of the same month that it had signed a strategic partnership with five major domestic commercial banks to secure project financing for District 2. Furthermore, the company has partnered with "Foster + Partners," the world-renowned British architectural firm led by master architect Norman Foster, to develop alternative designs for the District 2 complex. The plan is to maximize Han River views and optimize residential buildings and primary circulation paths based on the original design.

Meanwhile, competitor Hyundai E&C000720 is also actively working to win the contract for Apgujeong District 2. After filing a trademark for the "Apgujeong Hyundai" apartment complex name in March, Hyundai E&C expanded its existing reconstruction TF into the "Apgujeong Reconstruction Sales Team." On the 29th of last month, the company announced it had signed a memorandum of understanding (MOU) with its primary bank, Hana Bank, regarding the Apgujeong District 2 reconstruction project, signaling an expansion of its financial cooperation (Related article: [Exclusive] Hyundai E&C Files Trademark for 'Apgujeong Hyundai,' Putting Its Pride on the Line for Reconstruction Bid).