[비즈한국] As observations suggest that the urban redevelopment market will expand to 80 trillion won this year, the battle for contracts among major construction companies over key Seoul redevelopment projects is becoming visible. Procedures to select contractors for multi-trillion won projects are being scheduled one after another in areas such as the Apgujeong Apartment District, Yeouido Sibeom Apartments, and the Seongsu Strategic Redevelopment Zone. However, given that most redevelopment projects that selected contractors last year failed to achieve competitive bidding, there is also an assessment that it remains to be seen how many actual competitive bidding wars will materialize.
According to the industry, the urban redevelopment market is projected to reach 80 trillion won this year. This is an increase of more than 30 trillion won compared to the 48.6654 trillion won in contracts secured by the top 10 construction firms last year. With about 70 locations in Seoul expected to begin contractor selection this year, interest in competitive bidding among major construction companies is rising.
The biggest battleground this year is considered to be the Apgujeong Apartment District in Gangnam-gu, Seoul. Starting with Apgujeong Zone 4 this month, Zone 5 is planned to issue bid notices in the first half of the year, followed by Zone 3 in the second half. Zone 4, which will be the first to select a contractor, has a construction cost of around 2 trillion won, and the outcome is expected to influence the competition structure for the remaining zones. Currently, Samsung C&T028260, Hyundai Engineering & Construction000720, DL E&C375500, and GS E&C006360 are showing interest in the project. Zone 2, the largest project last year (2.7489 trillion won), was secured by Hyundai E&C through a private contract.
In particular, there is keen interest in whether a head-to-head battle between the two major construction giants will take place in Apgujeong. Previously, Samsung C&T expressed interest in bidding for the Apgujeong Zone 2 contract last year but abstained, citing unfair bidding guidelines from the union. Samsung C&T and Hyundai E&C clashed over the redevelopment contract for Hannam Zone 4 in Yongsan-gu, Seoul, last January. A representative for a major construction firm stated, "Apgujeong Zone 4, which will be the first to select a contractor this year, is drawing attention as the structure could range from a two-way race to a four-way competition between major firms."
A major event is also expected at Yeouido Sibeom Apartments in Yeongdeungpo-gu, Seoul. Currently the largest complex in Yeouido with 1,584 households, the Sibeom Apartments are set to be reborn as a large-scale complex of approximately 2,500 households through a trust-based reconstruction method. Samsung C&T, Hyundai E&C, and Daewoo E&C047040, which have already secured contracts in Yeouido, have been eyeing this complex for a long time. Samsung C&T secured the Daekyo Apartment contract (798.7 billion won) in November last year, Hyundai E&C the Hanyang Apartment contract (774 billion won) in March 2024, and Daewoo E&C the Gongjak Apartment contract (570.4 billion won) in December 2023.
The Seongsu Strategic Redevelopment Zone is emerging as a battleground in the Gangbuk area of Seoul. All four zones plan to select contractors this year, and signs of a battle are appearing in Zones 1 and 4, where bidding is currently in progress. Hyundai E&C and GS E&C are currently showing interest in Seongsu Zone 1, the largest in the area with a construction cost of 2.154 trillion won, while Daewoo E&C and Lotte E&C are expressing intent to bid for Seongsu Zone 4, with a cost of 1.3628 trillion won. Seongsu Zones 1 and 4, which issued bid notices last December, will close their bidding applications on the 20th and 9th of next month, respectively.
Whether the battles between major construction firms will materialize remains uncertain. Of the 74 redevelopment projects won by the top 10 construction firms last year, 70 were through private contracts. The only sites where competitive bidding took place were the Hannam Zone 4 redevelopment (1.5695 trillion won) and Gaepo Woosung 7th reconstruction (675.7 billion won) won by Samsung C&T; the Eunhaeng Jugong reconstruction in Seongnam, Gyeonggi Province (1.2972 trillion won) won by POSCO E&C; and the Jeongbichang Front Zone 1 redevelopment (924.4 billion won) won by HDC Hyundai Development Company. While competitive bidding is the principle for selecting redevelopment contractors, private contracts are permitted if bidding repeatedly fails.
Another official from a major construction firm said, "Projects considered 'big game' this year, such as Apgujeong or Seongsu, have high risks because the bid deposits alone reach 100 billion won and the project scale is massive, which also impacts the success or failure of securing additional nearby projects." He added, "If a company is not confident of victory based on bidding guidelines or member sentiment, they may avoid bidding altogether."
Meanwhile, the cumulative contract value for urban redevelopment by the top 10 construction firms last year reached 48.6654 trillion won, an increase of 20.7953 trillion won (75%) compared to the previous year. The number of projects secured (including joint contracts) rose from 63 to 74, an increase of 11 (17%). This means the average value per project secured by the top 10 firms grew from 442.3 billion won in 2024 to 657.6 billion won in 2025, an increase of 215.3 billion won (49%). With the exception of SK Ecoplant (-25%) and Hyundai Engineering (-100%), the redevelopment contract values for all top 10 firms increased.