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"5 Years and 10 Months from Award to Groundbreaking": Analyzing the Speed of Urban Renewal Projects in Seoul by Top 10 Construction Companies

[비즈한국] How long does it take from selecting a contractor to breaking ground in Seoul's reconstruction and redevelopment projects? A comprehensive analysis of 29 Seoul urban renewal sites that began construction in the last three years shows that it took an average of 5 years and 10 months from the date of contractor selection to the start of construction. By duration, 17 sites took between 3 and 6 years, and Samsung C&T028260 had the shortest average duration at 25 months.

According to Bizhankook's analysis of Seoul City's urban renewal progress data, 29 urban renewal sites in Seoul (excluding urban maintenance types) began construction between 2023 and 2025. On average, it took 5 years and 10 months from the contractor selection date to groundbreaking. By duration, 2 sites took less than 3 years, 17 sites took between 3 and 6 years, 7 sites took between 6 and 9 years, and 3 sites took over 9 years. The median time across all sites was 4 years and 11 months, which is shorter than the average.

The top 10 construction companies began construction at 26 urban renewal sites in Seoul over the past three years. This figure accounts for 90% of all Seoul urban renewal sites that broke ground during this period. The projects (including joint contracts) undertaken by major firms over the last three years include: Samsung C&T (3), Hyundai E&C000720 (4), Daewoo E&C047040 (2), DL E&C375500 (5), GS E&C006360 (4), Hyundai Engineering (2), POSCO E&C (2), Lotte E&C (2), SK Ecoplant (3), and HDC Hyundai Development Company (2). Additionally, mid-sized firms Kumho E&C, Hanshin Engineering & Construction, and Jungheung Construction broke ground in Dobong 2-gu, Siheung-dong Hyundai, and Wolgye-dong, respectively.

The top 3 urban renewal sites with the shortest time from contractor selection to construction were all handled by Samsung C&T. These include Banghwa Zone 6 in Gangseo-gu (6 months, broke ground last September), Banpo Jugong 1st Complex, 3rd Zone in Seocho-gu (33 months, broke ground in March 2023), and Dogok Samho in Gangnam-gu (36 months, broke ground in February 2024), all within 3 years (average 25 months). In the case of Banghwa Zone 6, the original contractor was replaced by Samsung C&T following disputes over construction cost increases. By the time the contractor was replaced, resident relocation and demolition were already complete.

A Samsung C&T official stated, "While procedures such as contractor selection, project implementation authorization, and management and disposal authorization in urban renewal projects are the role of the client (the union), the contractor's capabilities are crucial for a smooth process." The official added, "We have shortened the time to construction through various methods, such as facilitating resident relocation using our accumulated project management know-how and financing based on the industry's highest credit rating."

The average time from contractor selection to groundbreaking over the past three years by company is: Samsung C&T 25 months (6–36 months), Hyundai E&C 61 months (39–78 months), Daewoo E&C 61 months (58–64 months), DL E&C 61 months (41–88 months), GS E&C 112 months (42–206 months), Hyundai Engineering 71 months (64–78 months), POSCO E&C 48 months (37–59 months), Lotte E&C 75 months (66–83 months), SK Ecoplant 154 months (90–246 months), and HDC Hyundai Development Company 51 months (41–61 months).

SK Ecoplant and GS E&C showed higher averages due to three specific projects with exceptionally long lead times. The Yeonhui Zone 1 redevelopment in Seodaemun-gu, awarded to SK Ecoplant in April 2005, did not break ground until October last year, 246 months later. The Yongdap-dong redevelopment in Seongdong-gu, awarded to GS E&C in August 2006, broke ground in October 2023, 206 months later. Noryangjin Zone 6 in Dongjak-gu, jointly awarded to both companies in December 2014, took 126 months to reach groundbreaking in June last year.

An official from SK Ecoplant noted, "There are projects where construction was delayed due to internal conflicts causing decision-making gridlock within the union or the time taken to resolve project feasibility issues."

The time taken by two major construction companies working on adjacent complexes is also noteworthy. The Banpo Jugong 1st Complex, 1st, 2nd, and 4th Zones, awarded to Hyundai E&C in September 2017, took 78 months to break ground in March 2024. Conversely, the Banpo Jugong 1st Complex, 3rd Zone, located across the street, took 33 months, having been awarded to Samsung C&T in May 2020 and breaking ground in March 2023. This marks a difference of approximately 45 months. During the bidding process for the 3rd Zone, Samsung C&T pledged to shorten the overall project duration by over a year compared to competitors through rapid groundbreaking and faster construction.