[비즈한국] Hyundai E&C000720 and DL E&C375500 are set to face off for the construction rights of the Apgujeong District 5 reconstruction project in Gangnam-gu, Seoul. This marks the first time in 6 years that both companies have competed in an urban renewal project bid since the Hannam District 3 redevelopment project in 2020. As the Apgujeong District 3 and Mok-dong Complex 6 biddings, which closed on the same day, ended in failed bids due to only single participants, Apgujeong District 5 has emerged as the key battleground for this year's urban renewal project tenders.
According to the construction industry, Hyundai E&C and DL E&C participated in the bid for the Apgujeong District 5 reconstruction project that closed on the 10th. Both companies secured the competitive bidding process by submitting the required 80 billion KRW in bid deposits and their official project proposals. The Apgujeong District 5 project involves the construction of 8 apartment buildings (1,397 units) reaching up to 68 floors. The construction cost is 1.496 trillion KRW, equivalent to 12.4 million KRW per 3.3㎡. The association plans to hold a joint information session for union members on the 16th of next month, followed by the general meeting for contractor selection on the 30th of the same month.
This is the first time the two companies have competed in an urban renewal project since the 2020 Hannam District 3 redevelopment. At that time, Hyundai E&C was selected as the contractor after defeating DL E&C (formerly Daelim Industrial) in a final vote. The difference was a mere 151 votes, with a vote percentage gap of only 6 percentage points. Prior to that, in the 2016 Bangbae District 6 reconstruction project where both companies competed, DL E&C defeated Hyundai E&C by 253 votes (57% points) to win the contract. With their head-to-head records split in recent years, this is their first face-off in 6 years.
Under-the-table competition was intense leading up to the bid. Before the Apgujeong District 5 bid, Hyundai E&C partnered with Hanwha to present a complex development concept linking Apgujeong District 5 with the Galleria Department Store and Apgujeong Rodeo Station, while pledging to attract asset management specialty branches from 8 financial firms to Apgujeong Districts 3 and 5. DL E&C signed financial agreements with 10 financial institutions to support the Apgujeong District 5 project and unveiled plans for collaboration with global firms such as Arcadis, Arup, and Doka. They also emphasized their commitment to focusing solely on District 5 rather than other districts in Apgujeong.
Both companies also participated in other urban renewal bids on the same day. Hyundai E&C participated as a sole bidder for the Apgujeong District 3 reconstruction in Gangnam-gu, Seoul, while DL E&C was the sole bidder for the Mok-dong Complex 6 reconstruction in Yangcheon-gu, Seoul. The Apgujeong District 3 project involves a total construction cost of 5.561 trillion KRW with a bid deposit alone of 200 billion KRW. The Mok-dong Complex 6 project, bid on by DL E&C, is also a large-scale renewal project with a total construction cost of 1.2123 trillion KRW and a bid deposit of 70 billion KRW. Both projects resulted in failed bids as no other construction companies appeared by the deadline.
Meanwhile, the landscape for contractors in Apgujeong, considered this year's largest market for urban renewal, is gradually becoming clear. Hyundai E&C secured the contract for Apgujeong District 2 through a private contract last September, with a construction cost of 2.7489 trillion KRW. For Apgujeong District 4, following Samsung C&T028260's sole participation in the first round of bidding last month, only Samsung C&T attended the re-bidding site information session, increasing the likelihood of a private contract. The construction cost for that project is 2.1154 trillion KRW. Next month, the general meetings for contractor selection are scheduled for the 23rd for District 4, the 25th for District 3, and the 30th for District 5.