Journalist

Lee Eun-byeon
  • Seoul Han River Rebuild Bids Heat Up as Builders Offer 150% LTV, Zero Member Payments
    Seoul Han River Rebuild Bids Heat Up as Builders Offer 150% LTV, Zero Member Payments South Korea’s urban redevelopment contracts this year are expected to total about 80 trillion won. As major projects along Seoul’s Han River — including Apgujeong, Yeouido, Mok-dong and Seongsu — move into full swing, construction firms are escalating bids with aggressive financing packages and high-end designs. According to the redevelopment industry on the 26th, Hyundai Engineering & Construction and DL E&C are locked in a fierce contest for the reconstruction of Apgujeong District 5 in Seoul’s Gangnam district. Hyundai E&C is highlighting premium features, including AI-based services and a panorama design aimed at maximizing river views. DL E&C has focused on financing, offering a fixed construction cost of 11.39 million won per 3.3 square meters and relocation loans with a loan-to-value ratio of 150%. The Seongsu area has also emerged as a key battleground. Seongsu District 4, seen as a centerpiece of new Han River redevelopment, is reshaping the competitive field through a re-bid. Daewoo E&C and Lotte Engineering & Construction have emphasized their funding capacity: Lotte offered relocation-loan support, while Daewoo proposed full responsibility for project financing and an interest rate set at 0.5 percentage points below the CD rate, a market benchmark. Seongsu District 4, however, has seen repeated disputes during the bidding process. After last year’s bid was canceled over allegations of missing documents and violations of promotion guidelines, the re-bid has also drawn debate over interest-rate cap conditions. Competition is also intense in Banpo. In the combined reconstruction of Sinbanpo complexes 19 and 25, Samsung C&T and POSCO E&C are vying for the contract. Samsung C&T has promoted an upscale strategy centered on building a “Raemian town,” while POSCO E&C has put forward a financing plan built around “zero member payments.” POSCO E&C said it would eliminate members’ contributions by paying 200 million won per household in advance as financial support and then maximizing revenue from general sales through post-completion sales. A POSCO E&C official said a general meeting to select the builder is set for May 30, adding that the company is pursuing a strategy that puts maximizing members’ interests first. The financing terms themselves are also drawing scrutiny. Critics say offers such as interest rates below the CD benchmark or relocation loans with 150% LTV could raise legal issues, tied to Article 132 of the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions. Interpretations differ over whether such terms amount to providing monetary benefits unrelated to construction work. Seo Jin-hyeong, a professor in the Department of Real Estate Law and Administration at Kwangwoon University, said the support does not involve handing over cash directly, making it unclear whether it constitutes a benefit to members. “It can work as a favorable condition, but it could also become subject to legal judgment later,” he said. Lee Eun-hyeong, a senior researcher at the Korea Construction Policy Research Institute, said areas drawing intense competition tend to have clear profitability or symbolic value, and builders generally present terms within bounds that avoid legal risk. He added that financial authorities could still raise concerns, but any decision would likely come after the fact, and that builders are pursuing an “all or nothing” strategy focused on core projects. 2026-04-24 16:33:22
  • Hyundai E&C Seeks Resident-Only On-Demand Shuttle Linking Apgujeong Redevelopment Zones
    Hyundai E&C Seeks Resident-Only On-Demand Shuttle Linking Apgujeong Redevelopment Zones Hyundai Engineering & Construction said April 24 it is pushing to introduce a resident-only demand-responsive transport, or DRT, service linking redevelopment Zones 2, 3 and 5 in Apgujeong-dong, Seoul’s Gangnam district. The company said the Apgujeong Hyundai area totals about 10,000 households, functioning like a small city. With key routes stretching about 1.4 kilometers from Zone 2 to Zones 3 and 5, it said a more efficient way to connect not only within the complexes but also to nearby destinations has been needed. DRT is a transit service that changes vehicle routes in real time based on user requests rather than fixed lines. Using demand data, it aims to cut waiting, detours and walking time. Hyundai E&C said it plans to analyze residents’ travel patterns to provide tailored mobility. In its own simulation, travel time between Apgujeong Zone 5 and Jamwon Hangang Park fell to about 10 to 14 minutes with DRT, from 20 to 45 minutes previously. It also projected sharp reductions in waiting and walking time, narrowing variations in travel time. The company said it would connect major hubs — including Apgujeong Station on Line 3, Apgujeong Rodeo Station on the Bundang Line and department stores — with the Han River waterfront and on-site community facilities in a single mobility system. In February, Hyundai E&C signed a business agreement with Hyundai Motor Co. to plan mobility-based services tailored to the construction industry and is developing a DRT model for apartment complexes. Demonstration data from Hyundai Motor’s on-demand service, Shucle, showed waiting time fell 71% and walking time 88%, the company said. “If connectivity is improved from on-site community spaces to the Han River, commercial facilities and transit hubs, the same distance can deliver a completely different daily experience,” a Hyundai E&C official said. “We will develop Apgujeong into a future-oriented living area where mobility is part of the design.” Hyundai E&C has secured the construction contract for Apgujeong Zone 2 and has been selected as the preferred bidder for Zone 3. In Zone 5, it is competing for the contract with DL E&C.* This article has been translated by AI. 2026-04-24 16:09:21
  • Seoul, Southern Gyeonggi Apartment Prices Rise as Gains Spread Beyond Gangnam
    Seoul, Southern Gyeonggi Apartment Prices Rise as Gains Spread Beyond Gangnam South Korea’s apartment market continued a mild uptrend, with gains spreading in areas with strong access to Seoul’s Gangnam district — notably southern Gyeonggi Province — and into Seoul’s outer districts, highlighting widening gaps by location. KB Real Estate said in its weekly report released April 23 that nationwide apartment sale prices rose 0.07% in the third week of April, while jeonse (lump-sum deposit) lease prices increased 0.11%. In the Seoul metropolitan area, prices rose in Seoul (0.22%) and Gyeonggi (0.11%), while Incheon was flat. Within Seoul, Seongdong District (0.51%) and Seongbuk District (0.44%) posted gains, but Gangnam District (-0.08%) and Seocho District (-0.01%) fell, showing sharp differences by neighborhood. In Gyeonggi, the southern area led gains, supported by proximity to Gangnam and shorter commutes. Seongnam’s Sujeong District rose 0.64%, followed by Hanam (0.55%), Gwangmyeong (0.42%), Seongnam’s Jungwon District (0.38%) and Anyang’s Dongan District (0.37%). Some outlying areas declined, including Goyang’s Ilsandong District (-0.09%), Icheon (-0.07%) and Pyeongtaek (-0.06%). Regional markets were mixed: Ulsan (0.08%) and Daejeon (0.01%) rose, while Daegu (-0.01%), Busan (-0.02%) and Gwangju (-0.09%) fell. Busan turned down after 27 weeks of gains. Jeonse prices also edged higher nationwide. In the capital region, jeonse rose in Seoul (0.20%), Gyeonggi (0.19%) and Incheon (0.10%), with modest increases elsewhere as well. Seoul’s buyer-seller sentiment index climbed to 73.0, up 4.8 points from the previous week, rebounding after a one-week dip. The index has been volatile, suggesting both buyers and sellers remain cautious. A similar pattern appeared in data from the Korea Real Estate Board, which said April 23 that Seoul apartment sale prices rose 0.15% in the third week of April, accelerating from 0.10% a week earlier. In Seoul, gains were led by outer districts with many mid- to lower-priced apartments. Seongbuk (0.27%) rose mainly in Gireum and Hawolgok; Dongdaemun (0.25%) in Dapsimni and Hwigyeong; Gangbuk (0.24%) in large complexes in Mia and Beon; Gwangjin (0.22%) in Guui and Gwangjang; and Nowon (0.22%) near stations in Wolgye and Junggye. Gangseo (0.31%) rose mainly in Gayang and Yeomchang, and Gwanak (0.28%) in large complexes in Bongcheon and Sillim. Songpa gained 0.07%, ending an eight-week slide. Gangnam (-0.06%) and Seocho (-0.03%) continued to fall, underscoring diverging trends between core and outer areas. Across the capital region, Gyeonggi rose 0.07%. Gains were led by Hwaseong’s Dongtan area (0.41%), Gwangmyeong (0.34%), Suwon’s Yeongtong District (0.31%), Guri (0.29%) and Hanam (0.29%), aligning the uptrend in Seoul’s outskirts with southern Gyeonggi. Outside the capital region, weakness persisted. The five major metropolitan cities fell 0.01%, shifting from flat to negative, and Sejong (-0.07%) also turned down after rising. Nam Hyeok-woo of Woori Bank’s real estate research institute said sellers in Seoul’s mid-priced areas, which had shown strength in the first half of the year, moved to buy mainly distressed listings in Seongdong, Gwangjin, Dongjak and Mapo districts. He said many distressed listings in popular parts of Songpa were absorbed, pushing demand toward less popular, cheaper areas, with transactions extending into nearby Gangdong. Nam added that the relatively firm price trend in Seoul’s mid- to lower-tier areas is spreading in part to nearby outlying areas of Gyeonggi, and that the current “price catch-up” could gradually expand further into Gyeonggi’s outskirts. * This article has been translated by AI. 2026-04-24 15:21:20
  • Korea Land Trust Pulls Out of Bundang Yangji Village Redevelopment Bid, Citing Fairness Concerns
    Korea Land Trust Pulls Out of Bundang Yangji Village Redevelopment Bid, Citing Fairness Concerns Korea Land Trust said it will not participate in the bid to select a preliminary project operator for the integrated redevelopment of Yangji Village in Bundang, widening debate over the fairness of the process and the adequacy of procedures. The company said on the 24th that it would not take part in the tender for the project’s preliminary operator selection. The Yangji Village integrated redevelopment is a large project covering six complexes — including Hanyang, Kumho and Cheonggu — totaling 4,392 households. The plan calls for rebuilding into up to 37-story apartments with 6,839 households. Korea Land Trust had previously been named preferred bidder, receiving preliminary operator status and moving the project forward. Korea Land Trust said its decision stems from concerns about the overall bidding guidelines, citing three issues it said make it difficult to ensure fairness and stability: the balance of evaluation criteria, procedural representation and how rights and interests would be handled. On evaluation criteria, the company said the structure gives full points only to firms whose corporate group has total assets of at least 50 trillion won, adding that only a limited number of trust companies meet that requirement and that competitive neutrality could be undermined. It also said permitting and approval track records — which it described as critical to redevelopment success — were effectively excluded from scoring. A selection method focused on headline indicators such as asset size would make it difficult to protect owners’ property rights, it said. The company also questioned procedural legitimacy, saying meaningful participation and consent were not secured from representatives of Cheonggu 2 Complex and owners at 32 Sunae-dong, key members of the integrated project. It said bidding guidelines finalized while representatives of major complexes were excluded would be hard to justify procedurally. Korea Land Trust cited unresolved rights issues as another core concern. It said Yangji Village has a complex structure of shared land rights across complexes and alliances, requiring clear standards for separate settlement and principles for allocating rights from the outset. Because the bidding guidelines do not reflect specific operating principles, it said, disputes could arise later at the management and disposition planning stage. If disputes drag on, it added, higher financing costs could increase owners’ contributions. Korea Land Trust said it agreed to terminate an existing memorandum of understanding to expand owners’ choices, but concluded the final bid structure was difficult to trust. Without fair evaluation criteria and transparent procedures, it said, project stability also cannot be assured. Industry officials said Korea Land Trust’s withdrawal, as a leading candidate to serve as project operator, is expected to affect momentum for the Yangji Village redevelopment and reshape the bidding landscape.* This article has been translated by AI. 2026-04-24 14:45:16
  • Hoban Construction, Upstage to Build AI Platform Integrating Data Across Construction Process
    Hoban Construction, Upstage to Build AI Platform Integrating Data Across Construction Process Hoban Construction said it is partnering with global AI company Upstage to build an AI platform that integrates data generated across the construction process. The company said it signed a memorandum of understanding with Upstage on April 23 at its headquarters in Seoul’s Seocho-gu to pursue development of an “integrated AI agent platform.” Hoban Construction said the platform will consolidate and manage data produced in design, construction, quality and safety. It plans to apply AI to areas such as document drafting and management, data analysis and reporting systems to improve efficiency. Under the agreement, Hoban Construction will oversee platform development, provide data and work processes, and run pilot projects. The company said it aims to build an intelligent workflow system based on field-centered data to deliver practical productivity gains. Upstage will develop and supply AI models based on its in-house large language model, Solar. The company said it will advance industry-tailored AI through document-processing technology, fine-tuning models for construction and real estate, and design drawing analysis. Hoban Construction said it will first validate the platform in day-to-day operations, then expand it across Hoban Group. It plans to use accumulated data operations experience and AI use cases as shared group assets to strengthen digital transformation capabilities. A Hoban Construction official said the company will “organically connect data and work processes around the integrated AI agent platform to drive real workplace innovation and productivity gains,” and will expand “a proven AI utilization system” across the group to keep strengthening its AI transition foundation.* This article has been translated by AI. 2026-04-24 09:44:07
  • DL E&C Offers Fixed Construction Cost, 150% LTV for Seoul’s Apgujeong 5 Redevelopment Bid
    DL E&C Offers Fixed Construction Cost, 150% LTV for Seoul’s Apgujeong 5 Redevelopment Bid DL E&C has unveiled its proposal for the Apgujeong District 5 redevelopment project in Seoul, pitching a fixed construction price and aggressive financing terms under its high-end ACRO brand as it steps up its bid to win the contract. The company said April 23 it is offering the “ACRO Apgujeong” plan for the project in Gangnam-gu. The complex would span six basement levels to 68 stories above ground across eight buildings, with 1,397 households. The site is considered the largest redevelopment project in the broader Apgujeong area. DL E&C proposed a fixed construction cost of 11.39 million won per 3.3 square meters. The company said that is more than 1 million won lower than the association’s planned cost, and that the builder would absorb additional expenses tied to inflation. The move is aimed at reducing uncertainty as disputes over construction costs have spread across the redevelopment market. The financing package includes a loan-to-value ratio of 150% for relocation loans, and a deferral of members’ payments for up to seven years after move-in. DL E&C also proposed a 57-month construction period, four months shorter than Apgujeong District 2, in a bid to reduce financing costs. To strengthen profitability in a district with limited general-sale units, DL E&C emphasized maximizing retail revenue. It said it would expand retail space by 1,696 pyeong to a total of 5,069 pyeong and cover the full construction cost for the retail portion. The company projected that retail sales profit per association member would rise by about 660 million won. DL E&C also said it would increase total usable residential area by 1,535 pyeong to enhance asset value. A DL E&C official said, “Apgujeong is a symbolic area at the pinnacle of high-end housing in Korea,” adding, “We have concentrated all of the company’s capabilities to deliver a top-level complex.” The official said the company presented “terms rarely seen” centered on fixed conditions that minimize members’ burdens and project risk, and pledged to complete Apgujeong District 5 as “Korea’s best high-end residential complex.” Apgujeong District 5 is currently in the process of selecting a builder. DL E&C said it plans to present additional product design proposals following the release of its business terms.* This article has been translated by AI. 2026-04-23 16:44:28
  • Seoul Studio Apartment Rent Averages 710,000 Won as Monthly Leases Rise, Jeonse Dips
    Seoul Studio Apartment Rent Averages 710,000 Won as Monthly Leases Rise, Jeonse Dips In March, Seoul’s studio rental market showed mixed movement, with monthly rents rising while jeonse deposits edged down. Real estate information platform Dabang said it released its “March Dabang Yeojido” report on the rental and jeonse levels for studio units in Seoul’s multi-family housing — row houses and villas with exclusive floor space of 33 square meters (355 square feet) or less — based on March data. Using a 10 million won deposit as a benchmark, the average monthly rent for a Seoul studio was 710,000 won, up 40,000 won (5.2%) from the previous month, Dabang said. The average jeonse deposit was 213.86 million won, down 830,000 won (0.4%), suggesting the earlier rise has slowed. “Dabang Yeojido” compares each district’s average monthly rent and jeonse deposit with the Seoul average (set at 100%), using transaction prices reported to the Ministry of Land, Infrastructure and Transport. Readings above 100% indicate prices higher than the citywide average. By district, monthly rents were strongest in the Gangnam area and major central neighborhoods. Gangnam-gu was the highest at 141% of the Seoul average, followed by Seocho-gu (122%), Seongdong-gu (122%), Yongsan-gu (118%) and Jungnang-gu (116%). Including Gwangjin-gu and Dongdaemun-gu (108%) and Gangseo-gu and Yeongdeungpo-gu (101%), nine districts were above the city average. For jeonse deposits, Seocho-gu ranked highest at 125%, followed by Jung-gu (120%), Gangnam-gu (119%), Gwangjin-gu (113%), Dongjak-gu (112%) and Yongsan-gu (110%). Including Yeongdeungpo-gu (106%), Mapo-gu (104%) and Dongdaemun-gu (101%), nine districts were above average. Dabang said its March figures cover studio transactions in Seoul and calculate monthly rents using a 10 million won deposit after applying a rent-to-jeonse conversion rate, while jeonse figures are based on all jeonse transactions. Monthly rent data were compiled from deals with deposits under 100 million won.* This article has been translated by AI. 2026-04-23 15:52:35
  • Lee Jae-myung housing policy faces doubts as permits fall and non-apartment supply dries up
    Lee Jae-myung housing policy faces doubts as permits fall and non-apartment supply dries up With the Lee Jae-myung government nearing its first anniversary, questions are growing over whether its core real estate approach — expanding housing supply — can deliver results. Critics say the supply structure itself is weakening, with private-sector permits cut roughly in half and construction of non-apartment housing such as multi-family and multiplex homes effectively halted. Democratic Party lawmaker Lee Yeon-hee held a forum at the National Assembly Members’ Office Building on the 23rd titled “Normalizing Real Estate, Asking a New Path to Housing Stability,” saying there is a need to assess the government’s real estate and housing policies over the past year and set a new direction to stabilize housing. Lee said real estate policy is a top task for every administration and that expanding supply is central in a volatile market. She said addressing supply shortages from the previous administration is the starting point for market stability. Lee added that the government’s plan to supply 1.35 million homes will take time to show results, with visible effects expected in the middle to later part of its term. At the forum, Kwon Dae-jung, a chair professor at Hansung University, said the 1.35 million-home plan lacks realism. He said supply in Seoul amounts to only about 27,000 households, and noted that a previously presented plan to supply 300,000 homes has, in some cases, not even reached the presale stage for nearly 10 years. “The biggest problem is the absence of a short-term supply policy,” he said. Kwon called for a more flexible approach, including revitalizing the non-apartment market and exempting small homes below a certain size from regulations. On regulations for owners of multiple homes, Kwon said applying the same rules to “livelihood” multi-home owners has limits. He called for easing financial regulations for young people and those without homes, and for more selective regulation. He also urged expanding supply models such as rent-to-own arrangements. Byun Chang-heum, a former minister of land, infrastructure and transport, said the housing market is showing both a “supply cliff” and regional imbalance, underscoring the need for a policy shift. Byun said private-sector permits fell from 623,000 homes in 2016 to about 304,000 in 2025, and that supply of non-apartment housing such as multi-family and multiplex homes has effectively stopped. He said Korea Land and Housing Corp., known as LH, is partially filling the gap but not enough. Byun said home prices in Seoul have surged while provincial areas remain sluggish, widening asset gaps and a sense of relative deprivation. He also pointed to limits in existing supply methods. Securing unused land has reached its limits due to complaints and practical constraints, he said, while redevelopment and reconstruction produce limited net increases and leave unresolved issues over resettling original residents. He added that development gains are structured to concentrate on buyers of newly sold units. As alternatives, Byun proposed deregulation and institutional changes. He called for easing floor-area ratio and building rules to enable mid-rise, high-density development, and for designating areas near transit hubs as “housing supply promotion zones” with incentives. He also urged better use of semi-industrial zones and looser standards for multi-family and multiplex housing. Byun said units secured through floor-area incentives should be used to encourage resettlement of original residents, and that a supply model with both public and private participation is needed. He said expanding supply should be pursued alongside inclusiveness and regional balance. 2026-04-23 15:15:48
  • Seoul Reviews Three Development Plans for Guro, Jungnang and Gangdong Areas
    Seoul Reviews Three Development Plans for Guro, Jungnang and Gangdong Areas Seoul is moving to update city planning rules to improve housing conditions and expand housing supply, placing three urban development items on the agenda for areas in Guro, Jungnang and Gangdong districts. The city said it reviewed the three proposals at its seventh joint City Planning and Architecture Committee meeting held the previous day. In Guro District, the committee discussed changes to the district unit plan and a detailed development plan for a special planning zone covering 5,623 square meters near 108-1, Gung-dong. The plan is tied to Korea Land and Housing Corp.’s purchase-and-lease public rental housing program. It keeps the site classified as a second-class general residential area (seven-story standard) while increasing development intensity. The floor-area ratio is set at 280%, with building height capped at 40 meters, and construction is planned from one basement level to 13 stories above ground. In Jungnang District, the committee reviewed designation of a district unit planning area and a detailed development plan for 2,870.5 square meters near 360-1, Mangu-dong, to advance a co-living housing project. The site was upgraded from a third-class general residential area to a semi-residential area, and a city-designated intercity bus terminal facility was removed. The changes allow mixed-use development combining housing and commercial functions, which the city expects will help increase housing supply in the urban core. In Gangdong District, the committee reviewed revisions to the district unit planning area and plan for 388,485 square meters near 451, Seongnae-dong, along the Gangdong-daero corridor. Discussions included the maximum development scale, permitted building uses, floor-area ratio and height limits, as well as creating one new special planning zone. Seoul said the changes are intended to guide more systematic development and reshape the area’s spatial structure along Gangdong-daero.* This article has been translated by AI. 2026-04-23 10:06:44
  • DL E&C to Launch Acro River Sky Apartments in Seoul’s Noryangjin New Town in May
    DL E&C to Launch Acro River Sky Apartments in Seoul’s Noryangjin New Town in May DL E&C will introduce its high-end apartment brand in Seoul’s Dongjak district with Acro River Sky in Noryangjin New Town, citing transit access and established education and daily-life infrastructure. The company said on the 14th it plans to begin sales in May for the Noryangjin 8 redevelopment promotion zone housing reconstruction project, located around 23-61, Daebang-dong, Dongjak-gu, Seoul. The complex will have 10 buildings ranging from four basement levels to 29 stories above ground, with 987 units in total. Of those, 285 units will be offered in general sales. Units will range from 36 to 140 square meters in exclusive-use area, covering small to large layouts. Noryangjin New Town is a large-scale redevelopment area planned across eight promotion zones. Once development is completed, it is expected to become a new residential district of about 9,200 households. Acro River Sky is within walking distance of Noryangjin Station, a transfer point for Seoul Subway Lines 1 and 9. For schools, the site borders Yeonghwa Elementary School, allowing for a safer walk to class. Yeongdeungpo Middle School, Yeongdeungpo High School, Sungui Girls’ Middle School and Sungui Girls’ High School are also within walking distance. Nearby parks reachable on foot include Yeouido Saetgang Ecological Park, Sayuksin Park, Nodeulnaru Park and Daebang Park, the company said. DL E&C said it plans a distinctive exterior design with three-dimensional finishes and upgraded views. Interiors will emphasize storage, including dressing rooms and pantries, and some unit types will use a four-bay, flat layout to improve space efficiency. Community facilities will include “Club Acro,” featuring fitness, Pilates, golf facilities and a sauna. The complex will also offer a kids lounge, study room and education lounge, along with premium spaces such as a sky lounge. A housing exhibition hall for Acro River Sky is planned near Maebong Station on Seoul Subway Line 3, at 2741 Nambusunhwan-ro, Gangnam-gu, Seoul.* This article has been translated by AI. 2026-04-23 05:05:10