As the urban redevelopment bidding landscape shifts, major construction firms like Hyundai Engineering & Construction, GS Engineering & Construction, and Samsung C&T have dominated the first half of the year. However, competition is expected to intensify in the second half, particularly around the Seong-su and Mok-dong areas. Firms that faced setbacks in the first half or only recently secured contracts are poised to make a comeback in the bidding for key redevelopment sites in Seoul.
According to industry sources, the most competitive areas for the second half are the Seong-su Strategic Redevelopment Zone District 2 in Seongdong-gu and the follow-up projects in Mok-dong New Town in Yangcheon-gu. The Seong-su District 2 project aims to develop a residential complex with 2,381 units, featuring five underground levels and a maximum height of 65 stories. The total project cost is estimated to be around 2 trillion won, and its prime location along the Han River is expected to fuel fierce competition among construction brands.
Mok-dong is also set to be a central stage for redevelopment projects in the second half. DL E&C has secured the construction rights for the Mok-dong District 6 reconstruction project, valued at 1.2868 trillion won, marking the first selection of a construction firm for the Mok-dong New Town redevelopment. DL E&C has positioned itself in the Mok-dong reconstruction market with its high-end brand, 'Acro.'
The bidding for follow-up projects is gaining momentum. The Mok-dong District 10 project is a large-scale redevelopment site aiming to reconstruct over 4,200 units, with construction costs estimated at 2.6 trillion won. Six companies, including Hyundai Engineering & Construction, Daewoo Engineering & Construction, and POSCO E&C, attended the site briefing. The site briefing for Mok-dong District 13 also attracted attention from major firms like Samsung C&T, DL E&C, Daewoo Engineering & Construction, and IPARK Hyundai Industrial Development, indicating strong interest in the upcoming bidding process.
IPARK Hyundai Industrial Development, which experienced a lull in contract acquisitions during the first half, is now one of the most watched construction firms for the second half. The company is expected to participate in projects like Seong-su District 2 and Mok-dong Districts 11 and 13. Following its name change, IPARK is emphasizing its brand identity, making success in Seoul's key redevelopment projects significant beyond mere performance metrics. Particularly, winning the Seong-su District 2 project could greatly enhance its brand image due to its status as a luxury residential area along the Han River.
DL E&C aims to leverage its success in securing the Mok-dong District 6 project to achieve additional results in the second half. Having established itself as the first construction firm in Mok-dong New Town, the company is now focused on achieving further success in the Seong-su District 2 and follow-up projects in Mok-dong.
Daewoo Engineering & Construction is also considered a major potential competitor in the Mok-dong follow-up project bidding. The firm is targeting the Mok-dong reconstruction market with its high-end brand, 'Prugio Summit.' Recently, Daewoo established a brand experience space in Mok-dong and is actively participating in the bidding for the Mok-dong Districts 10 and 13 projects.
Both Seong-su and Mok-dong are significant not only for their contract values but also for their brand symbolism. The Seong-su Strategic Redevelopment Zone is being developed into a high-rise complex along the Han River, requiring both technical expertise and high-end product appeal from construction firms. Mok-dong's redevelopment involves reconstructing 14 districts, potentially transforming around 26,000 units into approximately 47,000 units, making initial contract successes influential for subsequent project competitions.
Hyundai Engineering has not secured additional contracts in the urban redevelopment market since winning the public redevelopment project for Jeonnong District 9 in December 2024. Amid rising construction costs and increased financial burdens, the company is maintaining a selective bidding approach focused on project viability rather than aggressive contract acquisition.
An industry insider noted, "Seong-su and Mok-dong are significant not only for their contract sizes but also for their brand symbolism. Construction firms that underperformed in the first half may seek to turn their fortunes around through these projects, while those that have already secured contracts will compete selectively to maintain their foothold in these key locations."
* This article has been translated by AI.
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