The briefing for selecting a contractor for the redevelopment of Seongsu 2 District in Seoul saw attendance from DL E&C and IPARK Hyundai Development, marking the start of a competitive bidding process valued at approximately 2 trillion won. However, IPARK Hyundai Development plans to assess the project's viability before deciding whether to participate in the bidding, leaving the actual competition in question.
Representatives from DL E&C and IPARK Hyundai Development attended the briefing held on July 15 at 2 p.m. The consortium had announced the bidding notice on July 7, with the bidding process set to continue until 3 p.m. on August 31.
The chairman of the Seongsu 2 District redevelopment consortium stated immediately after the briefing, "Both DL E&C and IPARK Hyundai Development attended the briefing, and there are no changes to the current schedule."
The Seongsu 2 District redevelopment project aims to construct up to 65 floors with 2,381 housing units and community facilities in the area of 506 Seongsu-dong 2-ga, Seongdong-gu, Seoul. The estimated construction cost is about 2.1 trillion won, making it the second-largest project among the four districts in the Seongsu Strategic Maintenance Zone, following Seongsu 1 District.
The bidding will be conducted through a general competitive bidding process, and joint bidding is not permitted. The bid guarantee consists of 700 billion won in cash and 300 billion won in performance bond insurance, totaling 1 trillion won.
This bidding process is a reinitiation after last year's project was canceled. During the first bidding last year, a competitive scenario between DL E&C and POSCO E&C was anticipated, but controversy arose between the former chairman of the consortium and a POSCO E&C public relations officer, leading POSCO E&C to withdraw from the bidding, resulting in a failure to secure a contractor. Following a prolonged hiatus due to a leadership vacuum, the new executive team has resumed the contractor selection process this year.
IPARK Hyundai Development, which had previously taken a cautious stance, attended the briefing to begin its viability assessment. However, attendance at the briefing is merely a procedural step to qualify for bidding, and the company has yet to decide on its actual participation. An IPARK Hyundai Development representative stated, "It is too early to comment on our bidding participation at this stage."
Industry insiders express skepticism about the likelihood of a competitive bidding process. One industry source noted, "Attendance at the briefing is also aimed at securing eligibility for future bidding, and ultimately, there is a possibility that DL E&C may bid alone."
DL E&C has been focusing on Seongsu 2 District as a strategic project and has invested considerable effort into it. A DL E&C representative remarked, "We are actively reviewing the Seongsu 2 District project." Given that the company's urban maintenance project achievements this year have been limited to Mokdong 6 District, industry analysts expect it to intensify its efforts to secure Seongsu 2 District.
Similarly, IPARK Hyundai Development has not secured any urban maintenance project contracts in the first half of the year. Success in winning the Seongsu 2 District contract could allow the company to secure more than half of its annual urban maintenance contract target of 3.25 trillion won, while also enhancing its brand competitiveness through a landmark project along the Han River.
Meanwhile, the Seongsu Strategic Maintenance Zone is a key redevelopment project in Seoul, comprising four districts along the Han River, with a total project cost of 8 trillion won and approximately 9,500 housing units. Currently, contractors for districts 1 and 4 have been selected by GS Construction and Lotte Construction, respectively, while the contractor selection process for districts 2 and 3 is ongoing.
* This article has been translated by AI.
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