Samsung C&T has secured the rights to develop the Hannam District 4 redevelopment project. (Image courtesy of Samsung C&T)
SEOUL, Jan. 21 (Korea Bizwire) — South Korea’s leading construction company, Samsung C&T, has secured the rights to develop the Hannam District 4 redevelopment project, outbidding its rival Hyundai Engineering & Construction and marking its entry into the Hannam New Town development project.
The win positions Samsung C&T favorably for future landmark projects, including the highly anticipated Apgujeong District 3 development.
Samsung C&T’s successful bid was anchored by an unprecedented package of financial incentives, including a four-year grace period for resident contributions, a commitment to absorb up to 31.4 billion won in construction cost increases, and a guarantee of Han River views for all units.
The company’s aggressive financial package drew industry attention from the outset. The offer included a minimum relocation allowance of 1.2 billion won per household and a pledge to self-finance up to 31.4 billion won of construction cost increases due to inflation before groundbreaking. The company also committed to securing 3 trillion won in project financing at a fixed rate of CD+0.78%.
In a move that further sweetened the deal, Samsung C&T proposed expanding the general sales area to 19,707 pyeong (approximately 65,033 square meters), offering 795 pyeong more than Hyundai’s proposal. The company also promised to maximize sales prices through a “price ceiling solution,” guaranteeing additional revenue for existing residents.
Samsung C&T claims its proposal offers at least 250 million won more in benefits per household compared to competitors, totaling 290 billion won in additional value. Industry experts describe these terms as exceptionally generous by current market standards.
“These conditions are unprecedented in today’s redevelopment projects,” said one industry insider. “It demonstrates not only the project’s potential profitability but also Samsung C&T’s determination to win the bid.”
The company’s proposed project name, “Raemian Glow Hills Hannam,” coupled with architectural plans ensuring Han River views for all units, resonated strongly with voters. This stood in stark contrast to Hyundai’s proposal, which couldn’t guarantee universal river views.
Working with international architectural firm UN Studio, Samsung C&T presented a distinctive spiral design for the riverside apartments. The plan includes green spaces exceeding 33,000 square meters – five times larger than Seoul City Hall’s lawn – and community facilities spanning close to 40,000 square meters, the largest in the Hannam New Town area.
The project, covering approximately 160,000 square meters in Bogwang-dong, Yongsan-gu, Seoul, represents a major development with estimated costs approaching 1.6 trillion won. Its central location within Hannam New Town and substantial allocation for general sales make it particularly valuable.
The competition was closely watched as a potential indicator for future high-profile projects, particularly the coveted Apgujeong District 3 development. The battle was particularly notable as it pitched two industry veterans against each other: Samsung C&T CEO Oh Se-chul and Hyundai E&C CEO Lee Han-woo, both alumni of Seoul National University’s architecture department.
Hyundai E&C, which had hoped to create an 8,000-unit “The H Brand Town” by combining Districts 3 and 4, was visibly shocked by the margin of defeat. Company representatives departed the voting venue in silence following the announcement of results, which showed a decisive 340-vote victory for Samsung C&T.
M. H. Lee (mhlee@koreabizwire.com)
