"All Executives Mobilized" 800 Billion Won Construction Cost for Prime Gangnam Reconstruction, '10 Days of Life-or-Death' Has Begun

Competition for Banpo 3rd District Construction Rights: Samsung C&T vs Daewoo E&C
Promotional Center Officially Opens on the 20th... Full-Fledged Face-to-Face Promotion Begins
At the First Joint Briefing the Day Before, Presidents Emphasized "We Will Keep Our Promises"
About 10 Days Until the Construction Company Selection Meeting on the 30th, "Prepared for an All-Out Battle"

[Asia Economy Reporter Kim Yuri] The '10-day full-scale battle' between Samsung C&T and Daewoo E&C has begun over the construction rights for Banpo 3rd District (Banpo 3-joogu) of Jugong 1 Complex in Banpo-dong, Seocho-gu, Seoul, considered the biggest reconstruction project in the first half of this year.

On the 20th, Samsung C&T and Daewoo E&C officially opened their respective promotional centers within Banpo 3-joogu, Seocho-gu, Seoul, and began full-scale face-to-face promotions. With about 10 days remaining until the general meeting of union members scheduled for the 30th to select the construction company, both companies are determined to launch an all-out effort to secure the construction rights during this period.

The opening salvo of the full-scale order competition was the first joint briefing session held the previous afternoon. Despite being the first session, the CEOs of both companies attended and emphasized to the union members, "We will definitely keep our promises," showing strong determination to win the project. Kim Hyung, President of Daewoo E&C, said, "Banpo 3-joogu is a very important project for the future of Daewoo E&C," and emphasized, "We will build a new landmark that will be talked about for 100 years." He promised, "We will adhere to the bid proposal and contract terms to swiftly advance the project. We will return the highest development profits to the union members. I will personally oversee even the smallest issues during the project period," pledging successful completion of the reconstruction project.

Lee Young-ho, President of Samsung C&T, also showed confidence in winning the project in front of the union members. Lee said, "Raemian has been ranked number one in the apartment brand category for 22 consecutive years," and emphasized, "With Raemian's excellent quality, technology, service, exterior, landscaping, Internet of Things (IoT), and eco-friendly technology, we will create truly livable homes and valuable luxury complexes." He added, "We have put all our sincerity and attention into Banpo 3-joogu," and said, "Through thorough project preparation, we will keep the project schedule, including the move-in date."

Daewoo E&C proposed pre-sale, post-sale, and sale of general sale units through REITs (Real Estate Investment Trusts). However, regarding the REITs sale, they explained they would have additional consultations with the Seoul Metropolitan Government, which has expressed opposition. Daewoo stated that the project cost of 780 billion KRW can be financed at a fixed interest rate of 0.9% per annum, with the remaining project costs financed at about 2.5% per annum. They also said that if union members take out individual loans for relocation costs, the loan interest would be supported with 220 billion KRW from the project activation fund.

Samsung C&T proposed '100% post-completion sale.' They explained that choosing this method would increase sales revenue by about 250 billion KRW due to the rise in official land prices. They also emphasized rapid project progress, planning to complete construction within 12 months after selecting the construction company. They plan to start construction in May next year and reduce the construction period to 34 months, cutting project interest by 12 billion KRW. The project cost will be financed up to 3 trillion KRW at an interest rate of 1.8?1.9% per annum, which is the Samsung C&T corporate bond rate (AA rating) plus 0.25 percentage points.

The Banpo 3-joogu reconstruction project involves rebuilding the area 1109 in Banpo-dong, Seocho-gu, Seoul, into 17 buildings ranging from three basement floors to 25 above-ground floors, with 2,091 households. Located along the Han River, it is a symbolic location in Banpobon-dong along with Jugong 1 Complex 1st, 2nd, and 4th districts, with construction costs reaching 808.7 billion KRW.

This content was produced with the assistance of AI translation services.