[Report] Fierce Gangnam Reconstruction Bidding Battle... Samsung C&T Wins Banpo 3rd District

On the 30th, at COEX in Gangnam-gu, Seoul, the general meeting for selecting the construction company for the reconstruction of Banpo Jugong Complex 1 District 3 was held. Union members are going through the procedures for entry. (Photo by Lee Chunhee)

[Asia Economy Reporter Lee Chun-hee] "Both sides have their pros and cons, so I still haven't made a decision. I came early to attend the on-site briefing one last time." (Union member A, 62)

"It seems that the undeniable brand power and the promise of rapid project execution were decisive." (Samsung C&T official)

On the afternoon of the 30th, a tense atmosphere prevailed at COEX in Samseong-dong, Gangnam-gu, Seoul. This was because a general meeting of the union was held here to select the construction company for the Banpo Jugong 1st Complex 3rd District reconstruction project in Seocho-gu, with a construction cost of 800 billion KRW. In this bidding battle, Samsung C&T, which declared its return to reconstruction bids after five years, and Daewoo E&C, aiming for its first large-scale reconstruction project in Gangnam, competed neck and neck, with Samsung C&T ultimately selected as the construction company. Out of 1,623 total union members, 1,316 participated in the vote, and after a close contest of 686 (52.1%) to 617 votes, Samsung C&T raised the victory toast. There were 13 abstentions and invalid votes.

On the 30th, at the general meeting for selecting the construction company of Banpo Jugong Complex 1 District 3 in COEX, Gangnam-gu, Seoul, Samsung C&T employees who succeeded in winning the contract are cheering. (Photo by Lee Chunhee)

Before the schedule starting with the on-site briefing at 2 PM followed by the general meeting at 3 PM, union members began gathering one after another. They checked the roster and moved into the meeting hall. Unlike before, the early voting rate was somewhat low. The union had conducted early voting at the union office over two days, the 27th and 28th, but only 191 out of 1,623 members (11.8%) cast their votes early. Adding 1,184 on-site voters, a total of 1,316 participated in the vote. Although it was expected that early voting would surge due to the spread of COVID-19, it seemed that more people were interested in how their 'home' would be built.

On the 30th, the general meeting for selecting the construction company for the reconstruction of Banpo Jugong Complex 1 District 3 was held at COEX in Gangnam-gu, Seoul. (Photo by Lee Chunhee)

With the government and Seoul City implementing stringent regulations and 'clean bidding' becoming a hot topic in the industry, both companies maintained a calmer atmosphere than before. However, some union members openly supporting different companies engaged in heated debates, causing some commotion. The union prepared quarantine measures such as spacing chairs apart in the venue, installing thermal cameras, and providing hand sanitizers, but some criticized the measures as insufficient, saying, "Is this acceptable in these times?"

Since the battle was a matter of corporate pride for both companies, their CEOs personally participated to appeal for last-minute support from union members. Lee Young-ho, CEO of Samsung C&T, said, "We will fully mobilize Samsung C&T's products, technology, and service capabilities to create a monumental work that will be remembered in the 20-year history of Raemian," emphasizing, "We will keep all the promises we have prepared and made, building an apartment whose value will shine more over time." Kim Hyung, CEO of Daewoo E&C, said, "This is a challenge we must win," and pledged, "I will uphold Daewoo E&C's honor by honoring the proposal and contract."

The voting outcome was unpredictable for the entire industry. Samsung C&T, returning to reconstruction bids after five years, aimed to regain its past reputation by riding the wave of the Sinbanpo 15th reconstruction project win, while Daewoo E&C proposed various conditions, including a separate complex name, 'Trilliant Banpo,' to win its first large-scale reconstruction project in Gangnam. Many union members attending the general meeting said they had "not yet decided." Union member B (55) said, "We should carefully consider which company will build our home," adding, "I need to think about it a bit more."

Reconstruction design plan for Banpo Jugong Complex 1 District 3 proposed by Samsung C&T (Provided by Samsung C&T)

Nevertheless, the analysis is that Samsung C&T was ultimately selected as the construction company due to its brand power and proposals that maximized union members' property rights, such as rapid project progress and guaranteed sales income through post-construction sales. Samsung C&T has successfully completed 'Raemian Prestige' through the Banpo Jugong 2nd Complex reconstruction near the project site in 2009, is about to launch sales for 'Raemian One Bailey' from the Sinbanpo 3rd and Gyeongnam apartment reconstructions, and recently succeeded in winning the Sinbanpo 15th reconstruction project, turning this area into a 'Raemian Town.'

Samsung C&T also proposed groundbreaking conditions such as '100% post-completion sales' and 'shortened construction period.' The project period was significantly shortened, with the actual move-in date proposed as March 2024. The explanation is that shortening the project and construction periods maximizes the benefits for union members.

This project involves reconstructing the Banpo Jugong 1st Complex 3rd District in Banpobon-dong, Seocho-gu, located at lot number 1109, into 2,091 households across 17 buildings ranging from three basement floors to 35 above-ground floors. The union has set the construction cost at approximately 808.7 billion KRW.

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