Major Redevelopment 'Hannam3' on Track... Transforming into a Luxury Complex Resembling Hangang and Namsan

Hyundai Construction Wins Hannam 3 Construction Rights, Defeating Daelim Industrial and GS Construction
Demolishing Old Houses in Hannam-dong 686 Area to Build 5,816 Units
Exterior Resembling Han River Waves with a 90m Elevation Walking Trail

[Asia Economy Reporter Onyu Lim] The selection of the construction company for Hannam 3 District in Yongsan-gu, Seoul, with a total project cost of 7 trillion KRW and known as the "largest redevelopment since Dangun," has been finalized, putting the project on track. Hannam 3 District, which is densely packed with old houses, is set to be transformed into the premium residential complex "The H Hannam," symbolizing the Han River and Namsan, through construction by Hyundai Engineering & Construction by 2025.

According to Hyundai Engineering & Construction and the Hannam 3 District Redevelopment Association on the 22nd, Hyundai Engineering & Construction secured the construction rights by receiving a total of 1,409 votes at the Hannam 3 District general meeting held yesterday at COEX in Samseong-dong, Gangnam-gu, Seoul. Yoon Young-jun, Head of Hyundai Engineering & Construction's Housing Business Division, said, "We will make Hannam 3 District reborn as 'The H Hannam,' the best luxury complex representing Gangbuk." Hyundai Engineering & Construction plans to demolish old houses in the area around 686 Hannam-dong, Yongsan-gu, and build 197 buildings ranging from six basement floors to 22 above-ground floors, with 5,816 households (including 876 rental units) and neighborhood living facilities.

According to the plan proposed by Hyundai Engineering & Construction for Hannam 3 District, the complex will be composed of River Wave, symbolizing the waves of the Han River; Mountain Wave, representing the flow of Namsan; and Culture Wave, reflecting Hannam culture, all based on the integrated concept called "The Wave." Considering the narrow spacing between buildings, Hyundai Engineering & Construction plans to apply "Miracle Window," which can adjust transparency in 16 levels to protect privacy between households. Additionally, a light plasma sterilization and ventilation system to eliminate viruses will be installed.

Differentiated community and landscaping features will also be applied. These include an infinity pool overlooking the Han River, a 5 km-long forest trail with the largest variety of tree species among apartment complexes, and a residents-only skywalk called "Yongbieocheonga" built at an altitude of 90 meters. The commercial facilities developed in collaboration with Hyundai Department Store Group also attract attention.

The total construction cost is 1.7377 trillion KRW based on an alternative design that upgrades the original plan. A Hyundai Engineering & Construction official said, "Although this amount is about 150 billion KRW less than the 1.888 trillion KRW estimated by the association, we will fully comply with the association's recommended closing level."

Hyundai Engineering & Construction plans to begin construction as early as June next year after relocation is completed. The scheduled construction period is 37 months after groundbreaking. The H Hannam is expected to be completed as early as July 2025. The company has also promised additional financial support beyond the basic relocation cost with a loan-to-value (LTV) ratio of 40%. This effectively means that relocation costs can be covered up to 100% of the LTV. Furthermore, 500 billion KRW has been prepared as project promotion funds to resolve issues arising during the project such as eviction, tenant problems, and permit delays.

However, the process of selecting the construction company for Hannam 3 District was intense, and problems were significant. Issues such as overheated competition beyond the extraordinary, mutual defamation to harm competitors, and repeated problems in securing redevelopment projects occurred. The Seoul Metropolitan Government and the Ministry of Land, Infrastructure and Transport once invalidated the Hannam 3 District construction company bidding last year, citing violations of the Urban and Residential Environment Improvement Act, including interest-free project cost loans, guaranteed minimum relocation costs, and design plans without rental apartments.

Even after the re-bidding barely started following the prosecution's decision not to detain, the overheated bidding war continued until just before the construction company selection. The Hannam 3 District association issued a warning to Hyundai Engineering & Construction for distributing press releases related to the bid proposal, citing violation of the "individual promotion guidelines," and Daelim Industrial also received a warning for exaggerating CG in the Twitter design plan. These warnings were issued after competitors raised issues with the association.

An industry insider pointed out, "Excessive competition among companies ultimately leads to conflicts among association members, which can cause project delays." This is also why a Hannam 3 District association official emphasized just before announcing the construction company selection vote results, "We must accept the results with the mindset that it is 'our construction company,' not 'my construction company.'"

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