POSCO Construction, Sole Bidder for Busan's Largest Redevelopment Project 'Daeyeon 8 District'

[Asia Economy Reporter Yoo In-ho] POSCO Engineering & Construction will submit a sole bid for the ‘Daeyeon 8 District Redevelopment Project,’ the largest redevelopment project in the Busan area.

The Daeyeon 8 District Redevelopment Project is a large-scale project to build 3,530 apartment units on lot 1173 in Daeyeon-dong, Nam-gu, Busan. The construction cost is expected to exceed 800 billion KRW.

POSCO Engineering & Construction decided to submit a sole bid ahead of the bidding scheduled for the 15th. Regarding the reason for the sole bid, POSCO Engineering & Construction explained, “Compared to consortium projects where construction risks are shared, sole construction involves greater financial burdens beyond construction risks, but it allows us to provide uniform quality across all apartments as well as POSCO Engineering & Construction’s specialized designs and excellent residential conveniences to the union members.”

On the 21st of last month, 12 construction companies that attended the site briefing are deliberating whether to participate as a consortium or submit sole bids.

POSCO Engineering & Construction prides itself on its competitiveness in urban maintenance projects. Last year, it ranked second in the industry with urban maintenance project orders totaling 2.7 trillion KRW. In fact, POSCO Engineering & Construction recently secured consecutive projects in the Gangnam area, including Shinpangpo 18th and 21st complexes and Garak Hyundai 5th complex in Seoul.

POSCO Engineering & Construction was ranked 5th in the Construction Capability Evaluation conducted annually by the Ministry of Land, Infrastructure and Transport, rising one notch from the previous year.

In June, Korea Credit Rating and Korea Investors Service upgraded the company’s corporate bond credit rating from A to A+, making it the only one among the top 10 construction companies to receive a credit rating upgrade this year.

In particular, POSCO Engineering & Construction is recognized for its high brand preference in the Busan region. Starting with The Sharp Centum Park (3,750 units) in 2002, it has supplied over 28,000 households in Busan alone. Additionally, by successfully completing LCT The Sharp (101 floors), the tallest residential-commercial complex in Busan worth 1.4 trillion KRW, The Sharp has established itself as the most preferred housing brand among Busan citizens.

A POSCO Engineering & Construction official stated, “Since we decided on the sole bid, which is the most advantageous and beneficial for the majority of union members, we will demonstrate POSCO Engineering & Construction’s commitment and sincerity. As we have set a low sales profit margin, we will concentrate all the company’s resources and capabilities to transform this into the finest luxury residential complex in Busan and, with a sense of mission as a corporate citizen that grows together with the community, repay the region by becoming a landmark.”

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