POSCO Construction Wins Busan Daeyeon 8 District Contract... Munhyeon 1 District Goes to GS Construction

Large-scale project around 1 trillion KRW
POSCO E&C selected as contractor
GS E&C chosen for Munhyeon 1 District

Busan Daehyeon 8 District Bird's-eye View

[Asia Economy reporters Inho Yoo and Donghyun Choi] POSCO Engineering & Construction and GS Engineering & Construction have consecutively secured large-scale redevelopment projects worth around 1 trillion KRW in Busan.

According to the maintenance industry on the 19th, POSCO Engineering & Construction was selected as the contractor at the general meeting of the Daeyeon 8 District union members in Nam-gu, Busan, held the day before. Besides POSCO Engineering & Construction, HDC Hyundai Development Company and Lotte Construction consortium also participated in the bidding for this project.

The Daeyeon 8 District project involves redeveloping an old residential area around 1173 Daeyeon 4-dong, Nam-gu, Busan, into 30 apartment buildings with 3,516 households. The construction cost alone amounts to 900 billion KRW, making it a mammoth-scale project.

The district is located west of the UN Sculpture Park. To the north are Daeyeon Station and Motgol Station on Busan Subway Line 2. Nearby, large-scale redevelopment projects are underway, including Daeyeon Lotte Castle Legend, which houses 3,149 households and was completed in 2018.

POSCO Engineering & Construction explained that they gained the support of union members by offering 30 million KRW per household as complaint handling fees and proposing a low construction cost of 4.365 million KRW per 3.3㎡.

With this contract, POSCO Engineering & Construction has secured construction rights for maintenance projects worth 1.8 trillion KRW this year, including Sinbanpo 21st in Seocho-gu, Seoul, Garak Hyundai 5th in Songpa, Daegu Gyeongnam Town, and remodeling of Bowon Apartments in Suji, Yongin, Gyeonggi Province.

Busan Munhyeon 1 District Bird's-eye View

GS Engineering & Construction was also selected as the contractor at the general meeting of the Munhyeon 1 District redevelopment union held on the 17th in Busan. GS Engineering & Construction, which submitted a sole bid for this project, won the contract through a private contract method.

Accordingly, Munhyeon 1 District in 740-2 Munhyeon-dong, Nam-gu, will feature eight apartment buildings ranging from seven basement floors to 70 above-ground floors with 2,758 households and two officetel buildings with 514 units. The construction cost is approximately 1.01 trillion KRW. The district is adjacent to the Busan International Finance Center (BIFC) and is close to International Finance Center·Busan Bank Station and Munhyeon Station on Subway Line 2. With this contract, GS Engineering & Construction is recording about 1.9 trillion KRW in maintenance project orders this year.

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