2 Trillion Won 'Jamsil Battle'... Hanwha-HDC Consortium Defeats Martial Arts Dream Team (Comprehensive)

Hanwha Construction Selected as Preferred Negotiation Partner for 'Jamsil MICE Project'
Demonstrating Strength in Complex Development, Operation Expertise, and Metaverse Creativity

The Hanwha Construction consortium has been selected as the preferred negotiator for the 'Seoul Jamsil Sports & MICE (Meetings, Incentives, Conferences, and Exhibitions) Complex Development Project (Jamsil MICE Project),' defeating the Korea International Trade Association (KITA) consortium. The Hanwha consortium's expertise and creativity in complex development were highly praised. Although the KITA consortium, formed with major companies from various sectors and dubbed the 'Dream Team,' seemed to have the momentum, they ultimately faced defeat.

◆ Project cost of 2.2 trillion KRW, the largest private investment project in Korea = On the 10th, Seoul City announced that it had designated 'Seoul Smart MICE Park (led by Hanwha Construction)' as the preferred negotiator for the Jamsil MICE project.

The Jamsil MICE project involves developing a complex facility on a 357,576㎡ site around Jamsil Sports Complex in Songpa-gu, Seoul, including a convention center three times the size of COEX, a baseball stadium, sports complex, swimming pool, water leisure facilities, hotels, cultural, commercial, and office facilities. The total gross floor area of the buildings will be 880,000㎡, with a project cost reaching 2.1672 trillion KRW, making it the largest private investment project for a complex facility in Korea.

In fact, this project will be carried out as a Build-Transfer-Operate (BTO) type revenue-generating private investment project, where the private sector bears the entire project cost and recovers the investment through 40 years of operation. While construction capability is important, operational know-how to manage and operate the complex space stably over 40 years is crucial.

Seoul City plans to form a negotiation team promptly and start negotiations with the preferred negotiator for the implementation agreement as early as January next year, aiming to sign the agreement in the first half of 2023. Seoul City and Hanwha Construction will carefully review various impacts such as traffic and environment, incorporate opinions from local residents, citizens, and experts to finalize the design plan, and begin construction in the second half of 2023.

Once completed, the Jamsil MICE project is expected to significantly contribute to strengthening Seoul's global urban competitiveness by activating international exchanges such as exhibitions of new industries including smart mobility, K-beauty, healthcare, and international conferences. Additionally, as a complex cultural facility harmonized with urban waterfront spaces like Tancheon Stream and the Han River, it is anticipated to become a landmark representing Seoul, loved by citizens and visitors year-round.

Aerial view of the site for the Jamsil Sports and MICE (Meetings, Incentives, Conferences, and Exhibitions) complex private investment project

◆ Hanwha's 'Innovation' against KITA's 'Dream Team' = KITA first proposed the Jamsil MICE project to Seoul City in 2016 and is also recognized as a pioneer in Korea's MICE industry. The consortium was dazzling enough to be called a 'Dream Team.' Therefore, the industry seemed to lean towards the KITA consortium's chances of winning, but the result was different.

The challenger, Hanwha consortium, differentiated itself by combining its know-how in complex development projects with private sector creativity. The biggest distinction was that a technology operation company possessing future technologies directly invested and participated responsibly.

Hanwha Group and HDC Group affiliates, leading the Hanwha consortium, will not simply act as contractors seeking construction profits but will serve as the main project operators holding the largest shares, participating for 40 years to coordinate responsible operations as a central hub.

They actively encouraged participation from competitive partners by structuring the operating investors' shares to constitute more than half, which is key to successful operation. Leading the group is Hanwha Systems, a defense electronic systems & ICT smart solutions convergence company, along with Nexon, boasting unrivaled competitiveness in gaming and character business, and Megazone, a leader in digital innovation using cloud technology, among many others showcasing future technologies.

The plan is to realize a smart complex in Jamsil featuring a metaverse integrating online and offline, performances and exhibitions crossing virtual and reality, an integrated platform connecting facilities organically, autonomous shuttles, and Urban Air Mobility (UAM).

Additionally, KINTEX, which secured a 20-year operation right for India's largest convention center (New Delhi, the fourth largest in Asia) based on its know-how operating the largest exhibition convention center in Korea with an exhibition area three times that of COEX, also participated to enhance competitiveness.

Design was also a differentiating point. Populous, the world's No.1 design and consulting firm in sports stadiums, arenas, and MICE sectors from the U.S., joined the consortium. Populous is the firm responsible for designing and renovating over 20 Major League Baseball stadiums, including the New York Yankees Stadium.

Moreover, the Hanwha consortium plans to promote a carbon-neutral complex with a renewable energy self-sufficiency rate more than twice the mandatory ratio to build a sustainable future city, reflecting the growing importance of energy independence and carbon neutrality in the current era.

Seo Seong-man, head of Seoul City's Balanced Development Headquarters, said, "The Jamsil MICE project is a core project that will enhance Seoul's global competitiveness, invigorate the economy through the creation of high-quality international business infrastructure, and create new jobs, contributing to making Seoul a top-tier global city. We will do our best to ensure the smooth progress of this project."

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