HDC Hyundai Development, Expectations for Consecutive Reconstruction Wins... Wolgye-dong New Project Likely on 27th

On the 19th, officials from the Ministry of Employment and Labor and the police conducted a search and seizure at the headquarters of HDC Hyundai Development Company in Yongsan-gu, Seoul, in connection with the collapse accident at Hwajeong I-Park in Seo-gu, Gwangju. Scene from the day. Photo by Moon Honam munonam@

HDC Hyundai Development Company (HDC Hyundae Industrial Development, Hyunsan) will bid for the reconstruction project of Wolgye-dong Shina Apartment in Wolgye-dong, Nowon-gu, Seoul on the 27th. Attention is focused on whether Hyunsan, which was pushed to the brink of being expelled from urban maintenance projects, can turn the tide by consecutively winning reconstruction orders.

According to the maintenance industry on the 25th, the Wolgye-dong Shina Apartment Reconstruction Association will hold a general meeting in two days to select a construction company. This is a 280 billion KRW project to reconstruct a total of 1,070 households with 4 basement floors to 25 above-ground floors on approximately 43,000㎡ in the area of 436 Wolgye-dong. The industry views Hyunsan as the likely winner of the order. This is because the business conditions are considered more aggressive compared to its competitor Kolon Global. Hyunsan proposed ▲100% compensation in kind in case of unsold units ▲support of 450 billion KRW in total, 500 million KRW per household as project promotion costs ▲fixed construction costs with no additional burden ▲the first application in Gangbuk of a high-end brand launch or brand renewal in the future. The head of Wolgye-dong A Real Estate Agency said, "Hyunsan has been putting effort into this project site for a long time and the business conditions are not bad," adding, "Although anxiety has spread due to the Gwangju disaster, the trend is leaning toward Hyunsan."

Hyunsan is on the edge in the housing maintenance business due to two construction site collapse accidents last year and this year. Voices demanding the replacement of construction companies are emerging at many project sites. It is a situation where it is more necessary than ever to demonstrate market trust and competitiveness through new orders. Earlier this month, Hyunsan won the construction rights by beating competitors in the reconstruction bidding of Gwanyang Hyundai Apartment in Anyang-si, Gyeonggi-do. If it also wins the Wolgye-dong Shina project, it is evaluated that it can firmly establish a foothold for recovery. Moreover, Wolgye-dong Shina is geographically adjacent to Gwangwoon University Station area development, a core site of Hyunsan’s complex development projects, creating a significant synergy effect. In fact, the complex design also proposes an overbridge connecting to the Gwangwoon University Station area.

However, there are concerns that the problem lies not in winning the order itself but what comes afterward. Variables such as costs for follow-up measures after the collapse accident and administrative sanctions remain. In the case of Gwangju Hwajeong I-Park, it is expected to take more than two years just to completely demolish Building 201 where the accident occurred. Losses including compensation for delayed move-in, demolition costs, and reconstruction costs are expected to reach several hundred billion KRW. In addition, the Ministry of Land, Infrastructure and Transport has announced the highest level of disciplinary action related to Hyunsan’s accident.

Hyunsan is proposing overwhelmingly superior business conditions compared to other companies in maintenance projects, but there are concerns that this could become a ‘poisoned chalice.’

An industry insider said, "It is doubtful whether Hyunsan can actually fulfill the conditions it proposed," adding, "Last year, conflicts between the association and the construction company over construction and project costs intensified, leading to a wave of construction company replacements, and there is a possibility that such a situation could recur in the future."

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