GBC: Seeing 'Widely' Rather Than 'Higher'

Hyundai Motor Group Global Business Center Project Plan Change
Opting for Divided Construction of 55 Floors Instead of Maximum 105 Floors
Safety, Security, and Civil Complaints Expected to Improve...Anticipated as a Symbol of New Technology

The Empire State Building in the United States had a significant vacancy rate for a long time after its construction. The impact of the Great Depression at the time was substantial. The Burj Khalifa in Dubai, the world's tallest building, was completed with the help of the neighboring emirate Abu Dhabi because Dubai declared a moratorium (debt repayment deferral) during its construction.

The trials faced by skyscrapers were similar domestically. During the construction of the tallest building in Korea, Lotte World Tower, authorities conducted intensive investigations targeting the Lotte Group and its owner family. Haeundae LCT was engulfed in negative issues to the extent it was called a gate, and Yeouido Park One also halted construction due to lawsuits surrounding the building owner.

The curse of skyscrapers is a superstition that when buildings compete in height during economic booms, an economic crisis follows after the buildings are completed. It is also seen as a metaphor for the cyclical nature of economic fluctuations. Coincidentally, the process of constructing skyscrapers both domestically and internationally has not been smooth since the past.

"Practicality over Justification"... Abandoned the 105-Story Obsession

Hyundai Motor Group has decided to lower the maximum number of floors and height of the Global Business Center (GBC) planned on the Korea Electric Power Corporation (KEPCO) site in Samseong-dong. The GBC project was initiated during the era of Chung Mong-koo, honorary chairman and father of Hyundai Motor Group Chairman Chung Eui-sun. It started in the mid-2000s with the idea of creating an integrated group headquarters gathering major affiliates.

After purchasing the site, which became available when KEPCO relocated its headquarters in 2014, for 10.55 trillion won, the project took its first significant step. The original plan was to build Korea's tallest building with over 100 floors, along with four ancillary facilities including a hotel and exhibition hall. Earlier this month, the company submitted a revised development plan to the city to build six buildings, including two 55-story towers.

There have been consistent voices inside and outside Hyundai Motor Group advocating for lowering the building height. This is due to various issues arising during the project, including enormous costs, safety, security, and complaints from the surrounding community. Although the title of 'tallest building' will be lost, the industry expects that the project will gain more ancillary benefits.

Chairman Chung Euisun of Hyundai Motor Group [Photo by Hyundai Motor Group] [Image source=Yonhap News]

When the initial design was finalized in 2016, the company estimated that constructing the new headquarters alone would cost about 2.57 trillion won. Since then, labor and material costs have surged, and it is now expected to exceed 5 trillion won even for the same construction. A construction industry official said, "For a 100-story building, the cost is not just twice that of a 50-story building but more than that," adding, "Raw material prices have risen sharply due to COVID-19, and manpower supply is also unstable."

Inside the company, the change in leadership during the GBC project is cited as a major reason for this decision. As Chairman Chung Eui-sun, who oversees overall group management, emphasizes practicality, the GBC project is seen in the same context. An industry insider who wished to remain anonymous said, "Most key aides during the previous chairman's era were negative about the supertall building, but Chung Mong-koo's strong will created an atmosphere where they could not speak frankly."

Lowering the building height is also expected to resolve military operation interference issues. Initially, concerns were raised that the over 500-meter height could limit the operation of Air Force radar. When Hyundai Motor Group first planned the 100-story building, they agreed to purchase new radar for the military. The sunlight rights issue with nearby Bongeunsa Temple, which had also surfaced, was naturally resolved. Although the court ruled there was no problem, lowering the height will reduce complaints from the surrounding community.

Hyundai Motor Company building in Yangjae-dong, Seoul. Photo by Jinhyung Kang aymsdream@

Public Contributions Remain... Expected to Include New Businesses

The key to approval of the revised plan lies with the Seoul Metropolitan Government. However, it is known that there were ongoing behind-the-scenes discussions before and after submitting the revised plan, so it is highly likely to proceed as changed. Typically, if the building owner changes the project plan, it is accepted unless there are procedural defects or special issues. Public contributions will not decrease even if the project plan changes this time.

A Seoul city official said, "No specific decision has been made regarding acceptance or handling of the revised plan, and we will comprehensively review any issues before deciding," adding, "However, if the revised plan proceeds, urban planning changes will be required."

The Gangnam District Office, which had expected a supertall landmark as originally planned, has somewhat softened its stance. Gangnam District had insisted that the 105-story project should proceed as originally planned. A district official said, "Hyundai Motor Group will hold a briefing session for residents about the changed project plan, and after the session, residents' opinions will be collected and conveyed to the city or the company."

Hyundai Gyedong Building. Built in 1983, it was established during the period when the Hyundai Group was expanding its business.
[Photo by Hyundai Construction]

Internally, there is consideration on how to incorporate the group's future businesses into the new headquarters building. It is expected to integrate vertical takeoff and landing terminals (vertiports) for advanced air mobility (AAM) and future transportation means beyond automobiles, as well as the ecosystem of the hydrogen business and eco-friendly carbon reduction technologies promoted at the group level throughout the building.

An industry insider said, "They judged that a practical approach is a priority over symbolic meaning," adding, "Instead of pursuing supertall status, the saved costs will likely be used to incorporate various software."

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