POSCO E&C Withdraws from Jeonbang and Ilshin Spinning Site Development in Gwangju

Withdrawal Ahead of Groundbreaking...
Burden of Safety Accidents and Industry Downturn
Daewoo to Build Alone, 'The Hyundai Gwangju' Proceeds Separately

POSCO E&C has withdrawn from the large-scale residential-commercial complex development project planned for the former Jeonbang and Ilshin Spinning sites in Gwangju.

The remaining old Ilshin Spinning Factory chimney within the planned site of The Hyundai Gwangju. Photo by Song Bohyun

According to Champions City Complex Development PFV and Gwangju City on September 17, POSCO E&C recently notified the project developer of its decision to halt negotiations for the residential construction contract. As a result, discussions are now underway for Daewoo Engineering & Construction, which had been designated as a joint preferred negotiator, to take on the project as the sole contractor.

The Champions City project involves the construction of 4,015 residential units, as well as office, commercial facilities, a luxury hotel, and a historical park on a 298,000-square-meter site in Im-dong, Buk-gu, Gwangju. Hyundai Department Store Group will build 'The Hyundai Gwangju,' which will be 1.5 times the size of The Hyundai Seoul, and the residential-commercial complex will be developed by Champions City Complex Development PFV under the 'All New Champions City' project.

The site of the former Jeonnam Textile and Ilsin Textile where The Hyundai Gwangju complex shopping mall will be built. Photo by Song Bohyun

Previously, Hyundai Engineering, Daewoo Engineering & Construction, GS Engineering & Construction, and POSCO E&C submitted letters of intent for the construction contract, and on April 28, Daewoo Engineering & Construction and POSCO E&C were designated as joint preferred negotiators. However, POSCO E&C is known to have withdrawn from the negotiations due to government sanctions following a fatal accident at a construction site this year, the downturn in the construction industry, and sluggish sales of unsold units in regional areas.

The project developer stated that they have decided to proceed with Daewoo Engineering & Construction as the sole contractor and plan to sign the main contract by the end of this month. A Champions City official said, "We are in discussions to finalize the contract with Daewoo Engineering & Construction within this month," and added, "There should be no significant disruption to the project scale or the construction and sales schedule, including the start of sales for the second complex (3,216 units) at the end of October."

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