Zero Interest Rate vs. Galleria Hyundai... DL and Hyundai Unveil Project Terms for Apgujeong District 5

Disclosure of Project Terms for Apgujeong District 5
DL E&C Focuses on Easing Project Cost Burden
Hyundai E&C Highlights Luxury Lifestyle

Hyundai Engineering & Construction and DL E&C have begun to unveil their project proposals for the Apgujeong District 5 redevelopment in Gangnam-gu, aiming to win over union members’ votes.

On April 23, DL E&C presented “Acro Apgujeong” as the name for the complex, applying its high-end brand “ACRO.” The company also proposed financial terms that would significantly reduce the financial burden on union members.

DL E&C: 'Zero Additional Interest Rate' on Mandatory Project Costs... Proposes 150% LTV for Relocation Loans

DL E&C recently proposed a “zero additional interest rate,” one of the lowest among recent reconstruction project rates. The company plans to procure the mandatory project costs based on the COFIX (Cost of Funds Index) new balance rate plus 0%.

Union members will be allowed to pay their assessments for up to seven years after moving in. Notably, DL E&C pledged to offer a loan-to-value (LTV) ratio of 150% for additional relocation loans provided by the contractor. The company explained that this was in consideration of the increased difficulty in securing relocation funding due to recent tightening of lending regulations and higher interest rates.

In terms of construction costs, DL E&C proposed 11.39 million won per 3.3 square meters (per pyeong), which is 1 million won less than the estimated construction cost suggested by the union. To minimize interest on relocation loans and project costs, the construction period was set at 57 months, four months shorter than Apgujeong District 2.

To ensure project feasibility, the company also proposed “zero construction costs for commercial facilities.” In addition, the commercial area would be significantly expanded from 1,696 pyeong to 5,069 pyeong (16,730 square meters), allowing each household to earn an additional 660 million won in commercial unit sales revenue. The actual usable area per household would also increase by 1,535 pyeong, aiming to maximize the asset value of union members.

A DL E&C representative stated, “In order to minimize the burden and risk on union members, we have included a wide range of guaranteed conditions, presenting unprecedented terms rarely seen in other redevelopment projects. We have also concentrated our best design capabilities to deliver Apgujeong District 5 not only as the best in Apgujeong but as the premier high-end residential complex in Korea.”

Hyundai Engineering & Construction Proposes ‘Galleria Hyundai’... Establishment of On-site DRT Shuttle

Hyundai Engineering & Construction has pledged to design a super-luxury residential complex focused on improving the quality of life for union members.

On the same day, Hyundai Engineering & Construction proposed “Apgujeong Hyundai Galleria” as the name for the complex, combining the symbolic “Apgujeong Hyundai”—the hallmark of Korea’s top residential district—with “Galleria,” a renowned luxury department store.

The company also plans to collaborate with Hyundai Motor Group to apply advanced robotics technology and on-demand transportation (DRT) throughout the complex. The DRT unmanned shuttle service will connect all of Apgujeong like a single city, allowing residents to quickly travel to their destinations by calling a vehicle from inside their homes.

In terms of residential features, Hyundai Engineering & Construction promises 100% Han River views for all units and a “Zero Wall” panoramic view that extends up to 240 degrees. The company also proposed “Club Apgujeong,” a large-scale community facility of 12 pyeong per household, and “The Circle 420,” Korea’s first circular community center, where leisure, sports, and cultural programs will be run. In collaboration with Hanwha, exclusive membership services will be offered, allowing residents access to the Galleria Luxury Hall VIP lounge, shopping benefits, and special programs.

A Hyundai Engineering & Construction representative said, “In Apgujeong, there is extremely high preference and expectation for ‘Apgujeong Hyundai,’ not only in Districts 2 and 3 where it is already present but throughout the entire area. We will carry forward the identity of District 5, which stands at the center of this new transformation, and complete ‘Apgujeong Hanyang’ as the new ‘Apgujeong Hyundai.’”

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