Dropping Raemian and The H for "Apgujeong": Name Value War in Korea's Top Wealthy District [Real Estate AtoZ]

The Only Neighborhood Where Builders Take a Back Seat
"The Complex Name Creates the Brand"

The top two domestic construction companies, both vying for multi-trillion-won reconstruction contracts in Apgujeong-dong, Gangnam-gu, Seoul, have set aside their own brands. Samsung C&T Corporation and Hyundai Engineering & Construction have both chosen to include "Apgujeong" in the project names, instead of their usual brands "Raemian" and "The H," respectively. "Apgujeong" itself is emerging as a high-end brand.

Perspective rendering of 'The Cullinan Apgujeong' proposed by Samsung C&T Corporation for the redevelopment project of Apgujeong District 4 in Gangnam-gu, Seoul. Samsung C&T Corporation

According to the maintenance industry on May 7, Samsung C&T Corporation proposed the name "The Cullinan Apgujeong" as an alternative design concept for the Apgujeong District 4 reconstruction project. It appears the company fully accepted the association's request in order to secure the symbolic status of Apgujeong. A Samsung C&T Corporation representative said, "'The Cullinan Apgujeong' is a name that reflects the design concept of Apgujeong as a jewel," adding, "The official name of the complex will ultimately be decided after collecting opinions from association members and a vote at the general meeting." If the complex is officially named as per the concept, it will mark the first time Samsung C&T Corporation undertakes a general apartment construction project without using the "Raemian" brand.

Hyundai Engineering & Construction is also showing signs of abandoning its high-end brand "The H" in favor of returning to the classic name "Apgujeong Hyundai" for Apgujeong District 2, for which it is the contractor. The company has even launched a dedicated website under the name "Apgujeong Hyundai," emphasizing both the location and the original image of "Apgujeong Hyundai Apartments." Last year, Hyundai Engineering & Construction filed multiple trademark applications incorporating "Apgujeong," such as "Apgujeong Hyundai" and "Apgujeong 現代."

The competition for the use of "Apgujeong" is fierce even in Apgujeong District 5, the only section among the six districts undergoing competitive bidding. Hyundai Engineering & Construction has proposed "Apgujeong Hyundai Galleria," while DL E&C has put forward "Acro Apgujeong," and the two companies are currently in a head-to-head competition.

Both companies have staked everything on incorporating "Apgujeong" into the complex name, rather than using their own brands. Hyundai Engineering & Construction has even brought in the Galleria Department Store, a symbol of Apgujeong-dong, to evoke a sense of belonging among residents. The head of a local real estate agency in Apgujeong-dong commented, "Homeowners in this neighborhood want the symbolic value of the name 'Apgujeong' rather than a standardized high-end brand assigned by the construction company. In the case of District 3, the construction cost alone exceeds 3 trillion won. The scale is such that the construction company inevitably becomes the subordinate party."

Originally, Apgujeong-dong was a sandy riverside area along the Han River. In the early 1970s, Hyundai Engineering & Construction reclaimed public land to store heavy equipment for the construction of the Gyeongbu Expressway. When the first and second phases of Apgujeong Hyundai were offered for sale in 1976, they were unpopular. At a time when private cars were rare, few people wanted to buy apartments across the river from Gangbuk. However, by the early 1980s, after the seventh phase was completed and residents moved in, the area's atmosphere had changed. Executives from Hyundai Group settled in first, followed by entrepreneurs, professionals, and celebrities, firmly establishing Apgujeong as Korea's "original wealthy neighborhood."

In December last year, a 183-square-meter (61 pyeong, 12th floor) unit in Apgujeong District 2’s Shin Hyundai (Hyundai 9th, 11th, and 12th phases) was sold for 12.8 billion won, setting a record. This translates to 209.84 million won per pyeong, outpacing the unit prices of newly built flagship complexes such as Nine One Hannam and Raemian One Bailey in Banpo.

This is not the first time a construction company’s brand has been rejected in Apgujeong. In the early 2000s, DL E&C remodeled Hyundai Apartment Building 65 in Apgujeong District 3, but due to opposition from residents, the "Acrovill" logo was not installed on the exterior. Real estate information sites mostly list it as "Hyundai Building 65," or in some cases, "Daelim Acrovill" appears in parentheses.

An official from a major construction company noted, "In other neighborhoods, the contractor's brand increases the value of a complex, but in Apgujeong, the complex name builds the brand for the contractor. It seems that Apgujeong-dong residents do not prefer any particular contractor’s brand."

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