"Zero Contribution, 120% Han River View" POSCO E&C Secures Overwhelming Edge in Shinbanpo Bidding War

POSCO E&C Unveils Groundbreaking Terms at Shinbanpo 19th and 25th Joint Briefing
Fixed Construction Cost of 9.8 Million Won per Pyeong and Ultra-Low 1.82% Interest Rate
“Unprecedented Offer” Outshines Samsung C&T
Association Members Respond to Proposal Focused on Practical Benefits

As competition heats up for the Shinbanpo 19th and 25th apartment reconstruction projects in Jamwon-dong, Seocho-gu, Seoul, POSCO E&C appears to be solidifying its lead by offering an unprecedented set of business terms that outshine rival Samsung C&T.

The joint briefing session for the selection of the construction company held on the 13th is underway. Photo by POSCO E&C

At the joint briefing session for contractor selection held on May 13, POSCO E&C went beyond simply presenting its vision and made a 'definitive proposal' with legal accountability, directly targeting the votes of association members. The essential promises highlighted by POSCO E&C were 'zero extra contribution' and 'maximized Han River views.'

The main area of interest centered on construction costs and financial terms. POSCO E&C proposed a fixed construction cost of 9.8 million won per 3.3 square meters (per pyeong), pledging to maintain this amount until move-in without any increase regardless of inflation before or after construction begins. In contrast, Samsung C&T suggested an inflation-indexed approach, leaving room for possible future increases in construction costs.

The financial benefits are also striking. POSCO E&C announced it would apply a record-low interest rate of 1.82% per annum (CD -1%) to the entire project cost and would provide each household with an early financial support payment of 200 million won immediately after being selected as the contractor. This is seen as the most attractive option for association members facing cash flow issues due to lending restrictions.

In terms of design, POSCO E&C proposed a high-end strategy that maximizes the site’s Han River frontage. The company introduced a special layout enabling 120% of the association members to have direct river views, and planned a 250-meter-long sky bridge to increase the value of the complex. This aims to give the development a symbolic status surpassing even nearby Apgujeong reconstruction projects and to maximize future premiums for residents.

The company’s confidence is also evident in project speed and sales methods. POSCO E&C pledged to maximize sales profits through 'definitive post-construction sales' without separate negotiations with the contractor, and provided a concrete timeline—49 months for construction and 6 months for demolition—guaranteeing rapid move-in for residents.

An industry insider commented, "This bidding war has become a contest over who can guarantee more certain economic benefits, beyond mere brand power," adding, "POSCO E&C’s proposal, which demonstrated a definitive advantage in all aspects—construction costs, financing, and project speed—appears to have sent a strong message to association members."

Meanwhile, based on the results of this joint briefing session, the Shinbanpo 19th and 25th reconstruction associations are expected to convene a general meeting soon to select the final contractor.

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