"To Ease Members' Burden" Daewoo E&C Bids 46 Billion Won Less in Seongsu Redevelopment Construction Cost

by Choi Daeyul

Published 10 Feb.2026 09:53(KST)

Daewoo Engineering & Construction announced on the 10th that it had set the construction cost at 1.3168 trillion won when participating in the bidding for the Seongsu District 4 redevelopment project. This is 46 billion won lower than the 1.3628 trillion won in projected construction costs set by the association.

The company proposed a project financing interest rate equal to the negotiable certificate of deposit (CD) rate minus 0.5%. Applying the CD rate of 2.75% as of the 4th of this month, the financing rate comes to 2.25%. The company explained that at this level, the rate is effectively at a record low, which is rarely seen in recent redevelopment projects.

The company stated that by lowering both the construction cost and the financing rate, it can reduce the financial burden on association members. It also eased the pressure of construction cost increases caused by inflation. While redevelopment projects normally reflect the inflation index based on the bid closing date, Daewoo Engineering & Construction instead decided to apply it based on the point in time when the construction contract with the association is signed.

Deoseongsu 520 bird's-eye view. Provided by Daewoo Engineering & Construction

In addition, the company included a condition under which it will bear the full amount of inflation occurring during the 12 months following the contract. The company said that the cost-saving effect from this measure is estimated at around 22.5 billion won. After the 12-month grace period, the lower of the Construction Cost Index and the Consumer Price Index will be applied to minimize the increase in construction costs.

A Daewoo Engineering & Construction official said, "Although we bid 46 billion won below the construction cost projected by the association, we actually improved quality and product competitiveness," adding, "We placed top priority on delivering tangible, real benefits that association members can feel."

In the bidding to select a contractor for the Seongsu District 4 redevelopment project, which closed the previous day, Daewoo Engineering & Construction and Lotte Engineering & Construction participated. Daewoo proposed the complex name Deoseongsu 520, inspired by the 520-meter stretch of Han River view line adjacent to the project site.