As the selection meeting for the construction company for the integrated reconstruction of Shinbanpo 19 and 25 approaches, competition between Samsung C&T and Posco E&C is heating up. Samsung C&T is promoting its 'Raemian' brand and a design that highlights views of the Han River, while Posco E&C is focusing on its high-end brand 'Otier' and financial support for union members to sway votes.
According to the construction industry on May 29, the Shinbanpo 19 and 25 integrated reconstruction union will hold a meeting on May 30 to finalize the construction company. This project involves the integrated reconstruction of Shinbanpo 19 and 25 and Hanshin Jinil and Jamwon CJ in the area of 61-1, Jamwon-dong, Seocho-gu, Seoul. It will consist of seven buildings with 614 units, rising from four underground floors to 49 above ground, with an estimated construction cost of about 443.4 billion won.
At a briefing held in February, nine construction companies attended. The final bidding has since narrowed down to a two-way competition between Samsung C&T and Posco E&C.
Samsung C&T is emphasizing its extensive construction experience in the Banpo area. It highlights its work on major projects like Raemian One Bailey and Raemian One Pentas, promoting the idea of completing a 'Banpo Raemian Town.'
A key selling point is the view of the Han River. Samsung C&T has proposed a design that offers 'permanent Han River views,' reflecting developments from nearby Shinbanpo 16 and 27 reconstruction projects. According to Samsung C&T, approximately 87% of the 616 units, or 533 units, will have views of the river. The types of views include panoramic views for 163 units, wide views for 128 units, and partial views for 242 units.
Posco E&C is countering with financial conditions. It has proposed the name 'The Banpo Otier' for the project. Posco E&C is attempting to differentiate itself from Samsung C&T by emphasizing conditions that reduce the financial burden on union members.
The most significant aspect is the financial support for union members. Posco E&C has proposed a financial support package of 200 million won per unit for all 446 households, totaling 89.2 billion won. They promise early support after the construction company is selected, aiming to alleviate the financial burden on union members.
However, there are concerns regarding the legality of the financial support conditions. Posco E&C maintains that these conditions have been officially proposed after review by the Seocho District Office and the union's board and delegates. In contrast, discussions within the union regarding the feasibility and legal risks of the financial support have reportedly continued as the meeting approaches.
This bidding competition also has a 'rematch' aspect, as Samsung C&T and Posco E&C previously faced off in the redevelopment project of Busan Citizens Park in 2024, where Posco E&C secured the construction rights over Samsung C&T.
Industry insiders view the Shinbanpo 19 and 25 project as significant, not because of its size but due to its prime location along the Han River and within the Banpo living area. They suggest that the outcome of this bidding could influence the strategies of major construction companies in ongoing competitive reconstruction projects in the Gangnam area.
An industry source stated, "Samsung C&T is emphasizing brand and design stability, while Posco E&C is focusing on financial support conditions, which may lead to differing criteria for union members' decisions. The atmosphere is so competitive that it is difficult to predict the outcome even until the meeting day."
* This article has been translated by AI.
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