The briefing for the selection of a contractor for the redevelopment of Seongsu 2 District in Seoul saw attendance from DL E&C and IPAPK Hyundai Engineering, marking the start of a competition for a project valued at approximately 2 trillion won. However, IPAPK Hyundai Engineering plans to assess the project's viability before deciding whether to participate in the bidding, leaving the actual competitive bidding outcome uncertain.
Representatives from DL E&C and IPAPK Hyundai Engineering attended the briefing held on July 15 at 2 p.m. The consortium had announced the bidding notice on July 7, with the bidding process set to continue until 3 p.m. on August 31.
Following the briefing, the head of the Seongsu 2 District redevelopment consortium stated, "Both DL E&C and IPAPK Hyundai Engineering attended the briefing, and there are currently no changes to the schedule."
The Seongsu 2 District redevelopment project aims to construct up to 65 floors with 2,381 housing units and community facilities in the area of 506 Seongsu-dong 2-ga, Seongdong-gu, Seoul. The estimated construction cost is about 2.1 trillion won, making it the second largest project among the four districts in the Seongsu Strategic Maintenance Zone, following Seongsu 1 District.
The bidding will be conducted through a general competitive bidding process, and joint bidding is not permitted. The bid guarantee amounts to a total of 100 billion won, comprising 70 billion won in cash and 30 billion won in performance bond insurance.
This bidding process is a reinitiation after last year's project was canceled. During the first bidding last year, a competitive scenario between DL E&C and POSCO E&C was anticipated, but controversy between the former consortium head and a POSCO E&C public relations officer led to POSCO E&C withdrawing from the bidding, resulting in a failure to secure a contractor. Following a prolonged hiatus due to a leadership vacuum, the new executive team has resumed the contractor selection process this year.
IPAPK Hyundai Engineering, which had previously taken a cautious stance, attended the briefing and is now reviewing the project's viability. However, attendance at the briefing is merely a procedural step to qualify for bidding, and the company has not yet made a decision on whether to submit a bid. An IPAPK Hyundai Engineering representative stated, "It is too early to comment on our participation in the bidding at this stage."
Industry insiders express skepticism about the likelihood of a competitive bidding process. One industry source noted, "Attendance at the briefing is also a means to secure future bidding qualifications, and ultimately, it is possible that DL E&C may bid alone."
DL E&C has been focusing on Seongsu 2 District as a strategic business site. A DL E&C representative commented, "We are actively considering the Seongsu 2 District project." With this year’s urban maintenance project bidding results limited to Mokdong 6 District, the company is expected to invest significant effort into securing the Seongsu 2 District project.
Similarly, IPAPK Hyundai Engineering has not secured any urban maintenance project bids in the first half of the year. Success in winning the Seongsu 2 District project could allow the company to achieve more than half of its annual urban maintenance bidding target of 3.25 trillion won, while also enhancing its brand competitiveness through a landmark project along the Han River.
Meanwhile, the Seongsu Strategic Maintenance Zone is a key redevelopment project in Seoul, comprising four districts along the Han River, with a total project cost of 8 trillion won and approximately 9,500 housing units planned. The contractors for districts 1 and 4 have already been selected, with the contractor selection process ongoing for districts 2 and 3.
* This article has been translated by AI.
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