Hyundai E&C and DL E&C have launched a final push to win the redevelopment contract for Apgujeong District 5, the only zone in the upscale Seoul neighborhood where a competitive bidding race remains. Both firms have opened promotional centers to court union members with offers on construction costs, interest rates and detailed terms, while picking apart their rival's proposals to highlight their own advantages.
According to the redevelopment industry on the 19th, DL E&C and Hyundai E&C have been operating promotional centers for Apgujeong District 5 since the 16th, focusing on showcasing their strengths to union members. Key comparison points include construction costs, financing terms, Han River views, premium design, construction timelines and project profitability.
DL E&C, which is bidding only for District 5 among the Apgujeong redevelopment zones, stressed that it would concentrate all its capabilities to deliver a more competitive product than other districts. Hyundai E&C, which has already won District 2 and is on the verge of securing District 3, said it would extend the legacy of "Apgujeong Hyundai" to District 5, focusing on maximizing synergy.
Because the terms offered by the two sides differ, so do their claims and interpretations. The Han River view is a prime example. Both companies designated the three buildings in the first row along the river as the lowest in height, the second row as the tallest, and placed the highest tower at the center. However, the configuration and design of the first row differ significantly. DL E&C arranged three buildings diagonally. Lee Kyung-min, head of DL E&C's architectural design team, said, "We angled the front diagonally so that every household has a view of the Han River," adding, "The river-facing frontage of the three first-row buildings spans 207 meters, compared with about 85 meters for Hyundai E&C." DL E&C explained that it placed nine units across the three buildings—four, one and four respectively—increasing the number of units with Han River views compared with Hyundai E&C's 3-2-3 arrangement of eight units.
Hyundai E&C countered that DL E&C's building layout would leave some units without a direct river view. Park Sung-ha, head of Hyundai E&C's Apgujeong redevelopment project team, rebutted, "Due to building interference and angles, 167 units have no Han River view," adding, "DL E&C's claim that every unit has a river view is false."
Hyundai E&C also took issue with DL E&C's proposed 57-month construction period. "Apgujeong District 5 has a high proportion of bedrock, requiring more time for underground work," Park said. "The construction period will inevitably be extended later." DL E&C rebutted, "Compared with the original 63 months, we can cut underground work by 3.5 months and aboveground work by 2.5 months," adding, "These figures were calculated meticulously through monthly process simulations using Building Information Modeling (BIM)." DL E&C explained that reorganizing construction plans around soil sections rather than bedrock can shorten the timeline.
The two sides also clashed over DL E&C's plan to expand commercial space to maximize profits. DL E&C said expanding retail floor area would boost sales revenue, and that it would directly absorb any unsold portions, leaving the union with no burden. Hyundai E&C, meanwhile, emphasized its advantages on a floor-by-floor basis. The areas of the first aboveground floor and the first and second underground floors are 528, 8,636 and 1,610 square meters for Hyundai E&C, compared with 162, 9,662 and 6,904 square meters for DL E&C. "The deeper underground you go, the lower the value," Park said. "We plan to connect the second basement directly to Galleria Department Store, whereas DL E&C has no clear plan for how to arrange its commercial facilities."
The two sides also offered competing claims on financial terms such as interest rates and construction costs. DL E&C said it had cut its fixed construction cost below Hyundai E&C's by shortening the build period, and touted superior terms such as a 150% loan-to-value (LTV) ratio and a seven-year deferral on contribution payments after move-in. Hyundai E&C countered that the scope of guarantees differs and accused DL E&C of failing to fully disclose certain terms to the union. Apgujeong District 5, where Hanyang Apartments Phases 1 and 2 will be redeveloped into eight buildings of up to 68 stories with 1,397 units, will hold a general meeting on the 30th to select a contractor.
