POSCO Engineering & Construction is on the verge of securing the remodeling project for the Sangnok Tower apartments in Gwangjang-dong, Seoul.
According to the Sangnok Tower remodeling association on the 18th, following the bid closure for selecting the construction company for the Sangnok Tower remodeling project on Nov. 29, only POSCO Engineering & Construction participated.
The Sangnok Tower remodeling project involves transforming the existing Sangnok Tower apartments in Gwangjang-dong, Gwangjin-gu, Seoul, into a new apartment complex with 1 building, consisting of 4 basement floors and 24 above-ground floors, totaling 229 units (29 units for general sale).
The Sangnok Tower remodeling project faced many ups and downs. Previously, the association selected HDC Hyundai Development Company as the construction company in December 2020. However, after the collapse of the I-Park in Gwangju in January 2022, the Sangnok Tower remodeling association terminated the construction contract with HDC Hyundai Development Company in August of the same year.
Even after that, the ongoing deterioration of the construction market and issues with project financing led to difficulties in selecting a construction company. Several construction companies, including DL E&C, SK Eco Plant, and Hanwha Engineering & Construction, expressed interest, but both rounds of bids for selecting a construction company were unsuccessful. Subsequently, with POSCO Engineering & Construction participating in the third bid conducted last month, the project gained new momentum after 2 years and 4 months since terminating the contract with HDC Hyundai Development Company.
POSCO Engineering & Construction proposed a remodeling construction cost of 12 million won per 3.3 square meters to the Sangnok Tower association.
On Jan. 11 next year, the Sangnok Tower association plans to decide on whether to conclude a direct contract with POSCO Engineering & Construction through a general meeting.
The chairperson of the Sangnok Tower remodeling association said, “We will hold a meeting to select the construction company in January and aim to accelerate the remodeling project with a goal to move in within the year.”