Hyundai Engineering & Construction and DL E&C are locked in a fierce bidding war to be chosen as the builder for Apgujeong District 5, cited as the biggest battleground among Gangnam-area reconstruction projects in Seoul. For the Apgujeong redevelopment, a considerable number of key districts have already chosen a builder or are coalescing around a single candidate. In contrast, District 5 is effectively the last battlefield where multiple major builders are going head-to-head, making it the "biggest decider." The builder selection is set to be decided in late May.
According to the construction industry on the 30th, Apgujeong District 5 (Hanyang 1 and 2) is a project to reconstruct the existing 1,232 households into about 1,400 households, including supertall buildings of more than 60 stories. The total construction cost is estimated at around 1.5 trillion won. The general meeting to select the builder is scheduled for May 30, and the final builder will be decided through a vote by association members.
The Apgujeong redevelopment is a mega-project pushed across six districts, totaling about 11,000 to 12,000 households. Among them, Districts 3, 4 and 5 are considered core sections, with construction costs alone reaching into the 10 trillion won range. In particular, District 5 sits in a prime riverside location near Apgujeong Rodeo Station and Galleria Department Store, serving as a central axis in both symbolism and business potential.
Other districts have largely settled their builder lineups. In District 2, Hyundai Engineering & Construction has been selected as the builder and the project is the most advanced, while in District 3, a sole-source win by Hyundai Engineering & Construction is also likely. District 4 appears to be moving toward a negotiated contract with Samsung C&T. In contrast, Districts 1 and 6 are relatively slow. In this context, District 5 is the only competitively bid district and is viewed as a key inflection point that will shape the overall landscape of the Apgujeong redevelopment.
Industry sentiment so far is that it is a "neck-and-neck race with an edge for Hyundai Engineering & Construction." The biggest backdrop is the preference for the "Hyundai" brand across the Apgujeong area and expectations for integrated development. The existing Apgujeong Hyundai Apartment carries strong symbolism, and depending on the outcome in District 5, there is analysis that not a few association members expect synergy between complexes and a long-term premium by grouping Districts 2, 3 and 5 into a single "Apgujeong Hyundai Town."
Building on this trend, Hyundai Engineering & Construction is putting design and a future living concept at the forefront. It is emphasizing a "landmark complex" image through design proposals created with a world-renowned architecture firm, Han River views from every unit, and large-scale community facilities, while also presenting an on-demand transit (DRT) system developed with Hyundai Motor Group and robotics-based residential services, laying out a vision to design the complex like a city.
A construction industry official said, "For the Apgujeong redevelopment, there is a strong view of the entire complex as a single living area, rather than as individual districts," adding, "If key districts are grouped under the same brand, the synergy in integrated design, community and operations is significant, so not a few association members are considering that if only some districts are undertaken by a different builder, they could be excluded from such comprehensive benefits." The official added, "Given this trend, the fact that Hyundai Engineering & Construction proactively presented an integrated development strategy is having some impact."
DL E&C, meanwhile, is focusing on a "practical benefits strategy" centered on construction costs and financing terms. It proposed lowering the construction cost to 11.39 million won per 3.3 square meters, a "zero condition" that removes inflation pass-through and the additional spread, deferring assessments for up to seven years, and a 150% loan-to-value (LTV) ratio on relocation loans—terms that minimize the burden on association members. It is also highlighting improved business feasibility by adding plans to generate additional revenue through expanding commercial space.
On top of that, it has pushed differentiation by bringing forward a structure that lowers financing expenses themselves. It proposed setting the interest rate on essential project expenses at the COFIX new balance rate with a 0% additional charge, and included a structure under which it will responsibly procure design fees and maintenance project–related expenses, reducing the financial burden on association members. It also expanded relocation loans to an LTV level of up to 150% and included a plan to apply the same interest rate to additional relocation loans as to the base relocation loans.
DL E&C has focused on promoting its terms up to recently, but from May it decided to shift strategy by unveiling its design and product competitiveness. It is seeking a late-stage turnaround by emphasizing that "not only the terms but also the product is competitive," fronting collaborations with global design firms.
A DL E&C official said, "Until now, we were at the stage of publicizing our proposal around the competitiveness of the terms, but in reality, the design and product strength are also at a considerable level," adding, "Starting next week, we will release related details in sequence and pull ahead in the competition."