Kolon Global won the redevelopment project in Sangbong-dong, Jungnang-gu, Seoul, setting a new record for the largest maintenance project order since the company was founded. It plans to build a 49-story landmark complex around Sangbong Station, where expectations are rising for the opening of the Metropolitan Express Railway (GTX)-B line.
According to the construction industry on the 26th, Kolon Global signed a contract on the 21st for the "Sangbong 7 Redevelopment Promotion Zone Urban Environment Maintenance Project (Sangbong 7 Zone)." The total construction cost is 425.8 billion won. This is about 15.9% of last year's sales on a consolidation basis and the largest order amount for a single maintenance project since the company's founding.
The project site covers 14,996.3 square meters around 88-52, Sangbong-dong, Jungnang-gu, Seoul. It is within 500 meters in a straight line from Sangbong Station, an interchange for Seoul Subway Line 7, the Gyeongchun Line, and the Gyeongui-Jungang Line, and the GTX-B line is scheduled to open in 2030. Nearby are Costco, Homeplus Co., and CGV, and it is also close to the Jungnangcheon Stream and Mangusan.
Kolon Global plans to build 841 apartment units, 30 officetel units, and ancillary welfare facilities from seven basement levels to 49 above ground. The construction period is 60 months from the actual groundbreaking date. The apartment brand will be "Kolon Hanulchae."
Sangbong 7 Zone completed its architectural review in 2023 and conducted a public inspection of changes to the project implementation plan from Apr. 2 to Apr. 16. Jungnang-gu is reviewing the change to the project implementation approval. A Jungnang-gu official said, "There are some changes between the plan reviewed in 2023 and the current development plan, and we are reviewing them," adding, "If quick, we expect approval for the changes in June."
This order also surpassed Kolon Global's previous record for the largest maintenance project. The previous largest was the "Seongwon Towol Grand Town Apartment Remodeling Project" in Changwon, South Gyeongsang, won in 2022. At that time, Kolon Global participated as part of a consortium with POSCO E&C, Hyundai Engineering & Construction, and Hyundai Engineering, and Kolon Global's share of the total construction cost was about 377.9 billion won.
A company official said, "Sangbong 7 Zone is a maintenance project that set a new record for the largest contract since our founding," adding, "In particular, it is significant that we won a large-scale maintenance project in Seoul."
Kolon Global has also been extending its recent earnings recovery. Affected by the construction downturn, it posted an operating loss in 2024, but last year it returned to the black with sales of 5.8511 trillion won and operating profit of 63.8 billion won. In the first quarter of this year, it continued the trend of improved profitability with sales of 631.2 billion won and operating profit of 22 billion won.