The reconstruction project for Mok-dong New Town, regarded as the "last big catch" in Seoul's redevelopment market, is hitting its stride. As reconstruction in Mok-dong—considered the largest among the so-called "Ap-yeo-mok-seong" areas referring to Apgujeong, Yeouido, Mok-dong, and Seongsu-dong—picks up speed, observers say a full-fledged competition has begun for contracts totaling 30 trillion won. Major builders have already begun behind-the-scenes jockeying.
According to the redevelopment industry on the 26th, Mok-dong Complex 4 secured the legal basis to push forward its reconstruction after receiving approval to establish a cooperative from the Yangcheon District Office on the 21st. It completed all steps within six months since the designation as a redevelopment zone in Aug. last year and the approval of the promotion committee in Nov. Considering that it typically takes two to three years from zone designation to cooperative approval, the pace is notably fast.
Among the 14 complexes in Mok-dong New Town, the number that have obtained approval to establish a cooperative has increased to four. Starting with Complex 6 in May last year, Complex 12 and Complex 8 followed, and now Complex 4 has joined. The fastest-moving site is Complex 6. It plans to hold a general meeting next month to select a contractor, with DL E&C chosen as the preferred negotiating partner. Next, Complex 4 plans to publish a contractor bid notice in July, and Complex 8 in Aug., aiming to complete contractor selection within the year.
Of the remaining 10 complexes, eight are pursuing reconstruction through a trust structure. In trust-based reconstruction, the cooperative pays a portion of development gains as fees and entrusts implementation and management across the project to a professional trust company, a model whose advantage is speed. For the eight complexes, designation and public notice of the trust company as project implementer have been completed, and Complexes 5, 9, 10, 11, 13, and 14 are aiming to select a contractor in the second half of this year.
That means 10 complexes will select contractors this year alone, and with the big stage set, builders are busy. In particular, major builders are focusing on Mok-dong Complex 7.
Mok-dong Complex 7 sits at a prime location right by Mok-dong Station on Subway Line No. 5. It is also close to highly sought-after school districts in Mok-dong, such as Mokun Elementary and Mokun Middle, giving it strong end-user demand. Its existing floor area ratio is relatively low at around 125%, making it a complex with strong business viability.
An official at a major builder said, "Complex 7 has average land shares in the 20-pyeong range, so its business viability is strong," adding, "even amid the recent surge in construction costs, it is one of the few complexes where refunds can be expected."
According to the redevelopment plan, if an owner of an exclusive 89.05 square meters moves to a similar size of exclusive 84.99 square meters, the expected refund is 275.62 million won. Compared with the increasing additional contributions at major Seoul reconstruction sites due to higher construction costs, this is seen as unusual.
Mok-dong Complex 7 plans to hold a founding general meeting for the cooperative on June 7 and then apply for approval to establish the cooperative. Major builders such as Samsung C&T, Hyundai Engineering & Construction, GS Engineering & Construction, DL E&C, and POSCO E&C are reportedly showing interest.
Other complexes also have a high likelihood of competitive bidding. Industry watchers expect that, beyond high-end design competition, financing terms, construction cost stability, and brand value will emerge as key variables in the bidding war. A redevelopment industry official said, "Mok-dong is a flagship reconstruction area in southwestern Seoul that combines location, schools, and project scale," adding, "competition among builders to secure construction rights will only intensify."