This article was displayed on the ChosunBiz CSR site at 11:04 a.m. on Mar. 23, 2026.
Hyundai Motor Group, which is pushing to build a new headquarters on the former Korea Electric Power Corporation site in Samseong-dong, Gangnam-gu, Seoul, has set the aggregate cap of public contributions payable to the Seoul Metropolitan Government at 2.56 trillion won. It set the amount by conservatively reflecting in accounting the risks that could arise going forward, such as increases in raw material prices, labor costs, and land prices due to a prolonged construction period.
This is about 29% more than the 1.9827 trillion won in public contribution aggregates that the city announced early this year. It means roughly 600 billion won could be additionally used for public contributions.
According to a compilation of ChosunBiz reporting on the 23rd, Hyundai Motor Group set the total cap on public contributions related to the Global Business Complex (GBC) construction at 2.5604 trillion won. Of this amount, Hyundai Motor, a key affiliate of Hyundai Motor Group, will shoulder 1.4082 trillion won, with Hyundai Mobis and Kia bearing 640.1 billion won and 512.1 billion won, respectively.
A Hyundai Motor Group official said, "Taking into account inflation and changes in construction costs through completion, we set the public contribution at the mid-2 trillion won level." The target completion for the GBC project is the end of 2031.
The newly confirmed cap on public contributions is 29.14% higher than the publicly known public contribution amount. The Seoul Metropolitan Government
A Seoul Metropolitan Government official said, "1.9827 trillion won was the amount set as of May 2016, when the GBC-related agreement was signed," and noted, "The actual public contributions to be invested in the future may change."
Public contributions are a system in which a private project operator returns part of development gains to the public in exchange for benefits such as changes in zoning or higher floor area ratios during the process of promoting a large-scale development project. Introduced by Seoul Mayor Oh Se-hoon in 2009 as the first among local governments nationwide, it is a mechanism to return development gains to the local community and reduce controversy over preferential treatment.
Hyundai Motor Group's cap on the pledged amount of public contributions is 46.38% higher than the initial negotiated amount. Initially, in 2016, Hyundai Motor Group planned to build the GBC as a single 105-story tower. The plan also included creating an observation deck on the upper floors and opening it to the public. Accordingly, the Seoul Metropolitan Government agreed to change the zoning and raise the floor area ratio from 250% to 800% in exchange for 1.7491 trillion won in public contributions.
However, when Hyundai Motor Group revised the plan in Feb. last year to split the construction into three buildings, each 49 stories high, an additional 233.6 billion won in previously reduced public contributions was added. With future inflation and other factors reflected, the aggregate cap increased to the mid-2 trillion won range.
The Seoul Metropolitan Government is investing the secured public contributions in various urban infrastructure projects. They are being used for projects such as the Yeongdong-daero underground space complex development, the remodeling of Jamsil Main Stadium, road expansion to ease traffic congestion, and the creation of waterfront spaces along the Han River and Tancheon.