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 on public contributions payable to the Seoul Metropolitan Government at 2.56 trillion won. The figure was set by conservatively reflecting in accounting potential risks that could arise in the future, such as increases in raw material prices, labor costs, and land prices due to prolonged construction.
This is about 29% higher than the 1.9827 trillion won aggregate public contribution the city announced early this year. It means about 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 contribution aggregates related to construction of the Global Business Complex (GBC) at 2.5604 trillion won. Of that amount, Hyundai Motor, a major affiliate of Hyundai Motor Group, will shoulder 1.4082 trillion won, with Hyundai Mobis and Kia to bear 640.1 billion won and 512.1 billion won, respectively.
A Hyundai Motor Group official said, "Taking into account inflation and construction cost changes through completion, we set the scale of public contributions 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. A Seoul Metropolitan Government official said, "1.9827 trillion won was the amount set based on the time when we signed the GBC-related agreement in May 2016," adding, "The actual public contribution to be invested going forward could 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 increases in floor area ratio while pushing a large-scale development project. Introduced by Oh Se-hoon, the Seoul mayor, in 2009 for the first time among local governments nationwide, the mechanism aims to return development gains to the local community and reduce controversy over special favors.
Hyundai Motor Group's cap on pledged public contributions is 46.38% higher compared with the initial negotiation 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 to open to the public. In return, the city agreed to change the zoning and raise the floor area ratio from 250% to 800%, and to receive 1.7491 trillion won in public contributions.
However, when Hyundai Motor Group revised the plan in Feb. last year to build three buildings, each 49 stories high, an additional 233.6 billion won in public contributions that had been reduced was added back. Reflecting future inflation and other factors, the aggregate cap consequently increased to the mid-2.5 trillion won range.
The Seoul Metropolitan Government is investing the secured public contributions in a variety of urban infrastructure projects. They are being used for projects including the underground complex development of Yeongdong-daero, remodeling of Jamsil Main Stadium, road expansion to ease traffic congestion, and creation of riverside spaces along the Han River and Tancheon.