Hyundai E&C eyes 8th straight top ranking in urban redevelopment with Apgujeong wins

First-half orders reach 7.7 trillion won, 73% of last year's full-year total; selective bidding under 'The H' brand targets 12 trillion won for the year

Hyundai Engineering & Construction headquarters. [Herald DB]

Hyundai Engineering & Construction is chasing a new record in the urban redevelopment market. Last year, the company became the first domestic construction firm to surpass 10 trillion won ($6.47 billion) in redevelopment orders, claiming the top industry ranking for seven consecutive years. With a string of wins in the Apgujeong reconstruction projects this year, the company is now within reach of an eighth straight title.

According to industry sources Friday, Hyundai E&C has secured a series of major projects this year: the Gunpo Geumjeong 2 zone redevelopment, the Singil 1 zone public redevelopment, and the Apgujeong 3 and 5 zone reconstruction projects. Its cumulative order backlog stands at 7.6947 trillion won — about 73 percent of last year's full-year total of 10.5105 trillion won. Industry observers say the first-half performance alone signals an overwhelming presence in the market.

The groundwork laid for an "Apgujeong Hyundai Town" has drawn particular attention. Hyundai E&C built the Apgujeong Hyundai apartment complex during the Gangnam development boom of the 1970s, helping reshape South Korea's residential culture. The complex became a symbol of large-scale development and upscale urban living, widely regarded as the landmark residential project that heralded the Gangnam era.

Having won the Apgujeong 2 zone reconstruction contract last year, Hyundai E&C added zones 3 and 5 this year, cementing an unrivaled position in the area. The builder that originally created Apgujeong has now been chosen to rebuild it. "Hyundai E&C's Apgujeong wins are being described not merely as securing a contract, but as a 'return of heritage,'" an industry official said.

For the Apgujeong 3 zone, Hyundai E&C put forward the vision "OWN THE ONE — the one unchanging value," while for zone 5 it proposed "OWN THE NEW." The slogans signal an ambition that goes beyond replacing aging apartments: to carry forward the identity of Apgujeong as a symbolic residential address and set a new standard for urban living.

Apgujeong 3 zone carries particular symbolic weight in terms of scale. The project will reconstruct Hyundai apartment phases 1 through 7 and phases 10, 13 and 14, along with Daelim Villat, in the Apgujeong-dong area of Gangnam-gu, Seoul. The resulting complex will rise up to 65 floors above ground with seven basement levels, comprising 5,175 units in total. At 5.5610 trillion won, the construction cost makes it the largest single urban redevelopment project on record.

Hyundai E&C's order wins have also drawn attention to the urban redevelopment strategy the company has pursued. Leading with its high-end brand The H, Hyundai E&C has applied a selective bidding approach centered on prime project sites.

By focusing on sites that offer both strong project viability and brand value, the company has delivered results at major developments including Banpo Jugong phases 1, 2 and 4, Hannam 3 zone, and the Apgujeong reconstruction projects, steadily expanding its dominance in the urban redevelopment market.

A rendering of the Apgujeong 3 zone project proposed by Hyundai Engineering & Construction. [Hyundai E&C]

Hyundai E&C set a redevelopment order target of more than 12 trillion won at the start of this year. With first-half orders already exceeding 7 trillion won and major bidding contests lined up for the second half — including large projects in Mokdong and other key sites in the greater Seoul area — industry observers expect the company to surpass the record it set last year.

"The construction company that built Apgujeong in the past is now redrawing its future through the latest round of Apgujeong contracts," an industry official said. "How far Hyundai E&C can push its order tally is the key thing to watch."

Meanwhile, Hyundai E&C is gearing up to pursue the Mokdong reconstruction project, where construction costs alone are estimated to reach 30 trillion won. The company has been operating a promotional center in the Mokdong area to broaden contact with association members.

lucky@heraldcorp.com