Company targets integrated review completion this year, project implementation approval in 2027

Apgujeong Zone 5 association head Ahn Yang-ho (center), Hyundai Engineering & Construction Executive Director Shin Guk-hyeon (left) and Hanwha Corp Executive Director Woo Jae-hee (right) pose after signing the construction contract. [Hyundai E&C]
Apgujeong Zone 5 association head Ahn Yang-ho (center), Hyundai Engineering & Construction Executive Director Shin Guk-hyeon (left) and Hanwha Corp Executive Director Woo Jae-hee (right) pose after signing the construction contract. [Hyundai E&C]

Hyundai Engineering & Construction has signed a construction contract with the reconstruction association for Apgujeong Zone 5 in Gangnam-gu, Seoul, about five months after being selected as the project's contractor in May. The company is now accelerating follow-up procedures with the aim of completing an integrated review before year's end.

Hyundai E&C announced Thursday that it had concluded the contract with the Apgujeong Apartment District Special Planning Zone 5 Reconstruction and Improvement Project Association.

The Zone 5 reconstruction project will replace the Hanyang 1st and 2nd phase apartment complexes at 490 Apgujeong-dong, Gangnam-gu with a residential development comprising eight buildings of up to 68 above-ground floors and six below-ground floors, totaling 1,397 units, along with ancillary welfare facilities.

Since being selected as contractor on May 30, Hyundai E&C had been simultaneously negotiating the construction contract with the association and preparing for regulatory approvals. Wrapping up the contract roughly five months after that selection lays the groundwork for the company to advance the permitting process.

Zone 5 is currently working through permitting steps including a revision to the improvement plan and an integrated review. The association is targeting project implementation plan approval in 2027 and management and disposal plan approval in 2028, following completion of the integrated review this year.

Hyundai E&C had earlier signed a construction contract for Apgujeong Zone 2 in March. With contracts now in place for both Zone 2 and Zone 5, the company is expanding its footprint in the broader Apgujeong reconstruction effort.

Hyundai E&C said it plans to draw on its experience across Apgujeong zones 2, 3 and 5 to support the permitting process and overall project execution going forward.

"The pace of progress and stable project management are the key factors that will determine the future value of the Apgujeong reconstruction," a Hyundai E&C official said. "We will maximize the synergies between zones and leverage the experience and technical expertise we have built up in the area to improve the efficiency of project execution."


quq@heraldcorp.com