Mokdong Reconstruction Contractor Race Heats Up: Where Will THE H and Raemian Go?

[Financial News] The reconstruction of Mokdong New Town in Yangcheon District, Seoul, is finally gaining full momentum, and the process of selecting construction contractors is also accelerating. With all 14 complexes, from Complex 1 through 14, now officially designated as redevelopment zones, the massive project to rebuild more than 26,000 homes is expected to begin choosing contractors in stages starting this year.All 14 Complexes Now Designated as Redevelopment ZonesThe 14 complexes that make up Mokdong New Town have effectively completed the administrative procedures needed to move forward with reconstruction, as the final remaining complex recently received redevelopment zone designation. As a result, concrete schedules for selecting contractors are expected to emerge for each complex starting this year. Although the pace will differ from complex to complex, many are expected to reveal their preferred contractors before the end of the year.
Some complexes have already formed reconstruction associations and are now moving on to subsequent steps such as choosing design firms. Those that are more advanced are expected to be able to announce tenders for contractor selection in the first half of the year. The remaining complexes are also projected to finalize their key partner lineups by midyear and then begin contractor selection procedures in the second half.
Among them, Mokdong Complex 6 is regarded as the fastest-moving site in the Mokdong New Town reconstruction. It has already established an association and completed both the redevelopment plan and zone designation, putting it in a strong position to take the lead in launching the contractor selection process.
External factors are also helping to speed up the reconstruction timeline. As the International Civil Aviation Organization (ICAO) is set to apply stricter building height limits across all of Seoul, more complexes are trying to secure approvals as early as possible. Industry observers note that complexes which complete administrative procedures first will gain an advantage in contractor selection and overall project progress. Against this backdrop, the Mokdong reconstruction market is expected to see contractor selection concentrated on major complexes throughout this year.
Hyundai and Samsung Target Prime ComplexesAt the center of the bidding war for Mokdong reconstruction projects stand Hyundai Engineering & Construction and Samsung C&T Corporation. The two companies, which have long led the market in winning large-scale urban renewal contracts, are said to be focusing not on every single complex but on select prime sites with superior locations and strong symbolic value.
Hyundai E&C is expected to concentrate on large, high-profile complexes such as Complexes 7, 10 and 14, putting its high-end residential brand "THE H" at the forefront of its pitch. The strategy appears to be to maximize brand power in complexes with strong school districts, good transport links and large scale. The company is believed to be betting that securing brand visibility in major complexes will give it an edge in winning additional projects down the line.
Samsung C&T Corporation is reportedly reviewing the application of its Raemian brand to complexes such as 1, 3 and 5, which are considered to have both strong symbolic value and solid business potential. Complexes with low floor area ratios and excellent locations are being discussed as key targets, and Samsung C&T is expected to highlight Raemian’s brand reliability and stable construction capabilities as its main strengths.
Union members are also applying stricter criteria than in the past. Beyond brand power, factors such as a contractor’s creditworthiness, financial strength and capacity to provide financing support are emerging as major variables. Given the need to raise large relocation loans and the financial burden during the project period, analysts say preference is growing for contractors with robust balance sheets.
Commenting on the situation, an official in the redevelopment industry said, "Conditions vary clearly from complex to complex in Mokdong, so construction companies are strategically picking the sites that work to their advantage," adding, "As unions increasingly evaluate not only brand but also funding capacity in a comprehensive way, expectations among members are rising for the contractor selection process."
Brand Power Proven Along the Han River Belt, Now Visible in MokdongHyundai E&C and Samsung C&T, now competing for Mokdong reconstruction contracts, have already solidified their presence in major redevelopment sites along the Han River Belt. In core central Seoul areas such as Apgujeong, Banpo-dong and Hannam-dong, the two companies’ premium brands have repeatedly secured construction rights, and many observers say these track records are directly and indirectly influencing the Mokdong bidding war.
Hyundai E&C, leveraging its high-end brand "THE H," has successively won landmark projects such as Banpo Districts 1, 2 and 4, Shinbanpo 2nd Complex and the Hannam District 3 Redevelopment Zone. THE H has established itself as a symbol of upscale living in Seoul and is widely seen as having highlighted both the scarcity and prestige of the brand in large-scale reconstruction complexes. Analysts note that its presence has grown particularly strong in the so-called "premium residential belt" formed along the Han River.
Samsung C&T, meanwhile, has demonstrated its competitiveness in urban renewal by successfully winning projects such as Hannam District 4 and Raemian One Bailey in Banpo-dong with its Raemian brand. After completion, Raemian One Bailey proved the brand’s value through high market prices and strong buyer preference, while Hannam District 4 is regarded as another flagship project that has drawn significant market attention. Raemian’s key strengths are cited as its strong brand recognition, reliable construction quality and trusted after-sales service.
Given how the two builders have effectively split major redevelopment sites along the Han River between them, many expect a similar competitive structure to unfold in Mokdong. Among union members, the perception that "the brand that comes in will determine the complex’s value and premium" is already strong, and the brand power of the two companies is expected to be a decisive factor in the final contractor selections.
An industry insider predicted, "The rivalry between the two companies will continue not only in Mokdong but across Seoul’s major reconstruction sites," and added, "A strategic bidding war built around brand value and proven track records is likely to emerge as the biggest issue in this year’s redevelopment market."
en1302@fnnews.com Jang In-seo Reporter