Exclusive: Hyundai E&C seeks 120.6 billion won increase in construction costs for Yeouido Hanyang Apartment, with project period extended by 8 months

Hyundai Engineering & Construction, the contractor for the reconstruction of Yeouido Hanyang Apartment Complex in Seoul, has requested an increase of 120.6 billion won in construction costs.
According to the redevelopment industry on the 9th, Hyundai E&C recently sent an official letter to KB Real Estate Trust, the project owner for the Yeouido Hanyang Apartment reconstruction, requesting that the contract amount be raised from 774 billion won to 894.7 billion won. Reflecting this increase, the construction cost per 3.3 square meters would reach about 9.985 million won, up 21.1% (1.74 million won) from 8.245 million won at the time the contract was signed in October 2024.
The push to raise construction costs reflects design changes and other factors. During the approval process for the reconstruction project implementation plan, the total floor area was reduced by 14,134.53 square meters, from 310,347.88 square meters to 296,213.35 square meters. At the same time, the scale changed from 5 basement levels and 53 above-ground floors to 5 basement levels and 57 above-ground floors, adding four floors above ground. The number of units also shifted from 956 apartment units and 104 officetel units to 992 apartment units and 60 officetel units, meaning 36 more apartments and 44 fewer officetels. Hyundai E&C added that "the underground floor area has been reduced, and eco-friendly design features have been incorporated."
The construction period has also been extended from 62 months to 70 months, an increase of eight months. As a result of this extension, the move-in schedule is expected to be pushed back somewhat.
Yeouido Hanyang Apartment was completed in 1975. It passed a safety inspection in 2017 and cleared the Seoul Metropolitan Government’s integrated review in 2024. The project obtained approval for the implementation plan in October last year, and the complex is slated to be renamed "The H Yeouido First."
Following approval of the project implementation plan, Hanyang Apartment is now preparing for approval of its management and disposal plan. Together with the nearby Daegyo Apartment Complex, it is considered one of the fastest-moving reconstruction projects in Yeouido. Sibeom Apartment Complex and Gongjak Apartment Complex, which have passed the integrated review, are following behind. There are 15 redevelopment and reconstruction projects underway in Yeouido, and most plan to transform existing residential complexes into high-rise developments of 47 to 59 stories, signaling a major change to the Yeouido skyline.

act@fnnews.com Choi Ah-young Reporter