IPARK HYUNDAI DEVELOPMENT COMPANY, having recovered its performance, sets out to expand the 'Yongsan Belt' in the Sookmyung Women's University Station area

[Financial News] IPARK HYUNDAI DEVELOPMENT COMPANY is set to expand its urban redevelopment project orders, centering on Yongsan District, Seoul.
According to the redevelopment industry on the 16th, IPARK HYUNDAI DEVELOPMENT COMPANY attended the construction site briefing for the urban renewal-type redevelopment project for long-term lease housing in the Sookmyung Women's University Station area, hosted by DAISHIN Asset Trust Co., Ltd. at the end of last month.
Five companies, including IPARK HYUNDAI DEVELOPMENT COMPANY, Dongbu Corporation, Kukdong Construction, Jeil Construction, and JIN HEUNG ENTERPRISE CO., LTD., participated in the site briefing.
Bidding will be conducted through open competition, and consortium formation is not permitted. The bid deposit is 15 billion won, and the deadline is October 8.
The Sookmyung Women's University Station Area Redevelopment is a project to construct a multi-unit residential complex and ancillary facilities at 52-6, Garwol-dong, Yongsan-gu, Seoul, consisting of five buildings ranging from six underground floors to 40 above-ground floors, with a total of 900 households. The estimated construction cost is approximately 540 billion won.
IPARK HYUNDAI DEVELOPMENT COMPANY's attendance at the site briefing is interpreted as a move to expand its urban redevelopment project orders in the second half of the year, based on its recently improved performance and financial capacity.
IPARK HYUNDAI DEVELOPMENT COMPANY's consolidated revenue for the second quarter of this year was 914.6 billion won, while operating profit was 122.7 billion won. This represents increases of 35.7% and 53.1%, respectively, compared with the previous quarter. It is the first time in about five years that quarterly operating profit has exceeded 100 billion won.
The operating profit margin stood at 13.4%, maintaining double digits for two consecutive quarters following 11.9% in the first quarter. The recovery in profitability is analyzed to have been driven by the recognition of revenue from large-scale projects and improvements in the cost ratio.
Financial indicators also improved. On a consolidated basis, net borrowings stood at 1.1952 trillion won at the end of the first half of this year, down 310.3 billion won from the previous year, while the debt ratio fell to 128.5%. Project financing (PF) contingent liabilities also decreased by 33.4% from the end of last year to 1.2876 trillion won.
An official from IPARK HYUNDAI DEVELOPMENT COMPANY explained, "Both profitability and financial soundness have improved through the stable recognition of revenue from large-scale projects and proactive improvements to the financial structure," adding, "Based on the secured financial capacity, we plan to concentrate our order-winning capabilities on high-quality urban redevelopment projects."
The reason IPARK HYUNDAI DEVELOPMENT COMPANY is showing interest in the Sookmyung Women's University Station area is its development and operation experience accumulated in Yongsan District.
The company has expanded its business scope in Yongsan District through projects such as HDC IPARKMALL Co., Ltd., the development of the Yongsan Railway Hospital site, and securing construction rights for the Yongsan Maintenance Depot Front Zone 1. If it wins the contract for the Sookmyung Women's University Station area as well, it will further expand its business base within Yongsan District by linking it with its existing development and operational assets.
In the design sector, the company is reportedly pursuing collaboration with the global architectural firm smdp. smdp has participated in the design of major domestic luxury residential complexes, such as Nine One Hannam and Raemian One Bailey. It also worked with IPARK HYUNDAI DEVELOPMENT COMPANY on Seoul One I-PARK and the Yongsan Maintenance Depot Front Zone 1.
An official from IPARK HYUNDAI DEVELOPMENT COMPANY stated, "Yongsan District is a key hub where major operational assets are concentrated in addition to the headquarters, and its strengths lie in accumulated experience in mixed-use development and asset integration," adding, "Through collaboration with smdp, we plan to prepare a high-end design proposal that maximizes the urban landscape of Yongsan District, views of Namsan, and the value of the station area."

[email protected] Choi A-young Reporter