[fn People] “Value, speed and trust are the keys to successful Mokdong redevelopment”

[Financial News] “The most important things in Mokdong redevelopment are value, speed and trust. We must raise asset values with a product the market recognizes, ensure the project is not delayed, and honor the terms and promises we first put forward all the way to the end.”
Kwon Dong-hyuk, group leader of the Urban Renewal Team at LOTTE Engineering & Construction Co., Ltd., whom we met on the 12th, described the company’s competitive edge in the bidding for the Mokdong New Town redevelopment. Since joining the company, Kwon has been in charge of development planning projects for more than 20 years, and has spent the past 15 years working in the redevelopment field.
At the heart of the bidding strategy for Mokdong is the “Sorbonne Project,” a housing concept focused on education. Inspired by the intellectual and cultural traditions of the Sorbonne and the Latin Quarter in Paris, the project aims to combine nature and culture and the arts with Mokdong’s identity as an education-focused city. Kwon said, “We also plan to bring together the group’s strengths, including the service and prestige of LOTTE HOTELS & RESORTS, retail and cultural content, and the LOTTE Cultural Foundation.”
The company is planning routes that take residents along “Botanic Way,” which resembles a forest path, before they reach resort-like living spaces. It is also considering adding media art, gallery-style halls and performance spaces. Kwon explained, “We want to create the image of residents returning from work, first relaxing in nature and then entering homes as luxurious as a resort.”
The “Mokdong Le-El Lounge,” set up to hear residents’ views, is another pillar of the bidding strategy. It is the first time LOTTE Engineering & Construction Co., Ltd. has opened a permanent lounge under the Le-El brand. An average of 40 to 50 people visit each day, and most are Mokdong residents. Kwon said, “Interest has been particularly high in Botanic Way and the artworks displayed throughout the lounge, so we plan to reflect the preferences of residents who favor nature and art in our product strategy going forward.”
LOTTE Engineering & Construction Co., Ltd. is considering bidding for Mokdong New Town Complexes 2, 7, 11 and 14. The company plans to use the Sorbonne Project as a shared guiding concept while differentiating the design and offerings for each complex to suit its location and residents’ needs. It will also consider, in consultation with the residents’ associations, adding a distinct secondary name alongside “Mokdong” and “Le-El” in each complex’s name.
Kwon said the company would focus particularly on the exteriors, landscaping and community amenities, which are difficult to change after redevelopment. “The location is already fixed, but a complex’s offerings can be differentiated,” he said. “How nature, education, culture and the arts are incorporated into the community, and what additional services are provided, can lead to differences in a complex’s value in the future.”
He identified relocation financing as residents’ biggest concern. “Jeonse deposits are high in major redevelopment areas, and in many cases it is difficult to find somewhere to move with only the basic relocation loan, which is based on a 40% loan-to-value (LTV) ratio and capped at 600 million won,” he said. “Relocation financing sufficient for residents to live in nearby areas needs to be provided.”
He also predicted that the pace of the projects would determine their success or failure, since 14 complexes are pursuing redevelopment around the same time. Relocations and permitting could all converge, putting complexes that complete preparations first through the management and disposition plan stage at an advantage. Kwon stressed, “Time is money in redevelopment. Maximizing the value of the completed complex, using permitting experience and technical expertise to speed up the project, and keeping the promises we make from now on all the way to the end—that is what LOTTE Engineering & Construction Co., Ltd. wants to demonstrate in Mokdong.”
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