Refer Report
On the 4th, an accident occurred in which a union member in Hannam District 3, Yongsan-gu, Seoul, drove a vehicle into the main gate of the Hyundai Construction headquarters, the construction company. As the police are investigating, interest is growing in what kind of place Hannam District 3 is and why such an accident occurred.
According to the maintenance industry and Hyundai Construction on the 5th, Hannam 3 District (686 Hannam-dong, Yongsan-gu, Seoul), where the relocation of residents is currently in the final stages, is the largest redevelopment district in Seoul’s history, with 197 buildings of 22 floors above ground and 6,006 households (including 901 rental households) on a total of 386,395 m2 of land. Hyundai Construction secured the construction rights after a fierce bidding competition in June 2020. The total project cost is 7 trillion won, and the construction cost is 1.7387 trillion won.
The 8,300 households currently in the business site began moving in November of last year. The relocation rate is known to have reached 95% as of recently, and Hyundai Construction plans to complete the relocation and demolition and begin construction of ‘THE H Hannam’ in 2026. It is located in a good location, with the Han River and Namsan Mountain nearby and Itaewon Station on Subway Line 6 a 10-minute walk away.
The man in his 60s who crashed into the main gate of the Hyundai Construction building the day before with a vehicle was reportedly an executive of the Hannam 3-gu redevelopment association. Competition among construction companies is fierce in the vicinity of Hannam 3-gu, Bogwang-dong, Yongsan-gu, ahead of the announcement of the construction company selection for Hannam 4-gu, and it has been reported that the problem started when Hyundai Construction used information related to Hannam 3-gu in its publicity campaign before winning the bid for Hannam 4-gu. It is said that they advertised that the infrastructure of Zone 3 could be used in Zone 4 without consulting the association. The police will be investigating the specific circumstances and motive of this man’s crime.
The number of households in Hannam District 3 has increased slightly due to recent changes in the development plan. The number of houses for sale has increased from 4,940 to 5,105, and the number of rental houses has also increased from 876 to 901. There is also a possibility that construction costs, which have remained unchanged since they were set four years ago, will increase.
The construction cost presented by Hyundai Construction to the 3rd District Association in 2020 was 5.46 million won per 3.3㎡, and the business plan was established based on the initial construction cost when the management disposal plan was established in 2022. As the recent increase in raw material prices and labor costs have not been reflected, there are concerns that conflicts between the association members and the construction company may arise due to the increase in construction costs ahead of the commencement of construction and sale in the future.
Senior Reporter Choi Jong-hoon cjhoon@hani.co.kr
Source: Korean