Lee Sang-eui, head of GS Engineering & Construction's (006360) urban redevelopment business division (pictured), recently told Seoul Economic Daily, "We boldly gave up Apgujeong in order to concentrate on Yeouido and Mokdong," emphasizing his determination to pour all of the company's capabilities into Yeouido and Mokdong. He added, "As contractor selection in the Mokdong and Yeouido areas gets underway in earnest from the second half of the year, we are concentrating our capabilities by preparing top-tier product designs that meet union members' expectations and swift project execution plans."
Lee cited specialized Han River-view design and rapid permitting and project speed as the respective characteristics of the Yeouido and Mokdong projects. "Having carried out the Yeouido Xi project for 10 years, I take pride in knowing Yeouido's characteristics well," he said. "In the case of the Eunha and Samik apartments, the Han River view is blocked by the Sibeom apartment directly in front, so how to resolve this through design will likely be the key issue."
Regarding Mokdong, given the enforcement of the International Civil Aviation Organization's (ICAO) revised altitude restrictions, he said, "We will focus the design on obtaining project implementation approval as quickly as possible." Lee added that, beyond Mokdong and Yeouido, the company also plans to participate in the redevelopment projects for Gwangmyeong Cheolsan and Yongsan Seogye integrated zone.
Lee diagnosed the recent housing market as one of polarization. He explained that the temperature gap in the market is more pronounced than ever, with the concentration on "new builds in Seoul's core areas" maximized, while economic feasibility in provincial or outlying areas has weakened in the wake of rising construction costs.
GS E&C, too, has grappled deeply with this. "I think our clear positioning around selection and focus played a big part in driving this year's results," Lee said. "Instead of the easy route of cutting construction costs, we prepared on practical fronts such as diversifying design and supply lines, which is the backdrop to maintaining our competitiveness."
