April 26, 2024

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[THE INVESTOR] Hyundai Motor Group’s 105-story sky scrapper project is expected to face a further delay, with the construction starting as early as June this year.

According to industry sources on Feb. 2, the construction that had originally been scheduled to start in January is being delayed due to the prolonged approval process.

The Korean auto giant that owns Hyundai and Kia brands aims to create a new fancier headquarters complex on a 79,341 square-meter site in Samseong-dong, southern Seoul, by 2021. 

Hyundai Motor Group Chairman Chung Mong-koo (center) visits the site of the carmaker`s new headquarters complex in Samseong-dong, southern Seoul.

The complex, tentatively called Global Business Center, consists of an office building, a brand museum, a hotel and other convention and amusement facilities.

Hyundai purchased the site for 10.55 trillion won (US$9.20 billion) back in 2014 in a highly publicized bidding war with Samsung Group. Despite winning, investors still complain about the hefty buying price, about three times higher than then market estimates.

Hyundai plans to spend an additional 2.5 trillion won for construction and 1.7 trillion won as contribution to the city government.

Currently, the city and related government offices are carrying out feasibility tests on environment and traffic around the area before their final approval of the project. Following the results, the carmaker is also likely to be forced to pay some compensation.

According to a tentative construction plan unveiled on Feb. 1, the 569-meter main building is expected to become the nation’s tallest building, which compares to the current tallest 555-meter Lotte World Tower in Jamsil.

By Lee Ji-yoon (jylee@heraldcorp.com)