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Photo = POSCO E&C |
[Alpha Biz= Paul Lee] POSCO E&C has decided to withdraw from a large-scale mixed-use residential and commercial development project at the former Jeonbang and Ilsin Spinning sites in Gwangju.
According to Champions City Complex Development PFV, the project operator, and the city of Gwangju on September 17, POSCO E&C recently informed the consortium that it would no longer participate in construction negotiations. With POSCO E&C stepping aside just one month before groundbreaking, fellow preferred bidder Daewoo E&C is now in talks to proceed as the sole contractor.
The “Champions City” project aims to transform a 298,000-square-meter site in Im-dong, Buk-gu, Gwangju, into a landmark development featuring 4,015 residential units, office and commercial spaces, a luxury hotel, and a historical park. Within the site, Hyundai Department Store Group is planning to build “The Hyundai Gwangju,” a retail complex 1.5 times larger than The Hyundai Seoul, while Champions City PFV will develop a mixed-use complex branded as “All New Champions City.”
Previously, Hyundai Engineering, Daewoo E&C, GS E&C, and POSCO E&C all submitted letters of intent, with Daewoo and POSCO jointly selected as preferred bidders on April 28.
Industry observers speculate that POSCO E&C’s withdrawal may have been influenced by recent government pressure over consecutive fatal construction accidents, including potential license cancellation reviews. However, the company stated that the decision was unrelated to safety issues, citing disagreements over contract terms as the primary reason.
Despite exiting this project, POSCO E&C continues to pursue several major developments, including the 3,000-unit Eunhaeng Jugong redevelopment in Seongnam, the 1,600-unit Bangbae 15 district redevelopment in Seoul’s Seocho-gu, as well as new bids for mixed-use and redevelopment projects in Cheongju’s Heungdeok-gu and Seoul’s Seongsu 2 district.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
