Taehwa River Eco River I-Park, Contractor Changed to HDC I&C / Approval of Housing Construction Project Plan Change
- Area around 554-5, Banggu-dong, Jung-gu, Ulsan Metropolitan City
The apartment construction project currently underway in the area around 554-5, Banggu-dong, Jung-gu, Ulsan Metropolitan City has recently received a change approval. This project is planned to consist of a 28-story building above ground with two basement levels, including 675 apartment units in six buildings and neighborhood facilities.
The most significant change in this project is the contractor change from Taeyoung Construction to HDC I&C. As Taeyoung Construction entered a workout (corporate restructuring), the construction rights for the project site were transferred. Consequently, HDC I&C, a subsidiary of HDC, was selected as the new contractor, and it is highly likely that the project will be supplied under the HDC Hyundai Industrial Development brand 'Taehwa River Eco River I-Park'.
This change is expected to accelerate the project's progress. Future developments will be closely watched, and the residential environment in this area is anticipated to improve significantly.
The implementing company, Jeongseon Prime, has recently completed a project financing (PF) loan of 20 billion KRW, accelerating the preparations for construction. This project started in October 2021, but the construction has been delayed for the past three years. Now, with the change of contractors and the PF loan, the project is likely to be pushed forward in earnest.
The key details of this change approval are as follows. First, the project cost has increased from the original 393 billion KRW to 507.7 billion KRW, approximately an increase of 114.7 billion KRW. The project duration has also been extended from the original July 29, 2025, to July 20, 2028. Additionally, the contractor has changed from Taeyoung Construction Co., Ltd. to HDC I&C Co., Ltd.
Looking at the status of the project financing (PF) loan, the total loan amount is 195 billion KRW. This consists of Trench A (senior) at 170 billion KRW and Trench B (subordinated) at 25 billion KRW. The loan interest rate is set between 4.75% and 8.13%. With these measures in place, it is hoped the project will proceed smoothly.
Ulsan Metropolitan City is expected to see an increase of 1.18% in the Jeonse price index in 2024, making it the only area among provincial metropolitan cities where lease prices are rising. In particular, the area around Banggu-dong is gaining popularity due to its proximity to the Taehwa River, and the anticipated supply of 'Taehwa River Eco River I-Park' is likely to capture the interest of actual demanders.
The construction project of 'Taehwa River Eco River I-Park' is expected to contribute to improving the residential environment and revitalizing the local economy in Banggu-dong, Jung-gu, Ulsan. With the selection of a new contractor and the increase in project costs enhancing the project's stability, it is anticipated to have a positive impact on the Ulsan real estate market going forward.
This change is expected to bring new vitality to the Ulsan real estate market.
Ulsan Metropolitan City Announcement No. 2025 - 32
Announcement of Approval for Change in Housing Construction Project Plan
Approval has been granted for the change in the housing construction project plan for the area around 554-5, Banggu-dong, Jung-gu, Ulsan Metropolitan City, under Article 15 of the Housing Act, and is hereby announced in accordance with Article 30 of the same Act's Enforcement Ordinance.
February 27, 2025
Mayor of Ulsan Metropolitan City
1. Approval details for the housing construction project plan (5th change)
○
Implementing agency
1) Project Name: Housing Construction Project (Apartment and ancillary welfare facilities)
2) Project Entity
a. Name: Korea Asset Trust Co., Ltd. Representative Kim Kyu-cheol
b. Address: 306 Teheran-ro, Gangnam-gu, Seoul (Yeoksam-dong, Kite Tower)
3) Project Location: Area around 554-5, Banggu-dong, Jung-gu, Ulsan Metropolitan City
○ Project Content
| Category | Before Change | After Change | Remarks |
| Site Area | 24,366 m² | No Change | No Change |
| Building Area | 5,470.4959 m² | No Change | No Change |
| Total Floor Area | 118,034.0011 m² | No Change | No Change |
| Building Coverage Ratio | 22.45% | No Change | No Change |
| Floor Area Ratio | 326.37% | No Change | No Change |
| Number of Buildings | 6 main buildings / 4 auxiliary buildings | No Change | No Change |
| Number of Units | 675 units | No Change | No Change |
| Housing Type | Apartment and ancillary welfare facilities | No Change | No Change |
| Project Cost | 393,010,617,000 KRW | 507,743,701,000 KRW | Increase of 114,733,084,000 KRW |
2. Project Implementation Period
| Category | Before Change | After Change | Remarks |
| Project Duration | November 30, 2022 - July 29, 2025 | November 30, 2022 - July 20, 2028 |
3. Contractor
| Category | Before Change | After Change | Remarks |
| Name | Taeyoung Construction Co., Ltd. Representative Choi Geum-rak | HDC I&C Co., Ltd. Representative Jang Nam-su | |
| Address | 20 Singil-ro, Gwangmyeong-si, Gyeonggi-do (Iljik-dong) | 302, 3rd Floor, 5 Jeongja-il-ro 213beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do (Jeongja-dong, I-Park Bundang 3) |
4. Deemed Approval of Permissions under the Law
○
Includes deemed matters under other laws according to Article 19 of the Housing Act. (Only applicable parts included)
- Building permit under Article 11 of the Building Act
- Grant of development activities under Article 56 of the National Land Planning and Utilization Act (change)
5. Approval-related documents:
Available at Ulsan Metropolitan City Hall (Housing Permit Division), Jung-gu Office, Ulsan Metropolitan City (Building Division) for stakeholders to view.
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