Hyundai Motor Group and Seoul City agreed to kick off the construction of its landmark buildings in Gangnam early next year, wrapping up months-long negotiation over the development project, officials said Wednesday.

Seoul Metropolitan Government said the carmaker would construct the Global Business Center by 2021 that consists of a 105-story landmark tower 553 meters tall, and five other buildings that encompass a hotel, exhibition centers, concert halls and offices. 


The two parties initiated the discussions in June last year over how to balance the company's private interest and public interest regarding the 79,345-square meter large land that the carmaker purchased from Korea Electronic Power Corp. in 2014 for 10.55 trillion won ($8.6 billion) in the bidding with Samsung Electronics.

Hyundai also agreed to pay the public contribution fee of 1.75 trillion won in return for changing the legal use of the landsite from “general residential” to “general commercial.” The legal use change is necessary for it to push for the Global Business Center plan.

The public contribution fee will go to improving the transportation infrastructure to reduce traffic congestion around the area, improving water quality and building public sports facilities, the company said.

The top two floors of the main tower will have an observatory that will be open to the public, it added.

A large public plaza will also be built for performances, public events and fairs.

The city said the Global Business Center will serve as a center point of the “MICE industry cluster” that the city has been pushing to establish in Gangnam.

Hyundai’s landmark building plan will lead to economic benefits worth 265 trillion won and bring 1.2 million new job opportunities, it added. 

By Lee Hyun-jeong (rene@heraldcorp.com)