Hyundai’s Colossal Global Business Center a Go

Construction begins early next year on the Hyundai Global Business Center in Seoul, a multibillion-dollar anchored by automaker Hyundai Motor and Kia Motors and affiliated supplier Hyundai Mobis.

The 1,771-ft. (540-m) main tower has 6 million sq.-ft. (557,400 sq.-m) of floorspace. All Hyundai Motor, Kia Motor, Hyundai Mobis and other principal affiliated companies will have their key business functions concentrated there.

Connected to the tower will be a 40-story, 265-room superluxury hotel and office complex. Some Hyundai Group offices also will be located there.

Other major buildings will include a 7-story performance hall with an 1,800-seat concert theater and 600-seat classical music theater.

An 8-story shopping center will round out the facilities. Total floorspace for all of the principal buildings is 10 million sq.-ft. (929,000 sq.-m).

Completion is scheduled for 2021.

The project makes several accommodations to the Seoul city government The two top floors have been designed as ultramodern tourist-oriented observation levels. Hyundai also donated an extra 1.75 trillion won ($1.4 billion) donation to win approval for the project following negotiations that began in June.

All of the buildings will be connected with walkways, while the city will build walkways to connect the center with other business and tourist facilities. They include the nearby COEX Conference and Exhibition Center, site of many automotive shows and other industrial exhibitions.

The city will use a 1.75 trillion won ($1.4 billion) donation, which hiked Hyundai’s overall land-acquisition costs more than 10%, to make upgrades including improvements to its sewer system and infrastructure to ease traffic congestion.

The project raised eyebrows among security analysts and shareholders of consortium partners Hyundai Motor, Kia Motors and Hyundai Mobis when it was revealed in September 2014.

It first came to light when bids were revealed for the site of the Korea Electric Power Corp. property in the capital’s affluent Gangnam district. The utility was required to relocate to spread Korea’s publicly owned businesses more equally around the nation.

Hyundai’s consortium submitted a winning bid of 10.5 trillion won ($8.5 billion), three times the appraised value of the 20-acre (8-ha) property. At the time the amount was equivalent to $10 billion, an amount since reduced by changing international currency rates.

The Hyundai Tower will be Seoul’s second-highest skyscraper after the nearby Lotte World Tower now in its final construction stages.