Seoul City and the Hanwha consortium are conducting final negotiations on the Jamsil sports and exhibition convention (MICE) complex project. The two sides are discussing a total project cost of about 2.5 trillion won, which is approximately 15% higher than before. They are finalizing agreements on key projects, including the renovation of the Jamsil Baseball Stadium into a dome stadium with over 30,000 seats and a height of 76 meters. The two sides have decided to create a baseball stadium nearly double the size of the Gocheok Sky Dome in Guro District, which is why the total project cost for Jamsil MICE is increasing.
According to Seoul City and the Hanwha consortium on the 14th, the two parties are negotiating the total project cost related to the creation of the Jamsil sports and MICE complex. This project is a private development initiative to establish a convention facility three times the size of COEX, a baseball stadium with over 30,000 seats, and a multipurpose sports facility with 11,000 seats on a site of 357,576 square meters in Songpa District. The initial project proposal was made in October 2016, with a total project cost presented at 2.1672 trillion won. The Hanwha consortium, led by Hanwha Construction (39% equity) and HDC Group (20%), along with Hana Financial Group and others, plans to operate the project for 40 years to recover the investment.
An official noted, "We have decided to increase the project cost by about 15% and are currently in final negotiations," adding that "specific conditions for the implementation agreement are being discussed." As 15% of the existing project cost is 325 billion won, the total project cost is expected to be around 2.5 trillion won.
The main reason for the increase in project costs is the expansion and renovation of the Jamsil Baseball Stadium. The two sides plan to convert the current open stadium into a 76-meter dome stadium and increase the seating capacity from the current 25,000 seats to more than 30,000 seats (between 33,000 and 35,000 seats).
A Seoul City official explained, "The creation of a dome stadium is the biggest reason for the increase in project costs," adding, "While there is the Gocheok Sky Dome, it is smaller than the Jamsil Baseball Stadium, and fans have expressed a desire for a larger dome stadium, so the Jamsil dome stadium is intended to meet these demands."
After completing the project cost negotiations, the two sides plan to sign the private investment agreement after going through the Ministry of Economy and Finance's Private Investment Review Committee before starting construction. A consortium official said, "We aim to sign the implementation agreement within this year and start construction next year." The expected completion date is 2032.
Earlier, in July of last year, Seoul City held a joint city and architecture committee meeting to determine the detailed development plan for the project. In the area where exhibition and convention facilities, as well as supporting office, commercial, and accommodation facilities are to be built, zoning will be adjusted. The area will be upgraded from a first-class general residential area to a semi-residential area.
Go Jun-seok, head professor at Yonsei University's Sangnam Business Institute, said, "The creation of the Jamsil MICE complex will increase foot traffic for sports spectators, and residents of nearby apartment complexes will also be able to enjoy various commercial facilities and infrastructure, greatly improving the residential environment in the Jamsil-dong area."