법무법인(유한) 율촌 | Yulchon LLC

Yulchon's real estate team advised on the international curtain wall bidding project for the construction of Lotte World Tower, Lotte World 2, located in Jamshil, Seoul which is under construction with Lotte Corporation, Lotte Shopping Co., Ltd. and Hotel Lotte Co., Ltd. as the owners and Lotte Engineering & Construction as the general contractor. The Lotte World Tower is a 550m, 123-floor skyscraper, and will be the tallest building in Korea and the second tallest in the world upon completion. Given these facts, the tower's curtain wall system is quite complex and accounts for 14% of the total construction cost of the Tower. Lotte implemented a bidding process participated by overseas curtain wall professionals to select the subcontractor for such curtain wall construction work.
 

The real estate team provided legal advice on (i) the applicable statutory restrictions including those relevant to the domestic construction work related to the curtain wall subcontract, (ii) regulations regarding the agreements to be entered into with the overseas subcontractors; and (iii) the relevant tax issues, and was also involved in the preparation and review of the request for proposal (RFP) which involvement included the review of the subcontract terms and conditions, bidding precautions and specifications and provision of overall advice on the entire curtain wall subcontract work (including responses to inquiries from bidders).
 

This deal is a rare case in that an overseas subcontractor will be responsible for the subcontract work in Korea. Despite the tight time constraints, the real estate team provided detailed and in-depth advice for the preparation of international bidding documents and favorable subcontract terms for the owners and the general contractor, taking into account circumstances specific to the skyscraper and curtain wall construction.
 

Notably, the real estate team continues to provide advice on the Lotte's skyscraper construction project, including advice on the design agreement for Lotte World Tower which was entered into between Lotte and an overseas company in 2009 prior to this deal.