K-New Town: North Korea’s First Mega Urban Project in Vietnam, 1.5 Times Larger Than Hanoi’s Old Quarter, Unveiled by Two Korean Giants

In a groundbreaking announcement earlier this January 2026, the Korea Land and Housing Corporation (LH) unveiled the list of preferred bidders for the Southeast New Urban Development project. Notably, the list includes two of South Korea’s leading construction giants, Hyundai Engineering & Construction (Hyundai E&C) and POSCO E&C.

The selected consortium comprises private investors such as Omega Construction, JR Asset Management, Jeil Construction, alongside Hyundai E&C and POSCO E&C. Additionally, the Korea Infrastructure and Urban Development Corporation (KIND) is set to join the public sector alliance, marking a significant step forward in the Urban Growth Partnership Program (UGPP). This public-private initiative, established by the South Korean government, aims to promote the export of smart urban models globally.

Spanning 8.1 million square meters (approximately 810 hectares) in Bac Ninh Province, just 18 kilometers from Hanoi’s city center, the Southeast New Urban Development project is a monumental endeavor. To put its scale into perspective, the project is 1.5 times larger than Hanoi’s Hoan Kiem District (pre-merger, approximately 5.34 km²) and comparable to the Pangyo New Town in Seongnam, Gyeonggi Province, South Korea—a renowned model of modern satellite cities.

Preliminary plans indicate that this mega-city will accommodate a population of approximately 100,000 residents. LH and its partners aim to create a self-sustaining urban hub, seamlessly integrating residential, commercial, business, cultural, and public infrastructure facilities. With an estimated investment of several trillion won, the project stands as a flagship FDI initiative in urban development in Northern Vietnam.

The early involvement of industry leaders Hyundai E&C and POSCO E&C underscores South Korea’s commitment to realizing the first “K-New Town” model in Vietnam. This project was highlighted during the high-level meeting between South Korean President and General Secretary To Lam in August last year, emphasizing its significance as a symbol of economic cooperation between the two nations.

Previously, this region has attracted interest from prominent domestic developers such as Vingroup, Sun Group, and T&T Group, who have proposed large-scale development plans.

Following official approval from Vietnamese authorities, LH will proceed with the next steps, including investor bidding and establishing a local Special Purpose Company (SPC) to execute the project.