"'Redevelopment Big Fish' Hannam3 Bends... Orders 'Fair Competition' to Construction Companies"

On the 10th, On-Site Briefing... Ministry of Land Requests Competitive Bidding Considering Seoul City's Concerns
Decided Not to Accept Innovative Designs... Contractor Proposals Expected to Be Less Ambitious Compared to First Bidding

[Asia Economy Reporter Onyu Lim] "We have revised some parts of the construction company bidding guidelines in consideration of the points raised by the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government." (Hannam 3 District Redevelopment Official)

The Hannam 3 District Redevelopment Association, which suffered from controversy over 'illegal competition among construction companies,' is pushing for a re-bid based on guidelines reflecting the criticisms from the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government. Despite the prosecution's decision not to indict the construction companies, the association appears to be taking a more conciliatory stance to ensure smooth progress of the redevelopment project in the future.

At 2 p.m. on the 10th, a site briefing session for the re-bid of the construction company was held at the Hannam 3 District Redevelopment Association office in Hannam-dong, Yongsan-gu, Seoul. The briefing session is a stage where bidding guidelines are explained to construction companies wishing to participate, and letters of intent are collected. Last year, the association proceeded with the construction company bidding with the participation of Hyundai Engineering & Construction, GS Engineering & Construction, and Daelim Industrial, but the process was halted after the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government raised issues about illegal activities by the three companies and requested an investigation by the prosecution. After the prosecution decided not to indict the three companies, the association has finally begun preparations for the re-bid of the construction company.

An association official said, "Since this is a re-bid, we revised some parts of the bidding guidelines in consideration of the points raised by the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government," adding, "We decided not to accept innovative designs." The official refrained from detailing the specific changes, but it is known that the revisions reflect issues pointed out last year, such as violations of the Urban and Residential Environment Improvement Act by the construction companies (interest-free support for project costs), bid interference (guarantee of sale price), and violations of the Fair Labeling and Advertising Act (leasing followed by sale).

At the briefing session, Hyundai Engineering & Construction, GS Engineering & Construction, and Daelim Industrial, which competed in the first construction company bidding, participated. A construction company official said, "The guidelines have not changed significantly from the first bidding," but added, "The association requested that we keep in mind the points raised by the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government and compete fairly." The official explained, "If a company violates the association's guidelines, it may be excluded from the bidding and this could affect future permits from the Seoul Metropolitan Government, so the level of proposals from construction companies may be lower compared to the first bidding."

The Hannam 3 District Redevelopment project is a plan to build 5,816 apartment units and neighborhood living facilities on a 386,400㎡ site at 686 Hannam-dong, Yongsan-gu, Seoul. The expected construction cost alone is about 2 trillion KRW, with total project costs around 7 trillion KRW, making it the largest redevelopment project in South Korea. Since being designated as a redevelopment promotion district in October 2006, it received approval for the establishment of the association in September 2012 and project implementation approval in March 2019.

This content was produced with the assistance of AI translation services.