'Hannam3, the Biggest Redevelopment Prize, GS, Hyundai, and Daelim Set for Three-Way Battle (Comprehensive)'

On the 10th, Construction Company Bid Briefing "Seoul City Must Consider Ministry of Land, Infrastructure and Transport's Opinions"
Decided Not to Accept Innovative Designs... Construction Companies' Proposal Levels Expected to Lower Compared to First Bid

[Asia Economy Reporter Onyu Lim] The Hannam 3 District Redevelopment Association, which faced turmoil over the 'illegal competition among construction companies,' is pushing for a re-bidding process 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. It is expected that Hyundai Engineering & Construction, GS Engineering & Construction, and Daelim Industrial will participate in the re-bidding without surprises.

At 2 p.m. on the 10th, a site briefing session for the re-bidding 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 bid, and letters of intent to participate are collected. Last year, the association proceeded with the 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 the illegal activities of the three companies and requested an investigation by the prosecution. After the prosecution decided not to indict the three companies, the association has finally started preparing for the re-bidding of the construction company.

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

At the briefing session, Hyundai Engineering & Construction, GS Engineering & Construction, and Daelim Industrial, who competed in the first bidding, participated. A representative from one construction company 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 representative 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 association will accept re-bidding documents until 2 p.m. on March 27. Construction companies participating in the re-bidding will hold a briefing session for association members on April 16. The association members plan to select the final construction company through a vote on April 26. Originally, the association planned to select the construction company in mid-May, but considering the slowdown in the redevelopment project due to the suspension of the bidding process, the schedule was moved up by about two weeks.

The Hannam 3 District redevelopment project covers an area of 386,400 square meters at 686 Hannam-dong, Yongsan-gu, Seoul, and involves building 5,816 apartment units and neighborhood living facilities. The expected construction cost alone is about 2 trillion won, with total project costs around 7 trillion won, making it the largest redevelopment project in South Korea. It was designated as a redevelopment promotion district in October 2006, received approval for the establishment of the association in September 2012, and obtained project implementation approval in March 2019.

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