'Hannam 3 District' Maximum Redevelopment, Hyundai·GS·Daelim Three-Way Competition... Selection Postponed

At the regular general meeting of Hannam 3 District held last year at Cheonbokgung Church in Yongsan-gu, Seoul, union members are undergoing verification procedures. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Onyu Lim] Hyundai Engineering & Construction, GS Engineering & Construction, and Daelim Industrial are once again competing in a three-way battle over 'Hannam 3 District,' the largest redevelopment site with construction costs reaching 2 trillion won. The selection of the construction company for Hannam 3 District, which was previously halted due to controversy over an 'overheated bidding war,' is expected to be possible only in May due to the impact of the novel coronavirus (COVID-19).

According to the construction industry on the 29th, the Hannam 3 District redevelopment association in Yongsan-gu, Seoul, closed the submission of construction company re-bidding proposals on the 27th, with Hyundai Engineering & Construction, GS Engineering & Construction, and Daelim Industrial participating in the bid. These are the same three companies that competed in the first construction company bid last year. At that time, these three construction companies fiercely competed to win the construction rights, and the Seoul Metropolitan Government and the Ministry of Land, Infrastructure and Transport requested a prosecution investigation into the three companies, citing multiple violations during the bidding process. However, after the prosecution cleared the three companies of charges, the association began the re-bidding process for selecting the construction company earlier last month.

Hannam 3 District is a redevelopment project to create 197 buildings with 6 basement floors to 22 above-ground floors, 5,816 households (including 876 rental units), and neighborhood living facilities on lot 686 in Hannam-dong. It is the largest redevelopment site in history. The planned construction price is 1.888 trillion won, which is 5.95 million won per 3.3㎡ (excluding value-added tax).

Originally, the Hannam 3 District redevelopment association planned to hold a general meeting to select the construction company on the 26th of next month. Since the construction company selection process was halted once, causing considerable burden on the association members, the plan was to proceed swiftly without controversy. To this end, the association emphasized fair competition to the construction companies, and the companies promised this. Given the previous illegal bidding controversy, the three construction companies are known to have submitted proposals mindful of the issues pointed out by the government and the Seoul Metropolitan Government in this re-bidding. The Seoul Metropolitan Government also set up a reporting center and began special management.

However, due to the impact of COVID-19, the general meeting for selecting the construction company has been postponed again to the end of May. Previously, the Seoul Metropolitan Government sent an official letter to autonomous districts prohibiting redevelopment and reconstruction association general meetings until May 18 to prevent the spread of COVID-19 in the community.

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