Hyundai Construction Wins Contract for Hannam 3 District, the 'Biggest Redevelopment Project'

General Meeting for Construction Company Selection at COEX, Gangnam-gu, Seoul on the 21st
About 2,700 Union Members Gather Despite COVID-19 Spread Concerns

Hyundai Construction is taking a commemorative photo for winning the contract immediately after the contractor selection general meeting held at COEX, Gangnam-gu, Seoul on the 21st.

[Asia Economy Reporter Onyu Lim] Hyundai Engineering & Construction has succeeded in securing the construction rights for the largest redevelopment project in Seoul, Yongsan-gu Hannam 3 District, with a total project cost of 7 trillion KRW, surpassing Daelim Industrial and GS Engineering & Construction.

The Hannam 3 District Redevelopment Association announced on the 21st that Hyundai Engineering & Construction was finally selected as the construction company following a vote by association members held at COEX in Samseong-dong, Gangnam-gu, Seoul. Yoon Young-jun, Head of the Housing Business Division and Vice President, said immediately after the announcement, "We will make DH Hannam the best apartment that everyone can be satisfied with."

On the day, 2,735 out of approximately 3,800 total association members attended the site. The voting was conducted in two rounds: the first round and the runoff. In the first round, Hyundai Engineering & Construction and Daelim Industrial received 1,167 and 1,060 votes respectively, easily beating GS Engineering & Construction, which received 457 votes, and advanced as the final candidates. In the runoff vote count, Hyundai Engineering & Construction received 1,409 votes, surpassing Daelim Industrial’s 1,258 votes, securing the construction rights.

Hannam 3 District is the largest redevelopment project to date, with a project cost reaching 7 trillion KRW. It involves demolishing old houses in the 686 area of Hannam-dong, Yongsan-gu, Seoul, and constructing 197 buildings ranging from six basement floors to 22 above-ground floors, comprising 5,816 households (including 876 rental units) and neighborhood living facilities. With this contract, Hyundai Engineering & Construction instantly became the top contractor in cumulative orders for this year.

This decision marks the conclusion of the 10-month-long process of selecting the construction company for Hannam 3 District. The association began the selection process by issuing a public notice in August last year. However, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government invalidated the bids due to concerns over excessive competition and referred the matter to the prosecution, resulting in a 10-month delay before the final selection. The prosecution cleared all three companies of any wrongdoing.

Meanwhile, although Gangnam District Office issued an administrative order prohibiting gatherings to the association due to concerns over the spread of COVID-19, the association proceeded with the general meeting, fearing that further delays in selecting the construction company would prolong the project.

A Gangnam District Office official who visited the general meeting site on the day stated, "Since the gathering ban order is currently in effect, we will take action according to laws and procedures not only against the association but also against the attending members." Failure to comply with the gathering ban order may result in a fine of up to 3 million KRW, and in case of confirmed COVID-19 cases, claims for damages related to treatment and quarantine costs may be filed.

To minimize the spread of COVID-19, the association implemented various quarantine measures at the site. Yellow stickers were placed at 1-meter intervals in waiting areas to enforce social distancing. Quarantine staff measured the temperatures of association members, and virus prevention disinfectants were placed throughout the venue. The Central Disaster and Safety Countermeasures Headquarters stated in a briefing that they would take legal action against the Hannam 3 District Redevelopment Association if quarantine rules were violated.

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