Final Showdown Tomorrow in Hannam 2 District... Daewoo and Lotte's Muddy Life-or-Death Battle

Hannam 2 Redevelopment Promotion Zone Bird's-eye View

The selection of the construction company for Hannam 2 District, considered the biggest urban redevelopment project this year, is just one day away. Daewoo Construction and Lotte Construction have engaged in a fierce competition by offering unprecedented project conditions, with the heated rivalry escalating into legal accusations.

According to the redevelopment industry on the 4th, the Hannam 2 Redevelopment Promotion District Redevelopment Association plans to hold an extraordinary general meeting at 2 p.m. on the 5th at the Presbyterian University and Theological Seminary in Seodaemun-gu, Seoul. The meeting will include a second joint briefing session for construction companies and the final selection vote. The construction company that receives a majority vote from more than half of the total 908 association members present will be chosen.

Due to the deteriorating construction environment, there have been fewer bidding competitions this year, resulting in many cases of single bids. However, unusually, both companies in Hannam 2 District competed by offering exceptional terms.

Hannam Summit Bird's-eye View

Daewoo Construction, which named the complex "Hannam Summit," promoted the "118 Project." The core idea is to create a skyline reaching up to 118 meters, surpassing the 90-meter height restriction. They pledged to fully secure relocation costs totaling 150%, which includes the legal limit of 40% LTV plus an additional 110%, and guaranteed a minimum relocation cost of 1 billion KRW.

Lotte Construction named their complex "Le L Palatino" and promised a "residential complex better than a hotel" through hotel-style community facilities and high-end finishing materials. They committed to 100% payment of the burden fee four years after moving in, progress payments from sales revenue without additional interest burdens on construction costs, and providing 70 million KRW for maintenance of old houses and commercial facilities.

Leael Pallatino

The bidding competition ultimately involved the police. On the 2nd, Lotte Construction filed a complaint with the Yongsan Police Station accusing Daewoo Construction employees of illegally entering the absentee voting site at Hannam 2 District, alleging violations of the Construction Industry Basic Act, bid interference, and obstruction of business.

Lotte Construction explained that an unidentified Daewoo Construction subcontractor employee was caught by the association while working on a computer containing the association member list until six members had voted. Due to this, voting was temporarily suspended in the morning. Daewoo Construction responded by stating, "It was a simple incident, and the claim that employees were sent to the office before voting to steal the association list on absentee voting day is a baseless suspicion and slander."

The outlook for the voting results remains uncertain. If the vote margin is not clear, there is a possibility of further disputes over procedural legitimacy. In the overheated bidding for Hannam 3 District, a corrective order to invalidate the bid was issued, leading to a re-bidding process.

The Hannam 2 District association stated, "The truth must be revealed through police investigation and inquiry," but added, "Since the investigation results cannot be released before the construction company selection meeting on the 5th, association members should make a well-informed judgment based on the testimonies and voices conveyed by the association."

Hannam 2 District is a project to develop a residential complex and neighborhood living facilities on an 115,005㎡ site in Bogwang-dong, Yongsan-gu, Seoul. It will consist of 30 apartment buildings ranging from six basement floors to 14 above-ground floors, totaling 1,537 households (including 238 rental units). The total construction cost is approximately 790 billion KRW.

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