Seoul City Uncovers 12 Improper Cases During Reconstruction of Apgujeong 3 District

The Seoul Metropolitan Government has stated that the design competition process of the Apgujeong 3 District Reconstruction Association in Gangnam-gu was illegal and that a re-competition must be conducted. If the association fails to comply with the correction request, an immediate investigation will be requested.

On the 24th, Seoul announced that it had detected a total of 12 improper cases following an inspection of the operation status of the Apgujeong 3 District Reconstruction Association. Previously, the city conducted an inspection over the past three weeks (July 31 to August 18) covering the association’s operations and overall administration, including the design competition process. The resulting disciplinary actions include one case referred for investigation, seven cases to be referred for investigation if correction orders are not followed, one correction order, and three administrative guidance cases.

First, the city revealed that there were illegalities in the association’s process of selecting designers for the reconstruction project, as well as improper cases related to association operations such as opaque borrowing of funds and delays in information disclosure.

Regarding service contracts, the association must comply with the "Standards for Handling Reconstruction Project Contracts" announced by the Minister of Land, Infrastructure and Transport, Seoul’s "Public Support Designer Selection Criteria," and the competition operation standards and guidelines prepared and distributed by the association. However, the city explained that the association neglected bid management by selecting final bidders without appropriate measures for design proposals that did not comply with relevant laws, higher-level plans, or competition guidelines, and also failed to comply with publicity-related regulations.

Problems were also revealed in budget execution, the city pointed out. When the association borrows funds, it is required to set the method, interest rate, and repayment method and obtain approval from the general meeting. However, the association submitted the borrowing proposal to the general meeting without finalizing the borrowing amount, obtained approval, and then borrowed funds. Accordingly, the city plans to issue a correction order and request an investigation if the association does not comply.

In addition, regarding information disclosure, the association is obligated to disclose documents and materials related to the reconstruction project to members or landowners within 15 days after they are created or changed. However, it was found that disclosure was delayed for up to 372 days for a total of 90 cases. Seoul has requested an investigation on this matter.

Seoul holds the position that the designer selection that violated relevant regulations is invalid and that the association must conduct a re-competition for designers. The city demands corrections from the association for the detected cases and will immediately request an investigation if the association fails to comply.

Furthermore, Seoul submitted additional materials from this inspection to investigative authorities regarding the case of filing charges against an architectural office that submitted improper design proposals during the bidding process on July 11.

Han Byung-yong, Director of the Seoul Housing Policy Office, stated, "We will continue to strengthen management and supervision through on-site investigations and institutional improvements to ensure transparent and smooth association operations."

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