Daewoo E&C Breathes a Sigh of Relief... Maintains Contractor Status for Hannam 2 District

Daewoo Engineering & Construction, which was on the verge of having its contract terminated as the construction company for the 'Hannam 2 District' redevelopment project in Bogwang-dong, Yongsan-gu, Seoul, has regained confidence from the union.

Perspective view of 'Hannam Summit' proposed by Daewoo E&C for Hannam District 2

According to the maintenance industry on the 18th, the Hannam 2 District union held a temporary general meeting on the 17th and conducted a vote on the reapproval of Daewoo Engineering & Construction as the construction company. Out of 909 total members, 735 (80%) participated in the vote either in writing or in person, resulting in 414 votes in favor, 317 against, and 11 invalid or abstentions, thereby reaffirming Daewoo Engineering & Construction.

The discussion on terminating Daewoo Engineering & Construction’s contract arose due to conflicts over the 'height restriction relaxation.' When Daewoo Engineering & Construction was selected as the construction company last November, it proposed the '118 Project,' which involved relaxing the height restriction to 118 meters to build up to 21 floors, successfully persuading the union members. At that time, Daewoo Engineering & Construction won the construction rights by more than 50 votes over its competitor, Lotte Engineering & Construction.

However, nearly a year after the selection, with no progress in regulatory relaxation, calls to revoke the construction rights emerged internally. On the 1st, a proposal to submit the reapproval of Daewoo Engineering & Construction to the general meeting was made at the delegates’ meeting but was rejected. Daewoo Engineering & Construction then held explanatory sessions for the Hannam 2 District union members, emphasizing that height restriction relaxation was sufficiently possible based on Seoul City’s regulatory easing policy direction and the submission of a request letter for additional height restriction relaxation, successfully persuading the union members. They also promised to provide various incentives to union members even if the 118 Project became impossible due to failure in height restriction relaxation.

Subsequently, the union president unilaterally decided to hold a temporary general meeting, which led to this reapproval vote. It is interpreted that the union members decided to reaffirm Daewoo Engineering & Construction considering losses from project delays and increased construction costs.

A Daewoo Engineering & Construction official said, "We sincerely thank the union members who trusted and chose us for reapproval," adding, "We will work with the union to quickly finalize the contract." The Hannam 2 District was supposed to have signed the contract with Daewoo Engineering & Construction last month as scheduled, but it was postponed due to this reapproval vote.

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