'Yeouido 1st Reconstruction' Hanyang Construction Company Selection Faces Halt... Seoul City Orders "Illegal Review"

The selection of the construction company for Hanyang Apartment, aiming to be the first reconstruction project in Yeouido, Seoul, has been halted. As the Seoul Metropolitan Government raised issues with the bidding guidelines for the construction company selection, the scheduled general meeting of the association at the end of this month may be postponed. This has created an awkward atmosphere for Hyundai Engineering & Construction and POSCO E&C, who were competing with various pledges, including high-end brands.

According to Yeongdeungpo District Office on the 16th, the Seoul Metropolitan Government recently issued administrative guidance to the district office to review whether there were any violations related to the selection of the construction company for the Yeouido Hanyang Apartment reconstruction. Accordingly, Yeongdeungpo District Office requested materials from KB Real Estate Trust, which is implementing the Hanyang Apartment reconstruction, for this purpose.

A Yeongdeungpo District Office official said, "The Seoul Metropolitan Government asked us to review whether there are any illegalities related to the selection of the Hanyang Apartment construction company, and the project team is currently reviewing if there are any issues."

It is known that Seoul is currently raising issues regarding the maintenance zone and land use areas specified in the bidding announcement for the construction company selection. Although consent from some commercial building owners was not obtained, the maintenance zone including those sites was presented, and the area was designated as a general commercial area instead of a type 3 general residential area, which is inaccurate. Seoul had announced plans to upgrade the land use area to a general commercial area during the rapid integrated planning of Hanyang Apartment, but the relevant maintenance plan has not yet been finalized.

The general meeting of association members for selecting the construction company is scheduled for the 29th. KB Real Estate Trust currently holds the position that there is no significant problem. However, if things go awry, since Hyundai Engineering & Construction, POSCO E&C, and others have spent tens of billions of won on the construction company selection, disputes over responsibility could arise.

Moreover, the construction company selection was previously delayed once due to the immature management by KB Real Estate Trust. At that time, the announcement included a condition restricting the participation of construction companies involved in ongoing lawsuits, which sparked controversy over "favoring a specific construction company," leading to the cancellation of the announcement.

Meanwhile, Hanyang Apartment, which is likely to be the first reconstruction project in Yeouido, is a site that Seoul Metropolitan Government has drafted as a "residential complex specialized for financial centers with over 50 floors" in line with Mayor Oh Se-hoon's Yeouido financial hub plan. Seoul plans to upgrade the zoning from type 3 residential area to general commercial area, enabling reconstruction of up to 1,000 households with a maximum height of 200 meters.

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