Seoul City Cracks Down Relentlessly on 'Fairness' Violations, Halting Hanyang in Yeouido

Request for Corrective Action Regarding Construction Company Selection Bidding
Warning of Strong Legal Measures Following Apgujeong 3 District
"Unreasonable Project Promotion Rather Causes Delays"

The Seoul Metropolitan Government has put the brakes on the selection of the construction company for Hanyang Apartment, which is considered the most likely candidate for the 'Yeouido No. 1 Reconstruction.' After discovering illegalities in the bidding announcement, the city ordered corrective measures and took a tough stance, warning that legal action would be taken if these were not complied with. Following its order for a redesign competition in the Apgujeong 3 District, where plans conflicted with urban planning, Seoul is firmly halting redevelopment projects that violate 'fairness' and 'transparency.'

On the 24th, KB Real Estate Trust posted a bid announcement for the selection of a contractor for the reconstruction and maintenance project of Hanyang Apartment in Yeouido, Yeongdeungpo-gu, Seoul. This comes 20 days after the sudden cancellation of the contractor selection due to controversy over the wording related to bid participation qualifications on the 4th. The photo shows the Hanyang Apartment in Yeouido. Photo by Yongjun Cho jun21@

According to the redevelopment industry on the 21st, the Hanyang Apartment Reconstruction Steering Committee and KB Real Estate Trust canceled the general meeting for selecting the construction company, originally scheduled for the 29th, on the 19th. This was in response to Seoul’s request to Yeongdeungpo District Office to correct illegalities found during the process of selecting the construction company for Hanyang Apartment. The project included land not authorized by the project implementer in the project area and issued a bidding announcement that did not follow the redevelopment plan. With Seoul taking a hard line, stating that if the selection procedure is forced ahead, legal measures will be taken according to relevant laws, the Hanyang Apartment side had no choice but to halt the process.

In the cancellation notice, the Hanyang Apartment Reconstruction Steering Committee and KB Real Estate Trust stated, "If the recommendations of the competent authority are rejected, it is expected that considerable time will be required until the court’s final judgment in lawsuits arising from invalidation of the general meeting’s construction company selection resolution, complaints, and requests for investigation." They added, "Due to concerns about damage to landowners caused by project delays affecting the permit process, we have accepted Seoul’s recommendation and postponed the general meeting for selecting the construction company."

Hanyang Apartment is a site that Seoul has envisioned as a ‘residential complex specialized for a financial hub with over 50 floors’ in line with Mayor Oh Se-hoon’s Yeouido financial hub plan. It is currently under rapid integrated planning and is expected to be the ‘Yeouido No. 1 Reconstruction Complex.’ Despite the symbolic importance of speed for this project and residents’ complaints about financial losses due to delays, Seoul’s decision was uncompromising.

This is similar to the earlier case in August, when Seoul ordered a redesign competition for Apgujeong 3 District, a representative reconstruction project in Gangnam, citing illegalities. Seoul declared the competition invalid after Apgujeong 3 District proposed a floor area ratio of 360%, exceeding the city’s allowed 300%, and selected Heerim Architects’ design, which proposed reconstruction without rental housing. Seoul warned, "If the competition is not redone, we will request an investigation." Since reconstruction cannot proceed smoothly while opposing the city, which holds the permit authority, the association has surrendered and is currently conducting a redesign competition.

These two cases reveal Seoul’s commitment to prioritizing fairness and transparency while promoting reconstruction revitalization. The city believes that although aggressive project progress may be faster in the short term, it ultimately delays progress in the long run and is emphasizing lawful procedures.

A Seoul city official said, "As stated in the Apgujeong 3 District case, we have established the principle of promoting transparent redevelopment projects through fair competition in the selection of designers and constructors in redevelopment projects, and we will continue to improve systems in areas that are insufficient."

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