Seoul City Pressures Hannam 3 District's 'Big 3 Bidders' Despite No Charges

The Ministry of Land, Infrastructure and Transport Also Joins In Mentioning "Bid Invalidity"

On the 28th, a union member is being interviewed by the press ahead of the regular general meeting of Hannam 3 District held at Cheonbokgung Church in Yongsan-gu, Seoul. The Hannam 3 District union, which has been embroiled in controversy over illegal contract awards due to excessive bidding, will gather opinions from union members at this meeting regarding the 're-bidding' for contractor selection and the 'proceeding with modifications excluding violations' discussed at the emergency board meeting held the previous day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Onyu Lim] Despite the prosecution's 'no charges' decision regarding the illegal allegations against construction companies that arose during the bidding process for the construction company of Hannam 3 District in Yongsan-gu, Seoul, the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government are maintaining a tough stance, stating they will "strictly manage unfair practices," drawing criticism. There are also concerns that excessive legal interpretation and undue interference in private projects have caused undue harm to innocent residents.

According to industry sources and the Hannam 3 District Redevelopment Association on the 22nd, construction companies seemed to have anticipated the prosecution's decision the day before. A representative of one construction company that participated in the Hannam 3 District bidding said, "Before preparing the bid proposal, we completed our own legal review and judged that there were no issues."

Earlier, the Seoul Northern District Prosecutors' Office dismissed charges against Hyundai Engineering & Construction, GS Engineering & Construction, and Daelim Industrial, participants in the Hannam 3 District bidding, who were accused of violating the Urban and Residential Environment Improvement Act. The Ministry of Land, Infrastructure and Transport and Seoul City had claimed violations such as ▲100% payment of association members' contributions one year after moving in ▲guaranteeing a general sale price of 72 million KRW per 3.3㎡ ▲zero rental housing, but these were deemed difficult to consider as violations of the Urban and Residential Environment Improvement Act. Providing relocation funds interest-free to association members is merely a contract condition, not a bribe, and items like sale price guarantees only result in civil liability for damages if unfulfilled, not false or exaggerated advertising.

However, despite the prosecution's no-charge decision, the Ministry of Land, Infrastructure and Transport and Seoul City maintained a tough stance. Seoul City stated in an official statement, "Several proposals that emerged during the selection process of the implementing company violated the current standards for handling maintenance project contracts," and emphasized that "administrative authorities can take measures such as invalidating the bid." The Ministry of Land, Infrastructure and Transport also continued to pressure the association, saying, "If problems are found again, we will consider fines and bid invalidation."

Some point out that the exemplary administration by the Ministry of Land, Infrastructure and Transport and Seoul City has caused considerable financial damage to the residents of Hannam 3 District. After the prosecution's no-charge decision, association members of Hannam 3 District voiced dissatisfaction, saying, "Who will compensate for the losses incurred by association members due to the delay in selecting the construction company?" However, the association seems to be refraining from direct confrontation with Seoul City, fearing they might become targets of resentment.

Meanwhile, the Hannam 3 District association plans to announce a re-bidding for the selection of the construction company on the 1st of next month and hold a site briefing session on the 13th. The re-bidding will close on March 27, and a general meeting for the selection of the construction company is scheduled for May 16. A Ministry of Land, Infrastructure and Transport Housing Maintenance Division official said, "We hope similar cases do not arise during the re-bidding process," and added, "If problems are found again, we will consider fines and bid invalidation."