Seoul City Establishes Report Center for Unfair Practices in Selection of Hannam3 Construction Contractor

Operation of Joint 'On-site Reporting Center' by Seoul City and Yongsan-gu Until Completion of Constructor Selection
Actions Such as Correction Orders, Bid Invalidations, Investigation Requests, and Prosecutions Based on Reported Issues and Cases

[Asia Economy Reporter Kim Yuri] The Seoul Metropolitan Government announced on the 15th that it will operate an 'On-site Reporting Center' jointly with Yongsan-gu regarding the Hannam 3 District redevelopment project. Despite the fact that Yongsan-gu and the union are operating task forces and reporting centers to crack down on fraudulent activities, there has been a continuous overheating trend in the contractor selection process.

The on-site reporting center is specially operated to strengthen the activities of the task forces and reporting centers currently run by Yongsan-gu and the union. It has been set up at Jecheon Hall adjacent to Hannam 3 District, where it is easy to contact residents. The on-site reporting center has been operating since the day before and will continue until the contractor selection is completed on April 26. Operating hours are 2 hours a day (2 PM to 4 PM). Outside these hours, reports can be made to the Yongsan District Office.

The city plans to classify and respond to reports received through the on-site reporting center according to the nature of the cases. For cases involving bribery and entertainment, the city plans to request investigations and file complaints with investigative agencies. Violations of the 'Regulations on the Handling of Maintenance Project Contract Work (Ministry of Land, Infrastructure and Transport)' and 'Seoul Public Support Contractor Selection Criteria' will be notified to Yongsan-gu, the public supporter, so that the union can consider invalidating bids or canceling contractor selection.

Furthermore, the city may provide reporting rewards to whistleblowers related to bribery and entertainment upon final disposition notification of the report. The payment limit will vary (from under 1 million KRW to under 200 million KRW) depending on the amount involved in bribery and entertainment and the standards for judicial punishment based on identity.

Ryu Hun, Director of the Housing and Architecture Headquarters, said, "The recent overheating trend in the contractor selection process for Hannam 3 District distorts market order and undermines the original purpose of the maintenance project, which is to improve the residential environment." He added, "We expect that operating the on-site reporting center will contribute to eradicating violations, and we will continue to pay close attention and respond accordingly."