Two Employees of Seongnam Urban Development Corporation Participate in Both Absolute and Relative Evaluations for 'Hwacheon Daeyu Selection'

Two Officials Participating in Absolute Evaluation Also Participate in Relative Evaluation

[Image source=Yonhap News]

It has been revealed that among the five relative evaluation (external evaluation) committee members selected for the private developer selection process of the Daejang-dong development project in Seongnam City, two were executives of Seongnam Urban Development Corporation. They belonged to the project owner organization and also participated in the absolute evaluation (internal evaluation) conducted the day before the relative evaluation.

According to Seongnam Urban Development Corporation on the 18th, three consortia including Hana Bank, Korea Development Bank, and Meritz Securities applied for the private developer selection contest for the Daejang-dong development held from February to March 2015.

On the application deadline day, March 26, 2015, and the following day, the 26th and 27th, the absolute evaluation and relative evaluation for selecting the preferred negotiation partner were conducted sequentially, resulting in the final selection of the Hana Bank consortium on the 27th. This consortium included Hwacheon Daeyu, which has been subject to preferential treatment allegations, participating as an asset management company.

Until now, it was known that the absolute evaluation was conducted by three executives of Seongnam Urban Development Corporation, and the relative evaluation was conducted by five members randomly selected from a panel of 25 external committee members.

In the materials submitted by Seongnam Urban Development Corporation to the city council in December 2015 regarding the private developer selection process, it was also specified that "Relative evaluation committee members: 5 selected (committee members selected by drawing lots among project participants)."

Article 31 of the contest guidelines (Composition of the Selection Committee) states, "The corporation shall form a selection committee to select the preferred negotiation partner through the evaluation of project proposals, and in this case, the selection committee shall consist of selection committee members who are experts in related fields appointed by the corporation." The selection committee was organized for the relative evaluation.

However, it has been revealed that two executives who participated in the absolute evaluation also participated in the relative evaluation.

Thus, the five relative evaluation committee members consisted of three external members and two internal members.

Regarding this, city council member Lee Gi-in (People Power Party) said, "The fact that the absolute and relative evaluation committee members are the same is clear circumstantial evidence of the preselection of the Hana Bank consortium," adding, "Since false materials were also submitted to the city council, we will consider filing charges against those involved."