Gangnam-gu Signs Win-Win Agreement with 8 Construction Companies to "Stop Illegal Competition"
Applied to 11 Sites Including Apgujeong 2-5 Districts and Gaepo Jugong
Gangnam-gu, Seoul (District Mayor Jo Seong-myeong) announced on the 8th that it has signed a “Win-Win Agreement for Preventing Unfairness and Overheating in the Selection Process of Construction Contractors for Maintenance Projects in Gangnam-gu and for the Advancement of the Maintenance Project Contract Culture” with eight major domestic construction companies competing to be selected as contractors for the reconstruction of Hyundai Apartments in Apgujeong-dong and other sites.
The construction companies participating in the agreement held at the district office on the 6th include Daewoo E&C, DL E&C, Lotte Construction, Samsung C&T, HDC Hyundai Development Company, GS Engineering & Construction, POSCO E&C, and Hyundai Engineering & Construction.
Since the amendment of the “Seoul Metropolitan City Ordinance on Urban and Residential Environment Maintenance” in March last year, which allows the selection of contractors after the approval of the establishment of the association, the Apgujeong 2 to 5 districts, currently in the process of establishing maintenance plans, are expected to begin selecting contractors as early as next year after the announcement of the maintenance plan decision.
Accordingly, an intense bidding war among various construction companies to secure the construction rights for the Apgujeong district, a symbol of reconstruction, is anticipated. In the past, excessive competition in securing construction rights often led to outdated practices such as bribery and mutual defamation.
Previously, during the selection of designers for Apgujeong 3 district, overheating competition led to a re-selection process. Such unnecessary conflicts caused delays in maintenance projects, which directly harmed the residents.
Gangnam-gu stated, “We led this agreement to proactively respond to prevent overheating competition for construction rights,” and explained, “It is significant as the first win-win agreement between a district office and multiple major construction companies in maintenance projects.”
At the signing ceremony, executives including Shin Man-ho from Daewoo E&C, Chae Jun-hwan from DL E&C, Kang Min-jong from Lotte Construction, Kim Do-hyung from Samsung C&T, Kang Kyung-min from HDC Hyundai Development Company, Lee Soon-tae from GS Engineering & Construction, Jang Geun-ho from POSCO E&C, and Shin Guk-hyun from Hyundai Engineering & Construction attended and pledged fair competition.
The agreement is based on the “Seoul Metropolitan City Public Support Maintenance Project Contractor Selection Criteria” and includes provisions such as ▲ prohibition of individual promotions and invalidation of bids if violated ▲ prohibition of bribery and entertainment ▲ fostering a model and advanced maintenance project culture.
This agreement applies to all 11 sites in Gangnam-gu currently preparing to select contractors. These include eight sites that have completed association establishment approval such as Apgujeong 2 to 5 districts, Gaepo Jugong 6 and 7 complexes, Gaepo Woosung 4th, 6th, and 7th complexes, and three sites in the business implementation plan approval stage such as Daechi Ssangyong 1st and 2nd complexes and Daechi Woosung 1st complex.
District Mayor Jo Seong-myeong said, “Through this win-win agreement, we aim to start a new era of maintenance projects in Gangnam-gu,” and added, “We will lead an advanced maintenance project culture that envisions the next 100 years by successfully promoting large-scale development projects through fair and transparent maintenance projects.”
Jongmyung Cho, Mayor of Gangnam District (center), and executives from eight major construction companies are taking a commemorative photo after the win-win cooperation agreement ceremony. Provided by Gangnam District.
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