Mirae Hangang Headquarters Directly Addresses Various Controversies
Regarding Qualification Issues: "Ships Constructed Normally"
"Shipowner Supervision Team Permanently Stationed for Thorough Oversight"
On Pier Privileges: "Not an Obligation to Reopen Bidding"
As controversies over the Han River Bus and Yeouido Pier construction continue, the Seoul Metropolitan Government has once again issued clarifications. Amid concerns about the qualifications of the Han River Bus ship manufacturer and allegations of preferential treatment during the pier construction process, Seoul expressed worries that "incorrect information related to the project is spreading."
On the 7th, Joo Yong-tae, head of Seoul's Future Han River Headquarters, held a briefing at Seoul City Hall and addressed the recent controversies raised by the Seoul Metropolitan Council and others, stating, "There should be no actions that undermine the credibility of the project or cause unnecessary misunderstandings," and disclosed the progress of each project.
On the afternoon of the 7th, Joo Yong-tae, Head of the Seoul Metropolitan Government's Future Hangang Headquarters, is briefing on the progress of the Hangang bus project and the development of the Yeouido pier in the briefing room at Seoul City Hall. [Photo by Seoul Metropolitan Government]
Earlier, the Seoul Metropolitan Council raised suspicions about the unqualified status of the Han River Bus ship manufacturer, which is scheduled for official operation next year. It was pointed out that 'Gadeok Heavy Industries,' which signed a contract to build six Han River Buses, was an unverified startup company established at the end of December last year and registered in April this year. There were also claims that Seoul did not conduct sufficient verification, citing that a contract to change shipbuilding was signed on March 28, before the company registration was completed.
However, Head Joo stated, "Currently, Gadeok Heavy Industries is securing specialized personnel such as welders, who are crucial for aluminum shipbuilding, through partner companies and is leasing four workshops to build ships normally." According to materials prepared by Seoul, Gadeok Heavy Industries signed contracts for two tugboats (296 tons, 6.7 billion KRW each) on March 27, 2024, before the Han River Bus construction contract, and on April 26, 2024, also contracted for one marine waste collection vessel (190 tons, 4.8 billion KRW).
He also promised to strengthen management and supervision of Gadeok Heavy Industries. Head Joo added, "Currently, a shipowner supervision team is stationed at the four factories used by Gadeok Heavy Industries for shipbuilding, closely monitoring the shipbuilding process," and "The Future Han River Headquarters of Seoul also directly visited Gadeok Heavy Industries' workshops to inspect the situation."
The schedule for introducing each ship to the Han River was also disclosed. Of the eight Han River Buses currently under construction, two being built by Eunseong Heavy Industries are in the final stages with a launch target of November 25, and the six being built by Gadeok Heavy Industries are scheduled for phased delivery starting in December.
Regarding delays in the delivery dates of the ships to the Han River, the need for various testing processes was cited. Head Joo explained, "There was a request from the shipyard for sufficient time for finishing the hull, equipment connection, land and sea trials, and test runs to more thoroughly inspect safety issues and because of delays compared to the original plan. We actively accepted this request to ensure the quality and safety of the ships."
Clarifications were also made regarding allegations of preferential treatment during the pier construction process. The issue arose because one company was selected immediately after bidding. Previously, Seoul had stated that under the Local Contract Act, a temporary exception allows for negotiated contracts in cases of single bids. Head Joo also said, "The reason for not re-bidding is that this project is being carried out under the River Act's river occupancy permit system and is not subject to the Local Contract Act, so a bidding process is not mandatory. Nevertheless, since the project was promoted through a bidding process to provide fair participation opportunities, re-bidding is also not mandatory."
Explanations were also provided regarding concerns about the financial soundness of the contractor. Seoul confirmed that as of October 1, 2024, the company has invested 7.6 billion KRW, which is more than the 3.5 billion KRW in equity capital, indicating no issues with equity capital procurement. It was also confirmed that payments for construction costs are being made appropriately, with 90% (10.4 billion KRW) of the contract amount (11.5 billion KRW) paid to the shipyard contractor (Global Heavy Industries) as of October 1.
Meanwhile, Seoul also addressed the criminal complaint filed by the pier contractor. Seoul stated, "The contractor's representative has been maliciously distributing recorded conversations and collected materials that were intentionally made during calls, causing significant disruption to the project," and "The contractor filed a criminal complaint with Eunpyeong Police Station on September 30 against those spreading false information for fraud, attempted extortion, and obstruction of business." According to the contractor's representative, Mr. A, who was supposed to participate as an investor in this project, did not fulfill his investment and investment inducement obligations and threatened the representative in July, saying, "If you do not deposit 500 million KRW, I will ruin the project."
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