"‘Illegal Promotion by Construction Companies Will Result in Bid Disqualification’... Jung-gu Notifies Sindang 10 District Association of Disciplinary Announcement"

Convocation Requested by Association Amid Rising Allegations and Reports of Illegal Promotion

Jung-gu, Seoul (District Mayor Kim Gil-seong) announced on the 22nd that it held the Urban Dispute Mediation Committee twice this month regarding illegal promotional activities during the selection of the contractor for the Sindang 10 District housing redevelopment project, decided on a disposition recommendation, and notified the association the day before.

The disposition recommendations include ▲ shortening the operation period of the joint promotional space ▲ conducting recurrence prevention education ▲ immediate exclusion from bidding if new violations occur after the recommendation. The district applied different levels of disposition to each contractor considering the timing and severity of the violations.

This Urban Dispute Mediation Committee was convened at the request of the Sindang 10 District association as suspicions and reports of illegal promotion continued. Article 116 of the “Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions” allows autonomous districts to establish an Urban Dispute Mediation Committee to mediate disputes arising during maintenance projects.

Jung-gu formed the committee with experts experienced in maintenance projects, including lawyers, professors, architects, and appraisers. The level of disposition review was strictly discussed from the beginning to objectively judge allegations of misconduct and fundamentally prevent recurrence. The Sindang 10 District association, which received the disposition recommendation, plans to hold a general assembly to decide the final disposition.

Since the bidding announcement for the contractor selection of Sindang 10 District in September, Jung-gu has firmly dealt with illegal activities through joint education on enforcement standards and operation of a misconduct crackdown team (report center), while also promoting promotional activities without suppression by implementing a promotional public system such as live streaming of contractor promotions and supporting the association’s social media (SNS) promotions.

After the disposition, the district plans to strengthen crackdowns on illegal promotions and prepare joint promotional measures to ensure sufficient information is provided for project advancement.

With the recent strengthening of Seoul city’s contractor selection criteria, conflicts due to violations of contractor promotion rules are expected to increase. Jung-gu’s recent action presents a direction where conflicts can be proactively resolved through active intervention by the administrative authority as a public supporter when facing contractor selection conflicts, and this case is expected to become a model for many local governments.

District Mayor Kim Gil-seong said, “I hope that contractors recognize the seriousness of illegal promotional issues and strive to prevent recurrence so that a fair and dispute-free contractor selection can be achieved.”