Yongsan District Office Halts Overheated Competition in Hannam 4 District: "Reduce Promotion Centers"

As the bidding competition for Hannam 4 District in Yongsan-gu, considered the biggest redevelopment project in Seoul, heats up, the Yongsan District Office has stepped in to put a brake on it. Samsung C&T and Hyundai Construction each set up separate promotional centers to appeal to the union members, but the district office has demanded that they reduce them to one. Amid numerous individual promotional complaints received by the district office, they are also considering forming a joint inspection team to conduct checks.

According to industry sources on the 23rd, the Yongsan District Office recently sent an official letter to the Hannam 4 District union requesting that the contractors reduce their individually established promotional centers to one and operate it jointly. A Yongsan District Office official explained, "Individual promotional centers violate the criteria for contractor selection," adding, "Since many complaints were received, we inquired with the Seoul Metropolitan Government, which established the regulations, and received a response that a joint promotional center must be operated."

The Seoul Metropolitan Government, through the 'Public Support Maintenance Project Contractor Selection Criteria,' prohibits contractors from setting up promotional centers except for one open promotional space provided by the union. This is to prevent excessive promotion and unfair bidding. Hannam 4 District also reflected this in its contractor selection guidelines.

Originally, starting from the 24th, Samsung C&T planned to open a promotional center at the Myungbo Building near the entrance of Itaewon, and Hyundai Construction planned to set up a promotional center on the site of the old Crown Hotel to begin active promotion to union members. However, with the Yongsan District Office stepping in, both construction companies found themselves in a difficult situation. Operating separate promotional centers would be considered individual promotion, which could invalidate the bid. In the worst case, the contractor's selection qualification could be revoked, and the bid deposit of 50 billion KRW would be forfeited to the union, potentially causing conflict.

The Hannam 4 District union is also in a difficult position. The union had guided contractors that individual promotional centers were possible, referencing the fact that contractors participating in the nearby Yongsan-gu Namyeong 2 District bid operated individual promotional centers. Based on legal advice, the union judged that operating individual promotional centers was possible and intends to proceed as originally planned regardless of the Yongsan District Office's request. Union head Min Byung-jin said, "We are prepared and will proceed on our own path," adding, "The Yongsan District Office spoke too abruptly, and the union now cannot stop."

If the union insists on proceeding, the district office has no means to enforce a halt. Even if the Yongsan District Office declares the bid invalid, the decision to revoke the contractor's selection qualification is to be made by the union through a delegate meeting. A union official said, "Union members want competitive bidding, so they believe both construction companies should be carried through to the end," adding, "Even if a delegate meeting is held, the revocation of contractor selection will not pass." However, there are concerns that friction between the Yongsan District Office and the union could cause fallout in other areas such as permits and approvals.

The Yongsan District Office is closely monitoring the overheating competition among contractors. A district office official said, "Recently, complaints related to individual promotion have been increasing again," adding, "We are considering whether to form a joint inspection team to conduct checks or to hold a related committee meeting for deliberation. Since reports and complaints keep pouring in, we think some form of organization is necessary."

Meanwhile, Hannam 4 District will hold its first joint promotional briefing session for contractors this afternoon and officially begin the selection schedule. After a total of four briefing sessions, the final contractor is scheduled to be selected on January 18 of next year.