Hannam 4 District, Sharp Conflicts from First Briefing... "Cheap Because It's Bad" vs "Han River View Is False"

First Joint Briefing at Itaewon Church on the 23rd
Samsung C&T and Hyundai Construction Bow Deeply to Make an Impression
Blunt Criticism on Business Conditions
Union Members Say "Negative Remarks Are Regrettable"

"As you have seen the proposal, there is a reason why Hyundai Engineering & Construction's (construction cost) is low. In short, it is cheap because it is bad." (Samsung C&T)

"Samsung C&T's 100% Han River view guarantee is false and exaggerated advertising that does not reflect the adjacent Hannam 3 and 5 district architectural plans." (Hyundai Engineering & Construction)

A Samsung C&T official is attending the first joint briefing session held at Itaewon Church in Yongsan, Seoul on the 23rd and giving a presentation. (Photo by Kim Hye-min)

Samsung C&T: "The biggest benefit is the Han River view... Low construction cost and short construction period are unrealistic promises"

On the afternoon of the 23rd, at Itaewon Church in Yongsan-gu, Seoul, the first joint briefing session for selecting the contractor for Hannam District 4 was held. Despite it being their first meeting, both companies openly criticized each other's business conditions and feasibility, showing sharp confrontations. They even bowed deeply to the union members to make a strong impression. However, the session was more focused on criticizing the opponent's proposals rather than promoting themselves, leading to evaluations that the briefing turned into a slander battle.

Samsung C&T, which took the floor first, emphasized that it only bid for Hannam District 4 within Hannam New Town to highlight differentiation. Kim Sang-guk, Executive Vice President of the Housing Business Division, said, "We did not participate in other districts because we believe District 4 is the best complex," adding, "We have never stopped construction once, and we will definitely achieve 100% Han River views. Please let this be a wonderful project where the first meets the first."

Unlike Samsung C&T, which promised 100% Han River views to union members, Hyundai Engineering & Construction was highlighted as having given up on this. A Samsung C&T official said, "The biggest benefit to union members is the Han River view. In Banpo One Bailey, there is a 1.4 billion KRW difference between units with and without a Han River view," adding, "We focused on that aspect to create Han River views, but Hyundai Engineering & Construction gave up on Han River views for more than 317 households."

They also pointed out that Hyundai Engineering & Construction's claims of low construction costs and short construction periods are unrealistic promises. The official said, "A construction company with about three construction stoppages is misleading union members as if they received a pardon by presenting a responsibility completion guarantee letter," and directly stated, "A company that has stopped construction before will stop again." He continued, "They excluded 96 billion KRW of essential project costs from the bid and set the proposed interest rate to apply only to essential project costs."

They emphasized that the sky bridge designed on the Han River side has low feasibility. A Samsung C&T official said, "The Seoul Metropolitan Government's policy is that privatization of the Han River side is absolutely not allowed. That is why the sky bridge was removed in Hannam District 2, and the location was inevitably moved in the District 4 design," adding, "Bringing something impossible and promising to deliver it is just a slogan and will never be kept. Please remember that."

A Hyundai Construction official is attending the first joint briefing session held at Itaewon Church in Yongsan, Seoul on the 23rd and giving a presentation. (Photo by Kim Hye-min)

Hyundai Engineering & Construction: "Interest rate and construction period are both definitive... Samsung is full of toxic clauses"

Hyundai Engineering & Construction emphasized lower construction costs and shorter construction periods than Samsung C&T and promised to keep their commitments. Lee In-gi, General Director of the Housing Business Division, said, "We proudly submitted five major guarantee letters, including the responsibility completion guarantee letter, for the first time in redevelopment project history," adding, "After move-in, the value of the complex will compete through good design and products."

Hyundai Engineering & Construction criticized Samsung C&T's Han River view promises and designs through a video. They claimed, "Samsung C&T's 100% Han River view for union members is false and exaggerated advertising that does not reflect the Hannam 3 and 5 district architectural plans at all," adding, "If AI simulation is conducted under the same standards as Hyundai Engineering & Construction, only 650 union households, or 60% in total, have the view." They further criticized, "They designed a bizarre and deformed main building with a twisted structure," and "The small unit barrier design on Jangmun-ro violates Seoul's policy to plan so that the road landscape does not become a cliff due to buildings, making approval impossible."

They also said that Samsung C&T's business proposal contains many clauses that can be changed through consultation with union members, which could lead to huge additional charges. A Hyundai Engineering & Construction official said, "Hannam District 4 is a hilly terrain with a high proportion of bedrock, and they say construction costs will increase if geological conditions after groundbreaking are not typical but special," adding, "The interest rate is also conditional and the construction period is based on using the preceding urban planning road." He continued, "They also specify that in case of unsold commercial units, payment in kind and price will be negotiated later in case of rapid market changes, but isn't unsold inventory exactly what happens then?" and sharply criticized, "All of Samsung C&T's conditions are full of toxic clauses."

As the dispute between the two companies continued, some union members exchanged loud voices on-site. A union member (female in her 60s) who attended the briefing said, "Hyundai Engineering & Construction pointed out things more objectively and showed confidence," while another union member (male in his 60s) evaluated, "I don't think Hyundai Engineering & Construction's sky bridge will be realized as Samsung C&T pointed out." Another union member (male in his 50s) said, "Hearing the talks made my decision clearer," but also expressed regret, saying, "The negativity was too intense, so it was rather unpleasant to watch."