"Despite Being a Safety-Driven Decision, Criticized as a Trick or Preferential Treatment"
Forfeiting Basic Design Rights... Hoping to Maintain the Consortium
Hyundai Engineering & Construction announced on the 30th that it has decided not to participate in the site development project for Gadeokdo New Airport. The company had been in talks with the government about extending the construction period by two years, as it was difficult to meet the original timeline set by the government. However, due to growing controversies both internally and externally, Hyundai E&C has decided to withdraw from the project altogether.
The company stated, "It is impossible for us to accept unreasonable demands and conditions to shorten the construction period at the expense of airport safety, which are being driven by regional and political interests." The company also added, "We cannot accept the unjust stigma that we are causing delays in a national project or encouraging additional taxpayer spending for private gain."
Previously, Hyundai E&C was selected through a negotiated contract for the Gadeokdo New Airport site development project, which had failed to attract bidders several times last year, and had been negotiating design plans with the government. On April 28, the company proposed that the construction period should be extended from the government's suggested 84 months to 108 months, leading to controversy. After inspecting the actual construction site, the company concluded that the previously proposed timeline could not guarantee safety. Since the project plan would change, accepting this would require a new bidding process.
The company said, "After submitting the basic design documents (which included the 108-month construction period), we have faced baseless criticism from local governments and civic groups." The company continued, "Although our proposal corrected errors in the basic plan that were insufficient to guarantee public safety, there have been accusations of demanding additional construction costs, suspicions of preferential treatment, and criticism of shirking social responsibility, with calls to strip us of our status as the preferred negotiation partner." The company also expressed its frustration, saying, "There have even been protests in front of our headquarters, along with claims that we are intentionally delaying the airport opening for our own interests."
The company once again emphasized the difficulty of the Gadeokdo New Airport site development project. Hyundai E&C stated, "This is the largest and most challenging construction project in Korea, involving excavation volumes about three times that of Namsan in Seoul and a site area about 2.3 times the size of Yeouido." The company added, "Securing an appropriate construction period is the number one prerequisite that cannot be compromised for safety and quality assurance."
The Hyundai E&C consortium conducted technical reviews with more than 250 experts during the basic design process. The company said that the costs incurred for this amounted to 60 billion won. Hyundai E&C also made it clear that it would cooperate in selecting a successor contractor. The company stated, "We will actively cooperate with the government's re-bidding and successor selection process to ensure the project proceeds quickly," and added, "We will forfeit any rights we held regarding the basic design documents submitted to the government."
This position is a unilateral decision by Hyundai E&C, not a consortium-level decision. The company said it would work to ensure that the consortium does not dissolve and that other members can continue to participate in the project.
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