Posco E&C's Song Chiyoung Faces Crucial October: Cheongju and Seongsu Bids, National Assembly Audit Lined Up [Real Estate AtoZ]

Most of 103 Construction Sites Resume Operations
Major Bidding Competition in October, First Since CEO Change
National Assembly Audit Also Scheduled for October... 'Safety Management' Put to the Test
Shinansan Line Investigation Committee's Conclusion Due in January, Infrastructure Bids Remain Uncertain

Posco E&C is accelerating its return to full normalcy by resuming construction at most sites that had been entirely suspended due to a series of fatal accidents. While focusing on restarting operations, the company is also preparing to compete for new projects next month, including the Cheongju Bokdae-dong mixed-use development and the Seongsu District 2 redevelopment. These will be the first bids since the replacement of the CEO following the accidents. Around the same time, a National Assembly audit is scheduled, which is expected to serve as a major test of President Song Chiyoung's leadership.

POSCO E&C is holding an exhibition of accident cases to raise safety awareness in the first-floor lobby of its Songdo headquarters. Photo by Yoo Gyoh.

According to Posco E&C on September 16, construction has resumed at most of its 103 sites nationwide. The decision to restart each site was made after a five-step verification process, including inspections by external experts, confirmation of improvement measures, and approval from the Chief Safety Officer (CSO). This marks a near-complete normalization about 40 days after all construction was halted on August 4 due to consecutive safety incidents.

While some sites remain suspended and are being addressed, the company is also entering its first bidding competition since the CEO change on August 6. The initial target is the Cheongju Bokdae-dong mixed-use development project, which involves building apartments and commercial facilities within the permissible range of the city management plan on a site of approximately 17,000 square meters. The Posco E&C-Meritz Securities consortium will compete against the Daewoo Engineering & Construction-Korea Investment & Securities consortium. As a public-private partnership, Cheongju City will accept project proposals on October 15 and select a preferred negotiating partner after a review by the evaluation committee.

On the 28th of the same month, Posco E&C is scheduled to bid for the Seongsu District 2 redevelopment project, which the company has long pursued. With a total project cost of 1.7846 trillion won, it is not only a large-scale project but also crucial for strengthening the company's brand competitiveness. The site, located along the Han River, will feature a 250-meter-tall building, and Posco E&C plans to mobilize all its high-rise construction expertise to create a landmark on the riverbank. Coincidentally, the first completed complex under the Otierre brand (Otierre Banpo) will begin occupancy in the same month, enabling Posco E&C to present this achievement to the project association members as a track record. Otierre is Posco E&C's high-end brand, launched in 2022, relatively later than other major companies.

However, the uncertainty caused by the accidents has not been fully resolved. While Posco E&C has resumed bidding in the building construction sector, it has suspended new bids in the infrastructure sector, where most of the fatal accidents occurred. The conclusion of the construction accident investigation committee regarding the Shinansan Line collapse has been postponed by four months to January next year, prolonging debates over the scope of responsibility. Depending on whether the committee attributes structural causes and responsibility to the client or the contractor, Posco E&C's eligibility and reputation for future public infrastructure bids could be directly affected. With a National Assembly audit also scheduled next month, President Song Chiyoung's emphasis on safety management will likely be evaluated by both political circles and public opinion.

Meanwhile, since September 9, Posco E&C has been holding an "Exhibition of Accident Cases to Raise Safety Awareness" in the first-floor lobby of its Songdo headquarters, displaying photographs of construction accidents from the past decade. The exhibition is located where employees pass during their commute, with the aim of openly sharing past incidents and lessons learned with staff, rather than concealing them. Both inside and outside the company, this is seen as an effort to continuously reinforce safety awareness within the organization. A Posco E&C representative stated, "Currently, safety is our top priority, and for the time being, we will focus on internal improvements rather than external publicity," adding, "We are prioritizing bidding activities for projects that are truly essential to the company."