The 'Hannam 4 District' redevelopment association received a request from the Seoul city and Yongsan district office to rectify the operation of multiple promotional centers by construction companies. The possibility of Samsung C&T and Hyundai Engineering & Construction closing their respective promotional centers earlier than scheduled has increased to promote their proposals.
According to the repair industry on the 31st, the chairman of the Hannam 4 District association sent a message to members on the 30th, saying, "The association held meetings regarding issues and corrective action plans for the operation of promotional centers with the Yongsan district office on the 26th and with the Seoul city on the 27th," adding, "The city demanded a strong action plan, which includes shortening the duration of the promotional center operations."
The reason the Yongsan district office and the Seoul city hall intervened in the Hannam 4 District bidding process is that the promotional centers for selecting construction companies for the repair project are limited to just one provided by the association.
Article 34, Section 4 of the Ministry of Land, Infrastructure and Transport’s standards for processing contracts in repair projects states, "The project implementer may provide one open promotional space after holding a joint promotional briefing for applications from construction companies, or designate one space that construction companies wish to jointly prepare and temporarily provide as a promotional space."
The selection criteria for construction companies in Seoul's public-supported repair projects also state, "If model houses, stages, parasols, tents, and temporary structures are found to be installed in places other than the one open promotional space provided by the association, measures such as nullification of the bid and disqualification of selection as a construction company may be imposed."
Regulations related to the promotional center in the bidding guidelines for the Hannam 4 District, obtained by CHOSUNBIZ, were confirmed to be the same as those for selecting construction companies in Seoul's public-supported repair projects.
However, Samsung C&T and Hyundai Engineering & Construction have been actively promoting their proposals to members since the 24th by constructing or leasing promotional centers in Itaewon-dong, Yongsan-gu, Seoul. Hyundai Engineering & Construction is using a building on the site of the Crown Hotel at 34-69 Itaewon-dong, Yongsan-gu, with an area of 7,011 square meters as the promotional center for Hannam 4 District. Samsung C&T is also using the 5th to 6th floors of the Myungbo Building at 34-158 Itaewon-dong, Yongsan-gu, as a promotional center.
Earlier, the Hannam 4 District association explained to its members on the 20th that they received a review letter stating that it was possible to operate promotional centers by construction companies through legal advice from a law firm, but they have been subjected to sanctions from the Seoul city and the Yongsan district office.
The Hannam 4 District redevelopment project is a plan to redevelop the area at 360 Bogwang-dong, Yongsan-gu, Seoul, into new apartments with 2,331 units across 51 buildings, reaching 4 basement floors to 22 above-ground floors.