The construction work for the 'Yongin Advanced System Semiconductor National Industry Complex (Yongin Semiconductor National Industrial Complex)' is set to proceed with simultaneous bidding for sections 1 and 2 in August. According to the existing plan, the combined project cost for both sections is expected to be around 2.5 trillion won, but there is a significant possibility that this will be adjusted during the bidding. This project marks the beginning of the 'world's largest semiconductor cluster' being developed by Samsung Electronics, which has previously seen two failed bids for the construction work of section 1, causing controversy. The construction industry is paying close attention to how the Korea Land & Housing Corporation (LH) will change its preliminary qualification (PQ) criteria for bidders.
According to the construction industry on the 31st, LH is expected to simultaneously issue orders for the construction of sections 1 and 2 of the Yongin Semiconductor National Industrial Complex in August. Based on the existing plan, the project cost for section 1 is 1.3814 trillion won, while section 2 is approximately 1.1 trillion won, totaling 2.5 trillion won. This construction will proceed under the construction management responsibility (CMR) method, which is based on a consortium structure composed of leading civil engineering firms. The CMR method holds the construction management company responsible for both design and construction management, primarily used in large-scale composite projects.
LH appears to have decided on simultaneous bidding after expecting a delay in the project due to two failed bids for section 1, which had been underway since April. LH needs to select a construction company by 2028 so that Samsung Electronics can use the site.
An LH official in charge of the Yongin Semiconductor National Industrial Complex stated, "We are keeping the possibility of simultaneous bidding open and are reviewing various methods for rebidding."
There is a significant possibility that the scale of the projects for sections 1 and 2 will change. There has been controversy over whether the PQ criteria in the two bids for section 1 were set too high, potentially aimed at specific construction companies. However, it seems that instead of lowering the PQ criteria, LH is considering adjusting the scope of the projects for sections 1 and 2. There is a strong likelihood that they will issue a separate order excluding the residential complex construction or attaching part of section 1 to the relatively smaller section 2.
At the time of the controversy, LH stated that the construction of the Yongin Semiconductor National Industrial Complex is a high-level project requiring urgency and expertise, directly linked to semiconductor plant operations, and therefore, the bidding criteria are justified. A representative from LH noted, "Both sections 1 and 2 are currently in the stage of undergoing detailed designs, and the scale of the projects can be changed at any time."
During the first bid for section 1 in April, LH required that the firms have at least 1.3836 trillion won in completed projects over the past 10 years to induce competition among large construction companies. Those without performance records equivalent to the project cost would see their evaluation scores reduced. It was considered quite unusual for LH to set monetary standards, as it had previously evaluated based on construction area in CMR orders.
In the first bid, both Hyundai E&C consortium and Daewoo E&C consortium responded, but the Daewoo E&C consortium was disqualified due to insufficient PQ performance. Daewoo E&C later requested a relaxation of the standards, but LH maintained the same conditions in the second bid. Consequently, it is understood that Daewoo E&C requested to lower the PQ criteria to one-third of the project cost.
An official from a large construction company said, "I understand that LH wanted the large construction companies to form a consortium to compete, considering the importance of this project," adding, "There is a set timeframe to hand over the site to Samsung Electronics, so I expect it will be issued simultaneously."