Daewoo Engineering & Construction distributed an apology to the association over the controversy that arose during the process of selecting the Sigongsa for the Seongsu 4 district redevelopment. Daewoo Engineering & Construction participated in the first bid, which recently closed, but did not submit key drawings, and the bid failed. A promotions agent for Daewoo Engineering & Construction is also suspected of violating the promotional proposal rules and bidding guidelines, including spreading allegations of collusion between the association and Lotte Engineering & Construction, which competed in the Seongsu 4 district bid.
According to the construction industry on the 20th, Daewoo Engineering & Construction submitted an apology to the Seongsu 4 district redevelopment association the previous day (on the 19th) under the name of CEO Kim Bo-hyeon. In the apology, Daewoo Engineering & Construction said, "We confirm that there were inappropriate actions, including the fact that we created controversy by not submitting the detailed drawings that competitor Lotte Engineering & Construction submitted during the process of selecting the Sigongsa for the Seongsu 4 district, and that some employees spread allegations of collusion between competitor Lotte Engineering & Construction and the association."
It also said, "We will do our best to establish fair and transparent procedures through consultations with the association and competitors and to prevent a recurrence. If we break this promise, we will not object even if the association forfeits the bid bond and decides to strip us of bidding eligibility."
The Seongsu 4 district redevelopment project will build apartments and ancillary and welfare facilities with six underground floors to 65 aboveground floors and 1,439 households on 89,828 square meters around 219-4, Seongsu-dong 2-ga, Seongdong District. The total construction cost is 1.3628 trillion won. The association declared the bid void on the 9th after the first bid closed, citing incomplete documents from Daewoo Engineering & Construction.
Daewoo Engineering & Construction and Lotte Engineering & Construction participated in the bid, but while Lotte Engineering & Construction submitted key drawings such as earth-retaining wall design and landscaping design, Daewoo Engineering & Construction did not, which led to the bid failing. The association issued a notice on the 10th for a second bid to select the Sigongsa, then canceled it.
Meanwhile, Daewoo Engineering & Construction's promotional activities during the bidding process also became an issue. The association said Daewoo Engineering & Construction repeatedly violated the promotional proposal rules and bidding guidelines, and that it sent eight official letters warning the company, but the violations continued. At the time, a promotions agent was known to have spread allegations of collusion between competitor Sigongsa Lotte Engineering & Construction and the association.
Seongdong District moved to provide administrative guidance on the rebidding procedure, and the Seoul metropolitan government is reviewing whether the Sigongsa selection process was lawful.