The "ballpoint-pen spycam" case that arose during the selection of the Sigongsa for the Apgujeong 5 District reconstruction in Apgujeong-dong, Gangnam-gu, Seoul, is expanding beyond a pride battle between builders into a legal fight pitting major domestic law firms against each other.
According to the redevelopment industry on the 17th, Hyundai Engineering & Construction, advised by Kim & Chang, the No. 1 law firm in Korea, filed a police complaint on the 14th against three DL E&C employees who are competing for the Apgujeong 5 District construction contract.
Earlier, on the 10th, during the Apgujeong 5 District reconstruction bidding, a DL E&C employee was caught secretly filming bid documents with a ballpoint-pen-shaped hidden camera.
Hyundai Engineering & Construction raised the pressure, citing a potential violation of the union's announced "no photography" guideline. Based on Kim & Chang's opinion letter, Hyundai Engineering & Construction argued that DL E&C committed a serious illegal act that undermines the legality and fairness of the method of competition.
A Hyundai Engineering & Construction representative said, "Even though the union repeatedly guided that 'photographing bid documents is prohibited,' a DL E&C affiliate was caught secretly filming the bid documents with a pen camera without the union's or Hyundai Engineering & Construction's knowledge, which halted the project process and disrupted the union's schedule," adding, "Sealing documents that include key competitive elements is a mechanism to prevent information asymmetry among bidders and to maintain a fair competitive environment so that one side does not secure an advantageous position."
DL E&C is countering Hyundai Engineering & Construction with legal advice from Lee & Ko and Yoon & Yang LLC, two of Korea's top six law firms.
On the 11th, DL E&C apologized in an official letter to the union under CEO Park Sang-shin's name, saying, "It occurred due to individual zeal, and there was no intention whatsoever to use it for an improper purpose or to undermine the fairness of the bidding process." The company also said it immediately removed the employee involved in the unauthorized filming from work related to the Sigongsa bid.
DL E&C argued that because the incident occurred while checking documents scheduled for disclosure, it does not infringe on the fairness of the union's Sigongsa bidding or on the members' right to choose.
It said the incident occurred while placing a sealing stamp across the boundary of documents after both companies had submitted their bid proposals and they had been opened, so it is not grounds for voiding the bid.
With the major law firms hired by the two builders locked in a tight legal interpretation standoff, the dispute could spill into the courts.
The Apgujeong 5 District union asked Gangnam-gu, the competent district office, for an authoritative interpretation of the controversy. On the 15th, Gangnam-gu sent the union an official letter ordering a halt to the contractor selection process until the interpretation is issued.
Apgujeong 5 District is a project to reconstruct Hanyang Apartment phases 1 and 2 in Apgujeong-dong, Gangnam-gu, Seoul, to create a new complex of eight buildings with 1,397 households, from five basement levels to 68 aboveground floors.