Sinbanpo 19 and 25 Construction Contractor to Be Selected Today... Promotional Material Review Disputes Continue Until Last Night [Real Estate AtoZ]

Password-Protected Files Reviewed by Association After Last-Minute Dispute
4.434 Billion Won Riverside Apartment Redevelopment Project
Samsung Raemian vs. POSCO Hautier

The construction company for the integrated redevelopment of Sinbanpo 19 and 25 complexes in Seocho-gu, Seoul, will be decided on May 30. As Samsung C&T Corporation and POSCO E&C compete for the project, disputes continued until the night before the general meeting over the pre-check procedures for joint briefing session promotional materials.

According to the maintenance industry, the Sinbanpo 19 and 25 Redevelopment Maintenance Business Association will hold a joint briefing session in the afternoon, followed by a general meeting to select the construction company on this day. At the general meeting, Samsung C&T Corporation and POSCO E&C will each present their proposed business terms to the association members, after which a vote will be conducted.

'Raemian Illuchella' perspective. Samsung C&T Corporation

On the evening of May 29, the day before the general meeting, POSCO E&C’s promotional materials were reviewed at the association office. Initially, POSCO E&C proposed a public review involving all association executives to ensure fairness. Previously, POSCO E&C had objected to what it called unilateral text messages sent by full-time executives of the association, arguing that the current leadership had violated their duty of neutrality. The association considered holding an emergency board meeting that evening to discuss the matter, but the plan was canceled when members visited the office in protest. In the end, POSCO E&C underwent the review in the usual manner, with only the association president and vice president present.

The conflict began when POSCO E&C submitted its promotional materials with password protection. On May 27, the association had requested both companies to submit their materials for the joint briefing session. Samsung C&T Corporation visited the association office on the morning of May 28, demonstrated its promotional video and materials in the presence of the association president and vice president, completed the pre-check, and then retrieved the materials. In contrast, POSCO E&C submitted its files online on the morning of the same day, but set a password, preventing the association from reviewing the contents.

POSCO E&C argued that if it unlocked the password for its materials while Samsung C&T Corporation had already retrieved its own, there was a risk of information leakage to its competitor. POSCO E&C stated that it visited the association office on the afternoon of May 28 to explain its position, but the association deemed that substantial verification of the promotional materials had not taken place.

The association classified POSCO E&C’s password protection as a violation of promotional guidelines. On May 28, the association sent an official letter to POSCO E&C, stating, “By password-protecting the submitted materials and preventing content verification, you are refusing to allow review of the materials,” and requested resubmission by 11 a.m. on May 29 so that the contents could be verified. The association did not send any separate resubmission requests to Samsung C&T Corporation, which had already completed its offline demonstration.

Perspective view of 'The Banpo Autier'. Posco E&C

On May 29, POSCO E&C sent an official letter to the association, suggesting that both companies’ representatives and the entire board of directors review the materials together to ensure fairness. According to the letter POSCO E&C sent to the association, regarding its visit on the afternoon of May 28, it stated, “We conveyed our position,” rather than saying the contents had been disclosed. While there were alternatives, such as disclosing the materials offline and then retrieving them, the company left only the password-protected files with the association, effectively skipping an in-person content verification process.

Just before the emergency board meeting was to be convened on the evening of May 29, about 10 association members visited the office to strongly protest that it was unfair to set up a separate public review session based on one construction company’s proposal. Immediately after their protest, POSCO E&C withdrew its proposal for a broader review and, following the same method as Samsung C&T Corporation, unlocked the files and had the contents reviewed in the presence of only the association president and vice president.

Although the procedural dispute was temporarily settled ahead of the construction company selection general meeting, tensions between the two sides are likely to continue through the joint briefing session and the voting process. Association members will compare the business terms of both companies based on the POSCO E&C materials that passed inspection the previous night and the Samsung C&T Corporation materials that had already been reviewed.

This is the first direct competition between the two companies for a maintenance project since the Busan Chokjin 2-1 zone in 2024, about two years ago. At that time, POSCO E&C won the contract by securing 58% of the vote at the association’s general meeting, defeating Samsung C&T Corporation. The current bidding war for the Sinbanpo 19 and 25 complexes has drawn significant industry attention, as it represents a rematch for a prime riverside site in Seoul’s Gangnam area.

The Sinbanpo 19 and 25 integrated redevelopment project involves combining Sinbanpo 19 and 25 complexes with Hanshin Jinil Villat and Jamwon CJ Village to reconstruct them as a new apartment complex. The plan calls for seven buildings ranging from four basement levels to 49 above-ground floors, with an estimated construction cost of 443.4 billion won. Samsung C&T Corporation has proposed “Raemian Iluchella,” while POSCO E&C has proposed “The Banpo Hautier.”

This content was produced with the assistance of AI translation services.