Samsung C&T, the largest construction company in South Korea, sent a warning letter in the name of its CEO to the reconstruction association in Gangnam. Samsung C&T stated through an official document that if the association does not correct the distorted information about Samsung C&T, it will take legal action. The association recently claimed that the association president sent a group text message in their name, alleging that Samsung C&T delayed and obstructed the reconstruction project and that similar behavior is occurring in other maintenance business sites.
It is quite unusual for Samsung C&T, the industry leader, to mention legal actions against a specific reconstruction association. This is analyzed to be because, with many pieces of information being shared informally in maintenance business sites, leaving distorted information about Samsung C&T unaddressed could jeopardize the ability to secure construction rights in other business sites.
According to the maintenance industry on the 19th, Samsung C&T sent an official document titled 'Action regarding false information notices related to bidding' to the apartment reconstruction maintenance project association (hereinafter referred to as the association) for the Gaepo Jugong 6·7 Complex in Gangnam on the 13th.
In an official document under the name of CEO Oh Se-cheol, Samsung C&T noted, "In the text letter sent to the members of your association under the name of the association president, it was stated that 'Our company did not participate in the bidding process, causing delays in selecting a construction company' and that 'The president's corruption and favoritism towards specific companies are blamed for sabotaging clean bids in secret ways in other business sites.'" It further stated, "However, this is entirely untrue, and by providing false information to the members, your association is causing serious defamation against our company, resulting in a significant hindrance to our legitimate business activities." Additionally, it mentioned, "Therefore, we request immediate correction notices on unfounded reports to avoid misunderstandings among all members, and if a correction notice is not issued, our company will have no choice but to take all legal actions related to this matter."
The Gaepo Jugong 6·7 Complex reconstruction association held a site briefing on January 21 and proceeded to bid for construction company selection on March 12, but it failed to select a contractor as Hyundai E&C was the only bidder. Samsung C&T attended the site briefing and submitted a letter of intent to participate in the bidding at the end of January but did not respond to the bidding.
The day after the failure to select a construction company, on March 13, association president Yoon sent a group text message to the members, criticizing Samsung C&T. In the message, President Yoon stated, "One of the two companies that had expressed their intention to bid and submitted a letter of intent (Samsung C&T) gave up at the last minute, leading to the failure of the bidding and causing the original timeline for selecting a contractor to be delayed from April to June."
He also claimed, "The company that gave up this bidding has also withdrawn from bidding in other maintenance business sites in the same or similar manner, and as criticism rose due to this, we received reports indicating that the association president's corruption and favoritism are blamed for obstructing clean bids through diverse and covert means." He continued, "However, our association will not be swayed by construction companies trying to control the association, and we plan to issue a prompt re-bid notification for contractor selection tomorrow (March 13) to do our utmost for the benefits of our members, so we ask all members to trust and wait for our association."
In the maintenance industry, it is common for companies to submit letters of intent to bid after attending site briefings but then not participate in the bidding. In such cases, associations generally express their disappointment, but it is rare to publicly criticize a specific construction company. Therefore, as President Yoon's message became known in the industry, a controversy arose, particularly in the maintenance sector in Gangnam. There has been increased skepticism about whether Samsung C&T, which showed a willingness to participate in the bidding, has repeatedly failed to do so, thus sabotaging the project.
Previously, in the selection of a contractor for the reconstruction project of 'Jamsil Woosung 1·2·3 Complex' in Songpa-gu, which closed on the 4th, Samsung C&T was expected to bid, but since Samsung C&T did not participate, the complex also failed to select a construction company. The Jamsil Woosung 1·2·3 Complex is one of the largest reconstruction sites in Jamsil-dong, with a total project cost of 1.7 trillion won.
A source in the maintenance industry noted, "There has been a growing atmosphere of distrust towards Samsung C&T centered around certain reconstruction sites, and it seems that President Yoon, having sent an official text message, led Samsung C&T to determine that this situation could not be left unaddressed."