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Incheon’s Songdo Severance Hospital Project: Are Local Builders Being Shut Out?

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Chairman Kim Dae-jung of the Incheon City Council conducting council duties.  Photo courtesy of the Incheon City Council

Incheon City Council has raised concerns that the bidding approach for the Songdo Severance Hospital construction project is unduly limiting participation by local contractors.

On May 12, the council said Chairman Kim Dae-jung warned that the recently announced bidding structure is skewed toward large builders, effectively making it difficult for Incheon-based small and medium-sized construction firms and electrical contractors to participate in the project.

The Songdo Severance Hospital construction is a major project pursued with support from the Incheon Free Economic Zone Authority, with the city providing the site in Songdo International City and administrative assistance. 

But because the bidding criteria prioritize technical-proposal-based bids and extensive construction track records, local firms are being shut out from serving as prime contractors. 

In particular, electrical contractors have objected to the use of an integrated contracting model, arguing it contradicts the principle of separate procurement for electrical work.

Chairman Kim said, “Because this project is carried out with public support, the value of cooperation with the local community must be taken seriously,” and he urged officials to create concrete measures that allow local companies to participate directly in construction. 

He also said that Incheon City and the Incheon Free Economic Zone Authority should systematically include provisions for local firm participation and mechanisms to return economic benefits to the region when pursuing large-scale investments.

The Incheon City Council’s Construction and Transportation Committee plans to continue monitoring local firm participation and the project’s economic impact. 

Incheon — Lee Chun-man, Reporter lcm9504@viva100.com

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