Hanho E&C Denies Lobbying Allegations Over Sewoon District Rezoning

Hanho E&C has denied allegations that it paid hundreds of millions of won in lobbying fees to a former senior Seoul Metropolitan Government official in exchange for favorable treatment.

In a statement Wednesday, the construction company claimed it was actually harmed by policy changes rather than receiving special treatment. "Our project and permits were delayed by a full 30 months due to Seoul's green urban policies," the company said. "Every time the Seoul mayor changes, policies change, and we have repeatedly had to revise our business plans accordingly, suffering damages far from any special treatment."

A media outlet had earlier reported that Hanho E&C signed a consulting contract with a company established by a former Grade 1 Seoul city official and lobbied for increased floor area ratio in the Sewoon 3 and 4 districts. MK Urban Research Institute was founded by the former official in question.

Hanho E&C explained that the consulting contract with MK Urban Research Institute ran from September 2022 to January 2025. "Since the contract was signed after the Sewoon District master plan was announced in April 2022, it has absolutely no connection to Seoul's floor area ratio increase," the company said.

The company also denied any link between the consulting contract and its land acquisition in Sewoon District 4. "Our first land purchase contract in Sewoon District 4 was signed in June 2022, three months before the new business consulting contract was signed in September 2022," the company emphasized.

"MK Urban Research Institute only provided risk assessment consulting for new development projects we were reviewing, such as the rugby stadium development near Onsu Station, and conducted no lobbying activities whatsoever related to the Sewoon District," the company added.

Hanho E&C further stated that "MK Urban Research Institute was not involved in the project financing for Sewoon Districts 3-2 and 3 that took place in December 2024," adding that "the consulting contract was limited to development advisory services."

The Seoul Metropolitan Government also issued a clarification, stating that "contracts between retired public officials and private companies are private matters unrelated to the city government." The city said the media report "distorted the situation as if there were collusive ties between Seoul and Hanho E&C."

"The former Grade 1 official retired before Mayor Oh Se-hoon, who was elected in the April 7, 2021 by-election, took office," the city added. "He has no connection to the current Sewoon District development."