The bidding process for the new Songdo Severance Hospital construction has become embroiled in controversy over the exclusion of local contractors. Critics argue that while Incheon City provided the site and administrative support for the project, local Incheon construction firms find it virtually impossible to participate.
Kim Dae-jung, chairman of the Incheon Metropolitan Council's Construction and Transportation Committee (People Power Party, Michuhol-gu 2), publicly raised the issue on Wednesday. The bid, announced by Yonsei University Health System on the 16th of last month, closes on June 30.
Songdo Severance Hospital is a project Incheon residents have long awaited. The Incheon Free Economic Zone Authority (IFEZ) provided a site within Songdo International City to attract Yonsei University and Severance Hospital. Various agreements and administrative support followed.
Public expectations ran high. Patients with serious conditions in the southern Seoul metropolitan area, who previously had to travel to Seoul for treatment, will be able to receive care in Incheon. Benefits for the local economy were also anticipated.
The problem is that the project has been delayed far longer than expected. Just as full-scale construction is finally set to begin, another controversy has erupted.
◆ "Only Large Firms Can Meet These Conditions"
The central issue is that the bidding conditions are structured to favor major construction firms. The project uses a technical proposal bidding method, which requires a track record on large-scale projects and advanced technical capabilities. There is virtually no room for small and mid-sized Incheon construction firms to participate as prime contractors.
The method of ordering electrical work has also come under scrutiny. By law, electrical work on projects above a certain scale must be ordered separately to protect specialized contractors. This time, however, the electrical work was bundled with the building construction into a single order. Local electrical contractors have been left with no option but to enter as subcontractors.
◆ "Isn't This a Project on Incheon Land?"
Chairman Kim highlighted the nature of the project, describing it as a cooperative venture in which the public sector laid the groundwork, not a purely private development. The IFEZ provided the site and signed an MOU to establish the framework for the project.
"We have come this far thanks to Incheon's support and its citizens' expectations, but when it comes to the actual construction site, there is no place for Incheon firms to stand," he said. "It is a difficult situation to accept."
Kim stressed that even a private project must move forward together with the local community. "Since this project has been pursued with Incheon's land and the city's support, the participation of local firms and the return of economic benefits to the region are a natural responsibility," he said.
In response, the IFEZ said, "Because this is a private project, the structure makes it difficult for us to intervene in the bidding method." It added, "Since the project has been pursued with Incheon City's support, we plan to continue monitoring the actual level of local firm participation and the project's contribution to the local economy."
