Probe targets no-bid presidential residence contract

A contractor hired for the relocation of the presidential residence under former President Yoon Suk Yeol sought nearly three times the allocated budget and was awarded the project without any review of competing bids, investigators said.

A special counsel team led by Kwon Chang-young said April 12 that it is examining allegations of preferential treatment linked to the 2022 relocation of the presidential residence to Hannam-dong in Seoul’s Yongsan District.

The Presidential Transition Committee replaced the originally selected contractor with interior design firm 21gram in April 2022. The initial contractor had already completed design blueprints and was preparing to begin construction, having previously worked on a banquet hall project at Cheong Wa Dae.

In May 2022, the Presidential Secretariat received a cost estimate from 21gram totaling 4.116 billion won, nearly three times the 1.44 billion won in contingency funds allocated for the project. The company submitted the estimate without providing design plans.

Investigators are looking into whether a senior Presidential Secretariat official allowed the project to move forward without additional review despite being informed of the cost discrepancy.

The Secretariat signed an initial 1.2 billion won contract with 21gram in May 2022 for construction of the residential quarters. About three months later, after securing additional funding, it is believed to have signed a second contract worth 1.6 billion won for the office building. The special counsel is examining whether the split contracts were not only unusual but also in violation of state contract law.

The investigation is also focusing on whether former First Lady Kim Keon Hee played a role in selecting 21gram, a company she was allegedly acquainted with.

Investigators have reportedly obtained testimony from company officials stating that in April 2022, Kim reviewed the original contractor’s design plans, repeatedly asked for feedback, and encouraged them to take on the project.

They are also verifying a written statement from former Vice Land Minister Kim Oh-jin, who said he was told by Yun Han-hong, then head of the presidential office relocation task force, that 21gram had been a company chosen by Kim.


Do-ye Go yea@donga.com