English translation of the original Korean report. Images and source documents may contain Korean text.

Bando Engineering & Construction has begun supplying 1,110 units of KAIIVE UBOR A in Incheon’s Gyeyang New Town, where the highest sale price for an exclusive 84㎡ unit is 826 million won.

While expansion costs, option fees, and interim loan interest are added separately from the sale price, the company refused to answer this newspaper’s inquiries regarding the ‘Birak Sikhye bottle exterior wall’ photo, which was pointed out at a past site, the sales advertisement error lawsuit, and quality control and consumer protection measures for this project.

According to the official resident recruitment announcement on the 2nd, KAIIVE UBOR A in Gyeyang New Town is a mixed-use complex where Bando Engineering & Construction is responsible for both development and construction.

It will consist of 1,110 units with exclusive areas of 84-93㎡ across a total of 16 buildings, ranging from two basement floors to a maximum of 15 above-ground floors. Block AC3 has 614 units in 8 buildings, and Block AC4 has 496 units in 8 buildings. Move-in is scheduled for August 2029. Starting with special supply on this day, applications for first priority will be accepted on the 3rd, and second priority on the 4th.

Although supplied on public land and subject to the housing price cap system, the highest supply price for an exclusive 84㎡ unit is 826 million won for Block AC3 and 822 million won for Block AC4. For Block AC3, an exclusive 92㎡ unit has a maximum price of 912 million won, and balcony expansion and additional optional item costs are not included.

In the same Gyeyang New Town, the highest price for an exclusive 84㎡ unit in the public offering for Block A6, which announced recruitment in August, was 716.54 million won. Comparing the highest supply prices, KAIIVE UBOR A Block AC3 is 109.46 million won, or approximately 15.3%, higher.

Compared to existing apartments by other construction companies in the vicinity, the price range varies. An exclusive 84.96㎡ unit at Gyeyang Haneulchae Park Fore, constructed by Kolon Global, confirmed through the Ministry of Land, Infrastructure and Transport’s real transaction price disclosure system, was traded for 570 million won (4th floor) on May 6 this year. Declared transactions in October for an exclusive 84.53㎡ unit at Hillstate Xi Gyeyang, constructed by Hyundai Engineering & Construction and GS Engineering & Construction, ranged from 810 million won to 859.5 million won (12th, 16th, 23rd floors).

Sales cases of construction companies with similar construction capability evaluation rankings are also subjects for comparison. In this year’s Ministry of Land, Infrastructure and Transport’s civil engineering and construction business evaluation, Bando Engineering & Construction ranked 39th, Jungheung Construction 41st, and Dongyang Construction Industrial 46th. This ranking is a comprehensive assessment of construction performance, management status, technical capability, and credibility, and is not a quality ranking for individual complexes.

Jungheung S-Class at Geomdan Lake Park Station, constructed by Jungheung Construction, set the highest sale price for an exclusive 84㎡ unit at 617 million won in its recruitment announcement last July. Dongyang Construction Industrial’s Geomdan Lake Park Station Paragon had a highest price of 645 million won for an exclusive 84㎡ unit based on its announcement in March this year. Both are private sales subject to the housing price cap system in Incheon’s public land, and balcony expansion costs are separate.

The highest price for an 84㎡ unit in KAIIVE UBOR A Block AC3 is 209 million won and 181 million won higher than these Geomdan complexes, respectively. However, the sale timing, land, location, and design differ, and existing apartment transaction prices also vary by age and floor conditions, so the entire price difference cannot be interpreted solely as a difference in brand or construction quality.

The down payment is 5% of the supply price, with the highest-priced 84㎡ unit in Block AC3 requiring an initial payment of 41.3 million won. Thereafter, 60% interim payment and 35% balance payment are made, and interim loans are planned to be arranged with deferred interest payment. It was announced that the interest paid on behalf of the buyer by the project owner must be fully paid by the contractor at the time of the balance payment, and contract cancellation cannot be claimed due to loan unavailability.

■ Controversy over exterior wall photos and changes in finishing materials… Sales advertisement error lawsuit lost in first instance

In relation to this sale, the exterior wall photos and quality control status of an officetel in Pyeongtaek, Gyeonggi Province, previously constructed by Bando Engineering & Construction, are also subjects for verification.

In a photo that circulated online last January, an object appearing to be a Birak Sikhye PET bottle is exposed in the peeled-off section of the building’s exterior wall. However, the actual shooting location and cause of the incident have not been confirmed.

At the officetel identified online, there was a lawsuit regarding sales advertisement errors, separate from the photo issue. The Pyeongtaek Branch of the Suwon District Court, in the first instance of a lawsuit filed by one buyer on May 15 last year, recognized contract cancellation and ordered the payment of 118.4 million won, including the down payment and penalty, plus interest. Part of the interest claim was dismissed.

The advertisement displayed content different from the actual zoning and land use districts, and was listed as an ‘absolute protection zone’ even though it was not an educational environment protection zone. Bando Engineering & Construction stated that it had corrected the errors during the editing process, notified individuals, and that there were no restrictions on usage, but the court ruled that prior corrections alone do not nullify the violation, and the errors were significant enough to affect the contract signing.

There were also past construction quality disputes. According to a 2018 report by E-Today, prospective residents of Bando UBOR A 4th in Dongtan 2 New Town raised issues regarding changes in some finishing materials and leaks in the underground parking lot. At the time, Bando Engineering & Construction explained that the changes were for design purposes and that semi-noncombustible materials were used, and Hwaseong City stated that the changes were not subject to approval.

Bando Engineering & Construction currently introduces on its official website a construction standard system and cross-checks between headquarters and sites as its quality management system.

Newsfield inquired about the authenticity of the so-called ‘Birak Sikhye bottle exterior wall’ photo and the results of its investigation and repair, the status of appeal and finalization of the Pyeongtaek sales advertisement error lawsuit and refund status, and the plan to disclose quality inspection and supervision records for the Gyeyang site, as well as the sales advertisement verification procedures, but Bando Engineering & Construction refused to answer.

Meanwhile, Bando Engineering & Construction is led by co-CEOs Kim Yong-cheol and Lee Jeong-ryeol. As of the corporate group disclosure in May, Bando Holdings holds 100% of Bando Engineering & Construction’s shares, and the largest shareholder of Bando Holdings is Kwon Hong-sa, chairman of the Bando Cultural Foundation, who holds a 69.61% stake.