The construction of Dunchon Jugong Reconstruction (Olympic Park Foreon) in Gangdong-gu, Seoul was completely stopped as of 00:00 today (15th).
As the union executive department and the construction project group (Hyundai E&C, HDC Hyundai Development, Daewoo E&C, Lotte E&C), which had been in conflict over the issue of increasing construction cost, ran parallel to the 'Kangdae River', it is the first time that the reconstruction of a large complex that has already been more than half completed is stopped. It's the situation.
Dunchon Jugong is counted as the 'largest reconstruction project since Dangun' by demolishing 5,930 households and constructing the highest 35-story building, 85 buildings, and 12,32 households.
To date, the completion rate has reached 52%.
The construction team has withdrawn all personnel and equipment from the construction site.
In addition, banners stating 'Lien exercise in progress' were hung all over the construction site, and full access to the construction site was controlled.
The conflict between the union and the construction group is in the contract to increase the construction cost of about 560 billion won, which the construction group and the former union executive signed in June 2020.
The former chairman of Dunchon Jugong signed a contract with the construction team to increase the construction cost from 2.6708 trillion won to 3.2294 trillion won due to design changes, etc.
However, the executive department of the new association argues that the contract between the construction group and the previous association, such as the dismissal of the then president, cannot be accepted due to legal and procedural problems.
The construction team, on the other hand, is of the view that there is no problem with the change of the construction contract at the time as it passed the resolution of the general meeting of the association and received approval from the competent ward office.
In a statement today, the construction team said, "Since the start of the construction on February 15, 2020, we have been carrying out external construction of about 1.7 trillion won, and, apart from the construction cost, the construction team's credit grant (joint guarantee) provides about 7 loans for the project cost of the association. We are procuring 100 billion won,” he said.
The union's position is also strong.
The union plans to hold a general meeting tomorrow to deal with the issue of canceling the resolution related to the increase in the construction cost in question (the time of resolution is December 7, 2019).
Separately, on the 21st of last month, the union also filed a lawsuit with the Seoul Eastern District Court to nullify the contract to change the construction cost increase.
In particular, the union is in a state of counterattack to push ahead with the termination of the contract if the construction team's construction suspension period continues for more than 10 days.
The union held a meeting of delegates on the 13th and passed the agenda for the general meeting of the conditional contract termination with this content.
Out of a total of 120 delegates, 116 attended and 111 voted in favor.
If the suspension of construction leads to the termination of the contract, the union must immediately solve the problem of extending the loan for moving expenses and business expenses.
The amount of loans for moving expenses that the association has lent from the financial sector is about KRW 1.28 trillion.
The loan amount (700 billion won) received by the construction group as a joint guarantee expires in July.
In the end, to solve this problem, it seems that the contribution of members will have to increase.
In addition, the cooperative initially planned to sell 4,786 households to the general public within the first half of this year, but if the contract with the construction group is terminated and the situation becomes prolonged, this will also be postponed without a promise.
(Photo = Yonhap News)