'Angry' Gwacheon Xi Members Condemn "GS Construction, Overpriced Sale... Secret Agreement on Construction Costs"

On the 9th, the reconstruction association members of Gwacheon 6 Complex held a rally in front of the GS Construction headquarters in Jongno-gu, Seoul, demanding quality construction that matches the increased construction costs.

[Asia Economy Reporter Kim Bong-gi] Last May, Gwacheon Xi (reconstruction of Gwacheon Jugong Complex 6) was sold, and after increasing the construction cost by emphasizing 'quality construction,' suspicions arose that low-cost finishing materials were used, leading the union members to stage a protest in Seoul.

The Gwacheon Complex 6 Reconstruction Union held a rally on the morning of the 9th in front of the GS Construction headquarters in Jongno-gu, Seoul, with about 100 union members attending. They claimed, "It has been revealed that GS Construction secretly shared the construction cost details with the then union president during the contract modification process," and added, "Although the construction cost was increased citing quality improvement, the construction quality is inferior to surrounding complexes."

The conflict over the reconstruction of Gwacheon Jugong Complex 6 intensified after the construction contract modification was signed last May. GS Construction, the contractor, changed the original contract citing project delays due to lawsuits and increased construction costs due to union quality investments.

However, when the model house for general sale housing was unveiled in the same month, union members repeatedly pointed out that the quality was inferior compared to the increased construction costs. According to the union, the construction cost per 3.3㎡ increased by about 23%, from 4.23 million KRW to 5.206 million KRW. However, the unclear details and calculation basis for the increase in construction costs fueled the anger of the union members. This is due to the 'Information Security Agreement' signed seven months before the contract modification, in which a GS Construction executive and the former union president agreed to keep the construction cost details confidential, and the new union executive is considering filing complaints against GS Construction and the former union executive for unjust enrichment and breach of trust, respectively.

Lee Byung-seon, president of the Gwacheon Complex 6 Reconstruction Union, expressed frustration, saying, "Although it was said that the finishing level would apply the finishing standards and systems of apartments in the Gangnam area, while the construction cost rose to 5.2 million KRW per pyeong, the finishing level is worse than that of nearby Gwacheon Jugong Complexes 1 and 2. The visible finishing materials such as kitchen furniture and windows are of significantly lower quality, so how much worse must the quality of the invisible construction be?"

In response, GS Construction stated, "The Information Security Agreement was created to prevent the leakage of trade secrets externally. The contract modification was made through the union's decision-making bodies such as the general meeting of union members, and allegations of unjust enrichment are groundless."

This content was produced with the assistance of AI translation services.