Hyundai Construction Refunds 1.6 Billion KRW for Local Housing Association Project Costs... "First Major Company"

'Hillstate Nokyang Station' Local Housing Association Dissolution Meeting Refunds 1.6 Billion KRW to Members

[Asia Economy Reporter Kim Yuri] Hyundai Engineering & Construction announced on the 10th that it will refund 1.6 billion KRW to the members through the dissolution general meeting of the 'Hillstate Nokyang Station' local housing cooperative scheduled for the end of this month.

Unlike contract projects or reconstruction and redevelopment projects, only 5-10% of local housing cooperative projects are completed as originally planned from member recruitment to move-in. Among these, it is common for members to pay additional contributions beyond the initially estimated project costs due to increased expenses such as land and construction costs incurred during the project progress at the time of move-in.

The Hillstate Nokyang Station local housing cooperative reduced risks by securing land and confirming permits simultaneously with project promotion, and recruited members after selecting Hyundai Engineering & Construction as the contractor.

Hyundai Engineering & Construction stated, "Based on our project management capabilities, we started construction within one year after beginning member recruitment in June 2015 and completed move-in in November 2018," adding, "Continuous communication and collaboration between Hyundai Engineering & Construction and the cooperative helped reduce project costs, resulting in the decision to refund the remaining project funds of 1.6 billion KRW to the Hillstate Nokyang Station local housing cooperative through this dissolution general meeting."

The local housing cooperative said, "Compared to general sale housing projects, local housing cooperatives often face collective complaints from members due to delays in land acquisition, prolonged permit periods, and delays in member recruitment," and added, "To create a successful project, we selected Hyundai Engineering & Construction as the contractor, which increased member satisfaction and enabled the project to proceed successfully."

The Hillstate Nokyang Station local housing cooperative is a complex of 758 households built by purchasing approximately 33,000㎡ of leftover land (land for financing urban development project costs) within the Nokyang Station area urban development project zone, which is being developed as a landmark complex in the northern Gyeonggi living area. It is a double-station area project located within a 5-minute distance from both Nokyang Station and Ganeung Station.

At the initial recruitment stage, the project was highly preferred by consumers due to its affordable price of around 8 million KRW per 3.3㎡, differentiated complex design including cultural facilities, and efficient space utilization with a 4-bay structure. Currently, the complex is priced at around 11.7 million KRW per 3.3㎡ (as of February 28, based on KB market price for exclusive 84㎡ units).

A Hyundai Engineering & Construction official said, "We plan to continue managing project costs in other local housing cooperative projects to produce good results."

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