[Exclusive] Dunchon Jugong Construction Halt Crisis... Construction Consortium "If General Sale Schedule Not Confirmed After July General Meeting, Construction Will Stop"

[Asia Economy Reporter Donghyun Choi] The Dunchon Jugong Apartments in Dunchon-dong, Gangdong-gu, Seoul, considered the largest reconstruction project since the era of Dangun, is facing its greatest crisis with the suspension of construction. Amid deepening conflicts among union members over whether to proceed with pre-sale or post-sale, the Dunchon Jugong project team declared that if the general sale schedule is not finalized at the general meeting to be held on July 9, construction will be halted.

According to the maintenance industry on the 24th, the Dunchon Jugong construction consortium, consisting of Hyundai Engineering & Construction, HDC Hyundai Development Company, Daewoo Engineering & Construction, and Lotte Engineering & Construction, stated in an official letter sent to the Dunchon Jugong union, "If the general sale schedule is not finalized based on the results of the July 9 general meeting, we will have no choice but to suspend construction." The Dunchon Jugong union plans to hold an extraordinary general meeting of union members on the 9th of next month to decide whether to accept the sale price according to the Housing & Urban Guarantee Corporation (HUG)'s high-priced project review standards. If the agenda to accept the sale price proposed by HUG and proceed with the sale schedule is not passed at this meeting, construction will be stopped.

The construction consortium cited the increase in costs due to delays in the start of construction as the reason for considering suspension. They stated that if costs inevitably increase due to unavoidable circumstances, renegotiation will be necessary. The consortium said, "If the general sale schedule is not finalized, the actual start date and completion date must be renegotiated according to changes in preconditions," adding, "The longer the general sale schedule is delayed, the exponentially greater the financial costs borne by union members will be, including project delay financing costs and financing costs for pre-invested construction expenses."

Additionally, the consortium expressed concern, stating, "If construction is suspended, the period will last until the general sale schedule, measures for pre-invested construction costs, and the union's construction cost procurement plan are finalized," and warned, "All legal and financial responsibilities arising from this will rest entirely with the union and its members."

In response, the Dunchon Jugong union appealed to its members to unite in favor of pre-sale, emphasizing that "construction suspension must be avoided." A union official said, "Even in the worst case, construction suspension must be avoided," and added, "The executive team will renegotiate with the project team, but the decision and support of the union members are also necessary."

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