Dunchon Jugong Normalization Committee Requests Suspension of Reimbursement Claims... Construction Group "Considering Temporary Financial Support"

Discussed but Concerns Remain
Jeongsangwi Not an Official Executive
Legal Ineffectiveness of Consultations Also a Variable

Photo by Moon Honam munonam@

[Asia Economy Reporter Hwang Seoyul] The Dunchon Jugong Apartment Reconstruction Emergency Countermeasures Committee, acting as the Normalization Committee, met with the construction project team to discuss concerns of the union members, such as the extension of the project loan maturity, but there was no significant progress. However, the construction team responded positively to considering alternatives such as temporary financial support.

According to the Dunchon Jugong Reconstruction Normalization Committee (Normalization Committee) on the 14th, the previous afternoon the Normalization Committee and the construction project team formed a 'Union-Construction Team Consultative Body for Resuming Construction and Preventing Union Bankruptcy' and discussed ▲ specific measures regarding the project loan maturity ▲ and the removal of tower cranes.

The Normalization Committee requested the construction team to postpone or waive measures such as 'subrogation after the project loan maturity, claims for reimbursement, and provisional seizure of union bank accounts and other assets.' Last month, the main lenders, including NH Nonghyup Bank, decided not to extend the 700 billion KRW project loan maturing in August. If the loan extension is not possible, each union member must repay about 100 million KRW, and if that is also difficult, the union will go bankrupt. The construction team, which provided joint guarantees, can repay this money to the lenders on behalf of the union (subrogation) and then claim reimbursement. The construction team stated that while claims for reimbursement are inevitable, they can consider alternatives such as refinancing. A construction team official said, "If construction resumes, the necessary project funds must be supported by the construction team to proceed without problems."

Additionally, the Normalization Committee proposed postponing the removal of tower cranes until the end of August. The construction team said they would review extending the removal postponement as much as possible.

However, despite the meeting between the Normalization Committee and the construction team, the discussions remained at the level of considering conditions based on the 'union members’ will for normalization,' which seems insufficient to completely alleviate the union members' concerns. Also, since the Normalization Committee is not the official union executive body, the legal effect of this consultative body formation may be a variable.

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