[Exclusive] "Injunction Dismissed"... Dunchon Jugong Construction Resumes After 6 Months

The Dunchon Jugong union and the construction business group have agreed on 8 out of 9 major issues. The 8 agreed clauses are ▲ re-verification of the existing construction cost increase ▲ review of the sale price ▲ general sales and union member sales ▲ design and contract changes ▲ verification ▲ general meeting resolution ▲ resumption of construction ▲ effectiveness of the agreement and responsibility in case of violation. However, since there is a disagreement regarding the commercial dispute, more time is expected before construction can resume. A view of the Dunchon Jugong reconstruction site in Gangdong-gu, Seoul, on the 7th. Photo by Moon Honam munonam@

[Asia Economy Reporter Ryu Tae-min] With the 'commercial dispute,' which was considered an obstacle to the resumption of construction, coming to a close, the resumption of the Dunchon Jugong Apartment reconstruction project is now within reach.

According to industry sources on the 14th, the 'Dunchon Jugong Apartment Integrated Commercial Committee (Integrated Commercial Committee),' the current representative body of the commercial units, had its injunction request to prohibit the submission of certain agenda items at the general meeting against the association dismissed. As a result, all agenda items can be submitted without issue at the general meeting scheduled for the 15th.

The Integrated Commercial Committee argued that the association does not have the authority to revoke approval for the establishment of the commercial association under the independent settlement system and submitted an injunction application to the Seoul Eastern District Court on the 30th of last month. The association's bylaws specify that the independent settlement system must be followed, and the Integrated Commercial Committee's position is that changing the representative body at the association's general meeting without going through the commercial members' general meeting is unacceptable.

A representative from the construction consortium stated, "If the commercial-related agenda items pass through the general meeting, the PM company will release the retention rights, allowing construction to proceed," adding, "If all processes go smoothly, a groundbreaking ceremony is planned for the 17th of this month, and construction will resume." The reconstruction association plans to hold a general meeting on the afternoon of the 15th.

Meanwhile, although the court dismissed the injunction application from the Integrated Commercial Committee and construction will resume, there are also expectations that the dispute will continue through litigation. A reconstruction association official said, "From the association's perspective, time can no longer be wasted on commercial disputes," and added, "We plan to expedite the general sales process."

The Dunchon Jugong reconstruction construction was halted at midnight on April 15th following conflicts between the association and the construction consortium. However, as the project could no longer be delayed, both parties agreed on August 11th to resume construction. The Dunchon Jugong reconstruction is called the 'largest reconstruction project since the founding of Korea,' involving the demolition of 5,930 households and the construction of 85 buildings up to 35 floors high, totaling 12,032 households.

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