Hyundai Development Company Finalizes Residential Support Agreement for Gwangju Hwajeong I-Park Collapse Accident

Choi Ik-hoon, CEO of HDC Hyundai Development Company (left), and Lee Seung-yeop, representative of Hwajeong I-Park prospective residents, are posing for a commemorative photo after signing a performance agreement on the 18th at the National Assembly Members' Office Building in Yeouido, Seoul. (Photo by HDC Hyundai Development Company)

[Asia Economy Reporter Ryu Tae-min] HDC Hyundai Development Company has reached a final agreement with the prospective residents of the Gwangju Hwajeong-dong I-Park apartment complex regarding additional support measures following the collapse accident. By promising to expand compensation for delayed move-in to include both the deposit and interim payments, concerns among the prospective residents are expected to be alleviated.

On the morning of the 18th, at the National Assembly in Yeouido, Seoul, a "Gwangju Hwajeong-dong I-Park Residential Support Plan and Successful Rebuilding Agreement Ceremony" was held, attended by Choi Ik-hoon, CEO of HDC Hyundai Development, and Lee Seung-yeop, representative of the prospective I-Park residents.

In this agreement, HDC Hyundai Development largely accepted the demands of the prospective residents' council. According to the agreement, the key issue of compensation for delayed move-in, which HDC Hyundai Development initially proposed only for the deposit (10%) amounting to 18 million KRW, will be expanded to 91 million KRW, including both the deposit and interim payments (40%). This is based on a 60-month construction delay.

Additionally, HDC Hyundai Development agreed to waive interest on the interim payments subject to subrogation and to provide 110 million KRW as interest-free residential support funds until move-in. The residential support fund corresponds to 20% of the sale price, based on a 35-pyeong apartment with a sale price of 550 million KRW.

The additional measures will be provided equally to households that had previously applied for the existing residential support plan and those that had not. Furthermore, if move-in is delayed beyond the scheduled date of December 2027, further measures will be prepared, and consultations will continue until move-in.

Lee Seung-yeop, representative of the prospective residents' council, stated, "It is fortunate that the major issue of compensation for delayed move-in was resolved as the council desired. Although it will not be easy, this agreement allows us to endure the 61-month delay, and the prospective residents are satisfied with the outcome." Choi Ik-hoon, CEO of HDC Hyundai Development, said, "We will do our best to faithfully implement the agreement that reflects the valuable opinions of the Hwajeong I-Park prospective residents and proceed with the rebuilding with a strong determination to take responsibility."

The Gwangju Hwajeong I-Park collapsed on January 11 during concrete pouring at the new construction site, causing the internal structures and parts of the exterior walls of 16 floors to collapse simultaneously, resulting in the deaths of six workers. HDC Hyundai Development accepted the demands of the prospective residents concerned about safety and began full demolition followed by reconstruction work.

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