Serious Internal Conflict Ahead of Reappointment of Hannam 2 District Union Head... "What About the Main Construction Contract in August?"

Executive Election Scheduled for the 20th
Some Union Members File Criminal Complaint Against Union Head
Dispute Intensifies with About 3 Months Left Before Construction Main Contract

The redevelopment project of Hannam 2 District in Yongsan-gu, Seoul, which completed the selection of the construction company at the end of last year and is preparing for full-scale development, is suffering from internal strife. Ahead of the executive elections, including the scheduled reapproval procedure for the union president on the 20th, some union members have raised various suspicions against the union president and the union executive team, even resorting to legal action. Some experts express concern over the fragmented situation among Hannam 2 District union members and also worry about potential project delays.

According to Hannam 2 District union members and the maintenance industry on the 7th, various allegations and lawsuits against the current union president seeking reappointment have been continuously emerging.

First, on the 3rd, three Hannam 2 District redevelopment union members filed a complaint against the union president at the Yongsan Police Station on charges of violating the "Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions" (Urban Maintenance Act). The allegations claim that the union president falsely recorded the minutes of the board meetings regarding the 'selection and contract signing of the construction company proxy agency' held in June last year and the 'payment of service fees to partner companies' in November on the Seoul city maintenance project information disclosure site, "Jeongbi Saeop Jeongbo Mongttang."

Members of the Hannam New Town District 2 union are holding a protest in front of Yongsan District Office on the 3rd, demanding active administrative measures against the union's executive committee. Photo by Cha Wanyong

The complainants stated, "The minutes posted on Jeongbi Saeop Jeongbo Mongttang contained different content from what was resolved at the board meeting, and although some directors were absent from the board meeting, the posted minutes recorded that 'all members attended on-site' and approved the agenda." They added, "When this issue arose among union members, the content was deleted." They further pointed out, "Such actions violate Article 124, Paragraph 1, and Article 138, Item 7 of the Urban Maintenance Act."

Earlier, in December last year, 100 Hannam 2 District union members filed a lawsuit against the Hannam 2 Redevelopment Promotion District Housing Development Maintenance Project Union and its president, seeking confirmation of the non-existence of the status of the sales agency. Based on the audit results of the construction company selection proxy agency process, they raised issues such as ▲ inappropriate method of agency selection ▲ excessive bidding price guidelines ▲ lack of transparency in the bid opening process ▲ procedural flaws in contract signing ▲ and deficiencies in contract content.

Additionally, some union members have filed a lawsuit seeking confirmation of the non-existence of union member status, arguing that "the union president cannot be recognized as a union member or have an independent sales right because they received real estate ownership transfer after the union establishment approval."

In response, the union president and the executive team denied all allegations, stating, "None of the raised suspicions are true," and added, "Some opposing union members are engaging in smear campaigns ahead of the election."

Separately, about 40 union members staged a protest in front of Yongsan District Office on the same day, resorting to direct action. They claimed that the district office did not take proactive administrative measures regarding local maintenance projects, causing problems in the progress of the Hannam 2 District project.

Meanwhile, regardless of the lawsuit outcome, the ongoing controversies surrounding the union president and the executive team are significantly burdening the progress of the Hannam 2 District redevelopment project. The construction company (Daewoo Construction) selected last November must sign the main contract by August, but the current divided state of the union poses serious problems. In the worst case, the construction company contract could be canceled due to union member opposition, which would inevitably cause considerable delays in the project.

The atmosphere is also tense. Some union members have expressed dissatisfaction as the design changes proposed by Daewoo Construction to relax the 118m height restriction, suggested during the construction company selection, have been delayed. Moreover, with Seoul City planning to announce a plan to ease height restrictions in the Namsan height district and other Seoul height districts within the first half of the year, there is a growing expectation that the height restriction in the Hannam Redevelopment Promotion District will not be lifted, further intensifying the controversy.

An industry insider said, "The biggest issue in the Hannam 2 District redevelopment project is whether the height restriction will be eased, but the union has not taken any effective measures," adding, "At times like this, the union executive team should take the lead and coordinate among the construction company, union members, and administrative agencies, but since they are fighting internally, it is a regrettable situation."

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