[My Home Stories] 'Poor Construction Controversy' Geumho Richensia Prestige, Anxiety Despite Usage Approval

Suwon-si Approved Use on the 16th
Contractor Repaired but Some Defects Remain
Kumho Construction Faces Completion Delay and PF Loan Debt Assumption

The 'Kumho Richensia Prestige' in Gosaek 2 District, Suwon, whose move-in was delayed due to 'poor construction controversy,' has finally received usage approval. However, contrary to Suwon City's decision, the buyers continue to express dissatisfaction with defects daily, and the turmoil is expected to persist.

According to Suwon City on the 19th, 'Kumho Richensia Prestige Complex 1' received usage approval from the city on the 16th. This was 16 days after the scheduled move-in date (last month 31st). Usage approval is a procedure where administrative authorities grant permission before using a completed building. Kumho Richensia Prestige is an officetel supplied by Kumho Construction in Gosaek 2 District, Gwonseon-gu, Suwon City, Gyeonggi Province, consisting of 2 basement floors to 15 floors above ground, with a total of 513 units, first sold in December 2021. The initial sale price ranged from 846 million to 863 million KRW.

A view of 'Geumho Richensia Prestige' in Gosaek 2 District, Gwonseon-gu, Suwon-si, Gyeonggi-do.

This officetel did not receive usage approval by the scheduled move-in date due to poor construction issues. Buyers opposed the city's usage approval citing defects such as leakage and cracks in the underground parking lot and poor sprinkler installation. The city also pointed these out during an on-site inspection conducted last month. The preliminary inspection was not smoothly conducted due to defects.

Kumho Construction supplemented the pointed-out issues and applied for usage approval from the city on the 1st. A city official explained, "Based on the on-site confirmation, we judged there was no evidence of poor construction or major defects, so we granted usage approval." The move-in is expected to take place within three months after the construction company reschedules the move-in date.

However, even after the construction company's application for usage approval, the buyers' opposition continues. They argue that the usage approval application was made while there are still many risk factors in the complex. Some prospective residents held a head-shaving protest in front of the city hall on the 8th, demanding opposition to usage approval and enforcement of the preliminary inspection.

In response, the city explained, "Issues such as leakage and cracks are problems that can be addressed during the defect repair stage after move-in and are not decisive criteria when judging usage approval."

Meanwhile, as the move-in was delayed, Kumho Construction also faced financial issues. On the 14th, Kumho Construction took over 61.2 billion KRW of project financing (PF) loan debt from the developer, Infinity Plus. Since the developer failed to fulfill the responsibility for completion by the promised date of the 13th due to the move-in delay, Kumho Construction, as the construction company, assumed the debt.

Kumho Construction stated, "We can repay the entire assumed debt amount upon collecting the remaining payments from the units already sold."

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