Resumption of Construction in 'Daejo 1 District'... Hyundai Construction Requests "Executive Team Formation by End of May"

As Lawsuits Mount Over Daejo 1 District Executive Dismissal
Reinstatement Notified with Condition of 'Proper Executive Formation'

Hyundai Construction has decided to resume construction as early as May at Daejo 1 District, where construction had been halted since January due to unpaid construction costs. However, they added the condition that construction will proceed only on the premise of forming a 'legitimate union executive body.'

According to industry sources on the 14th, Hyundai Construction sent an official letter to the Daejo 1 District union stating that if the executive body is formed by the end of May, construction will commence the following day.

Hyundai Construction initially planned to negotiate construction costs and other matters after the union was normalized and union executives were elected. However, as internal conflicts within the union continued even after the construction halt, they judged that it would take more than a year to reach an agreement on the conditions for resuming construction, leading to a bold decision.

In the official letter, Hyundai Construction stated, "To unite union members and related organizations in forming the union executive body, which is the top priority condition, we have decided to immediately resume construction upon the election of the union executive body."

Daejo 1 District is a project to build 28 buildings with a total of 2,451 households on an 112,000㎡ site in Daejo-dong, Eunpyeong-gu, Seoul. The total construction cost is 580 billion KRW, but Hyundai Construction has not received 180 billion KRW of the construction fees. Hyundai Construction completely halted construction as of January 1.

Seoul City and Eunpyeong-gu also requested a positive review of resuming construction, as prolonged construction suspension would increase damages to union members and the contractor, as well as sharply raise financial costs.

Hyundai Construction plans to start preparations for resuming construction from next week. Since construction has been halted for more than two months, they need to organize the worksite, conduct safety inspections, and it will take more than two months to recruit subcontractors and on-site workers.

Even after Hyundai Construction halted construction in early January, normalization of the Daejo 1 District union executive body remains distant. In mid-January, the court appointed an acting officer, but the appointment was canceled the following month. On the 15th of last month, union members held an extraordinary general meeting to dismiss the union head and executive body, passing the dismissal agenda, leaving the executive body vacant again.

An official from Eunpyeong-gu Office explained, "Since the executive body members were dismissed, we have applied to the court to appoint a temporary union head and are awaiting the result."

Initially, Hyundai Construction expected that construction could resume 3 to 4 months after the halt, but due to successive lawsuits, the resumption has been repeatedly delayed. The sales schedule is also difficult to predict.

An industry insider explained, "The longer the construction halt lasts, the higher the interest costs and the union members' contributions increase. Abandoning the project midway after being entrusted with construction inevitably causes significant damage to the construction company's image."

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