Delayed Move-in and Unpaid Wages ... "Gyeongnam Development Corporation, Prepare Measures for Hyeondong Namyang Huhton"

Prospective residents of the public rental housing complex Hyeondong Namyang Hutton in Masanhappo-gu, Changwon, Gyeongnam, who are facing a third delay in moving in, along with construction workers who have not received their wages, have taken to the streets.

The Hyeondong Namyang Hutton Prospective Residents Council, the subcontractors’ creditors group, and the labor union held a rally on the sidewalk next to the project developer Gyeongnam Development Corporation on the 10th, urging for measures to address the damages.

A rally was held to urge the resolution of delayed move-ins and unpaid construction fees at the public apartment complex Hyundong Namyang Hut in Changwon, Gyeongnam.
Photo by Lee Seryung

The representative of the prospective residents said, “While waiting to move in, I had to leave my belongings at a moving company and my family of four is living in a 7-pyeong studio. We have extended the studio contract every time the move-in was delayed over the past three years since applying for the apartment, but how can it be that even this year, moving in is not guaranteed?”

Representatives of companies in the creditors group stated, “We signed a contract with Namyang Construction and were told that Gyeongnam Development Corporation would pay the construction contract fees directly, but we have not received them. We haven’t been paid for April and May, and we are in a situation where we can only feel guilty towards our workers.”

The labor union explained, “Currently, a total of 10 billion won is tied up, including construction costs, equipment fees, and other installation costs, as well as labor costs. If the creditors do not get paid, the workers will not receive their wages and the prospective residents will not be able to move in.”

Representatives of prospective residents of Hyundong Namyang Hutten Apartments in Changwon, Gyeongnam, are making statements urging measures to address the delay in move-in.
[Photo by Lee Seryung]

Hyeondong Namyang Hutton Apartment is a public apartment complex with over 1,100 units, constructed by Namyang Construction, a mid-sized construction company in the Gwangju and Jeonnam region established in 1958.

As of last year, the company ranked 127th in construction capability evaluation, but recently faced financial difficulties and requested corporate rehabilitation from the court.

Namyang Construction had previously filed for court receivership in April 2010 and completed the rehabilitation process in August 2016, but due to renewed financial troubles, it applied for court receivership again after eight years of normalized management.

The move-in, originally scheduled for last February, was postponed once to May and again to August. Recently, the court ordered the freezing of Namyang Construction’s assets, shattering residents’ hopes of moving in before Chuseok.

The anxiety among residents has grown even further after the development corporation, judging that moving in within this year is uncertain, sent out official letters on June 26 to prospective residents by mail, notifying them of the three-party move-in delay and contract cancellation procedures.

The delegation urging measures for Hyundong Namyang Hutton in Changwon, Gyeongnam, is demanding solutions from officials of Gyeongnam Development Corporation regarding delays in occupancy and unpaid payments.
Photo by Lee Seryeong

So far, the remaining construction costs for the Namyang Hutton project are estimated to reach 48 billion won, including 16 billion won in unpaid construction fees.

The three joint contractors, composed of local construction companies, and the project developer Gyeongnam Development Corporation are negotiating the payment of the remaining construction costs and the continuation of the project, but no alternative has been reached yet.

The representative of the prospective residents appealed, “We ask the governor, the mayor of Changwon, the president of the development corporation, and city and provincial council members to listen to our voices. Please help us so that by next Lunar New Year, we can dream new dreams in a new home.”

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