[Issue] 'After 4 Years and 6 Months Since the Disaster'... Construction Resumes at Gwangju Hakdong 4 District

Final Approval Granted for Construction Start by Dong-gu District Office
Eviction and Construction Cost Disputes Resolved
Targeting Completion of 2,299 Units by 2029

On the morning of the 28th, construction workers were busily moving at the redevelopment site of Hakdong 4 District in Dong-gu, Gwangju. Photo by Min Hyunki

On the morning of January 28, at the redevelopment site of Hakdong 4 District in Dong-gu, Gwangju, a faint winter sunlight settled amid the biting cold wind, as if the site was stretching after a long slumber, breaking the silence of the past four years and six months.

The area scarred by tragedy was surrounded by high fences, but the site visible through the gaps was neatly organized. The debris from the collapsed building and the unsightly abandoned structures had all disappeared, and the vast open land looked like a giant canvas awaiting a new beginning.

At a nearby bus stop, citizens were going about their daily routines, while around the once tightly closed site gate, construction officials were busily preparing for the resumption of work.

A local shop owner near the site said, "My heart still aches when I recall that day, but we can't stay frozen forever. Now, I just hope that sturdy and safe apartments will be built here, bringing new energy to the stagnant Dong-gu commercial district."

After being marred by the worst collapse disaster in history and various corruption scandals, the Hakdong 4 District housing redevelopment and maintenance project in Gwangju is finally breaking ground.

According to Dong-gu District Office in Gwangju on this day, the district recently approved the construction commencement report submitted by the Hakdong 4 District redevelopment association. As a result, the stalled site will resume work, aiming for completion in 2029. This comes exactly four years and six months after the tragic accident on June 9, 2021, when a building under demolition collapsed onto a city bus.

The journey to this point has truly been a 'thorny path.' During this time, Hakdong 4 District starkly revealed how enormous the social costs of safety neglect can be and exposed the raw realities of redevelopment sites entangled in conflicting interests.

The biggest obstacle was undoubtedly the aftermath of the 'collapse disaster.' The accident, which resulted in 17 casualties, did more than just halt construction; it was so impactful that it changed the paradigm of redevelopment projects in Korea. Immediately after the accident, intense investigations by the police and prosecutors were launched, followed by administrative sanctions from the Ministry of Land, Infrastructure and Transport and the local district office, making it impossible to physically resume construction.

With safety standards significantly tightened, even the process of demolishing the remaining buildings became more complicated. It took several months just to rewrite the demolition plan, undergo expert reviews, and receive approval. Erasing the stigma of a 'dangerous site' and restoring trust itself required enormous time and expense.

Before the shock of the disaster had even subsided, another major obstacle arose: the 'relocation refusal' of commercial and religious facilities within the district. In particular, shops and some churches located in the heart of the project area engaged in a tense standoff with the association over compensation amounts.

The association filed for eviction lawsuits in court to secure the authority for compulsory execution, but the legal process was slow. Numerous hearings took place before a first-instance verdict was reached, and appeals were anticipated, indicating a prolonged conflict. Ultimately, it was only in the second half of last year, after court mediation and the announcement of compulsory execution, that actual relocation and demolition were completed. This process alone took nearly two years, causing the project's financial interest burden to snowball.

The final hurdle was the 'construction cost dispute' between the contractor, HDC Hyundai Development Company, and the association. Once demolition was complete, the empty lot faced the practical challenge of increased construction costs.

Immediately after the disaster, HDC Hyundai Development Company offered the association members almost 'no margin' terms to avoid losing the construction contract, promising to use the highest-quality finishing materials and build a premium complex without making a profit.

However, the surge in raw material prices due to the Russia-Ukraine war and the prolonged high-interest environment over the past several years completely changed the situation. HDC Hyundai Development Company stated, "If we do not reflect the increase in costs, construction itself is impossible," and requested that the original construction cost, which was slightly over 5 million won per 3.3 square meters, be raised to the high 6 million won range.

The association members immediately objected. The emergency committee accused the contractor of "breaking the promises made at the time of the disaster," even raising the possibility of replacing the contractor. Negotiations between the two sides remained deadlocked for over ten months. The talks, which nearly collapsed, were finally resolved dramatically in July last year, with the construction cost set at approximately 6,198,000 won per 3.3 square meters. This compromise was reached by slightly adjusting the specifications of finishing materials and moderating the price increase.

Having overcome these three major hurdles, Hakdong 4 District is now ready to be transformed into a large complex with 19 buildings, ranging from three basement levels to 29 above-ground floors, and a total of 2,299 units. While the name 'Gwangju Mudeungsan I-Park Phase 2' is a strong candidate, there is also a possibility that a new pet name will be introduced to erase the traces of the disaster and refresh the image.

A real estate industry official near the site commented, "Hakdong 4 District has enough potential to become a landmark of Gwangju, thanks to its view of Mudeungsan and convenient transportation," but added, "Because of its history as a disaster site, the verification of construction safety will be more rigorous here than anywhere else."

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