DL E&C Granted Injunction Suspending Termination of Sangdaewon District 2 Contract

Bird's-eye view of Sangdaewon District 2. Seongnam City Hall

The court has granted DL E&C's provisional injunction to suspend the effect of the notice of termination of the construction contract issued to the Sangdaewon District 2 Redevelopment Association in Seongnam, Gyeonggi Province.

On April 29, DL E&C announced, "With the approval of our provisional injunction application, our position as the construction contractor has been temporarily restored." The company added, "We plan to take further legal action, including seeking confirmation of our contractor status, regarding the association’s decision to terminate the construction contract."

Sangdaewon District 2 is a redevelopment project to build a large-scale apartment complex consisting of 43 buildings with up to 29 floors and a total of 4,885 housing units at 3910 Sangdaewon-dong and its surrounding area.

DL E&C won the project in 2015 and signed the construction contract with the association in 2021. Subsequently, disagreements arose between DL E&C and the association over increased construction costs due to rising raw material prices. Tensions escalated further when the association requested that DL E&C apply its high-end brand 'Acro' to the redevelopment site, but DL E&C expressed reluctance to comply.

Last month, the association held a general meeting of representatives and passed an agenda to designate GS Engineering & Construction as the preferred negotiation partner, thereby pushing for a change of contractor. In response, DL E&C filed a provisional injunction with the court, claiming the procedure was illegal and requesting to suspend the effect of the resolution.

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