[Exclusive] Eunma Apartment 'Commercial Dispute' Resolved... Reconstruction to Accelerate

The establishment of the union for the reconstruction complex representing Gangnam, Seoul, Eunma Apartment, is expected to gain momentum. With the negotiation of a business agreement with the Eunma Shopping Center side, the long-standing 'shopping center dispute' that had hindered the project progress is likely to be resolved for the time being.

Panoramic view of Eunma Apartment in Daechi-dong, Gangnam-gu, Seoul, considered a 'major reconstruction project' / Photo by Ryu Taemin

According to the Eunma Apartment Reconstruction Promotion Committee (Promotion Committee) on the 27th, the Promotion Committee finalized the negotiation of a business agreement with the Eunma Shopping Center Reconstruction Promotion Council (Shopping Center Council) on the 26th. The Promotion Committee and the Shopping Center Council held a total of three business agreement meetings since the 15th.

During the three meetings, both sides appear to have narrowed their differences and reached agreements on the disputed issues. Regarding the location of the Eunma Shopping Center, which was a representative conflict issue, the agreement was made to maintain the current location adjacent to Daechi Station in the future. The Promotion Committee stated, "After careful verification, placing the shopping center in its current location will only change the arrangement by building, and there will be no loss to the apartment side."

Consensus was also reached on the independent accounting system. The Eunma Shopping Center, consisting of about 500 stores, had consistently demanded an independent accounting system. In response, the Promotion Committee stated that through working-level consultations, the agreement on the independent accounting system was finalized, removing any obstacles. Additionally, regarding the number of directors and delegates, the shopping center side was allocated one director and nine delegates, and the shopping center union member sales ratio was agreed upon at 10%.

Although this agreement was finalized, it will only take effect after being approved at the inaugural general meeting. A Promotion Committee official said, "We plan to complete the collection of consent forms by the end of May if possible," and added, "After approval at the inaugural general meeting, we will proceed with the notarization process for the agreement."

This negotiation with the shopping center is expected to accelerate the union establishment process. The Promotion Committee initially postponed the union establishment schedule planned for June. While most apartment owners' consent was secured, the consent rate was slow due to conflicts within the shopping center. To establish the union, consent from more than 75% of apartment owners and more than 50% of the shopping center is required.

The Promotion Committee stated, "If the shopping center is excluded and the reconstruction project proceeds, it will be impossible to obtain union establishment approval until a court ruling is made, resulting in significant losses," and added, "If it leads to litigation, it could take up to 2 to 3 years, meaning Eunma would have to remain at the promotion committee stage continuously."