Sale Price, Name, and Union Leader Dismissal... Dunchon Jugong's 'Endless Agony'

End of Private Land Sale Price Ceiling Suspension Period in Late April
Price Gap with HUG Remains
Motion to Dismiss 'Inept Union Leader' Under Consideration
Current New Apartment Name Under Written Vote

On the 13th, demolition work for reconstruction is in full swing at Dunchon Jugong Apartment in Gangdong-gu, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Onyu Lim] The Dunchon Jugong Apartments in Dunchon-dong, Gangdong-gu, Seoul, the largest-ever reconstruction complex, is experiencing difficulties ahead of the expiration of the private land price ceiling system exemption period at the end of April. As disagreements over the general sale price between the association and the Housing and Urban Guarantee Corporation (HUG) remain unresolved, internal conflicts are recurring over various issues such as high-interest relocation loans and the complex name. Movements to dismiss the association president, centered around some association members, have even been detected.

According to the maintenance industry on the 24th, the Dunchon Jugong Apartment Reconstruction Association will hold a joint meeting on the 27th with the online cafe administrators, who act as an emergency countermeasure committee, and the construction company Hyundai Engineering & Construction. This meeting aims to find solutions to the growing conflicts between the association and its members regarding key issues, including the general sale price.

The Dunchon Jugong Association is negotiating the general sale price with HUG, but the gap between the two sides remains large. The association set the general sale price at 35.5 million KRW per 3.3㎡, while HUG proposed 29.7 million KRW. Although HUG recently announced plans to improve some of its high-price sale review criteria by reflecting brand power and complex scale when calculating the general sale price, there is still a price gap of over 5 million KRW between the association and HUG. Association members are opposing HUG’s proposed price, saying it is significantly lower than the 33.7 million KRW per 3.3㎡ price of the 'e-Pyeonhansesang Gwangjin Grand Park' in Gwangjin-gu, which was sold early last year. The individual official land price of that complex is lower than that of Dunchon Jugong.

However, the fact that only about two months remain to avoid the price ceiling system is a significant burden for the association. Voices within the association are calling for post-sale, but this is also difficult due to practical issues such as funding. Additionally, some association members are reportedly pushing for the dismissal of the association president. One member said, "If the general sale price is set unreasonably low, increasing the burden on association members, we will hold a dismissal general meeting for the association president."

There is even much debate over the name of the new apartment complex. The association previously shortlisted three candidates (Delucia, Avenue Foret, Estella) through a naming contest, but none received the support of the majority of association members. The association is currently conducting a written vote among all members. One member said, "Recent controversies, including the push to dismiss the association president, have surfaced because various internal conflicts have come to light."