Press Conference of the Minister of Land, Infrastructure and Transport
Minister of Land, Infrastructure and Transport Won Hee-ryong is speaking about the Ministry's policy direction at a press briefing held at a restaurant in Eojin-dong, Sejong City on the 23rd. Won Hee-ryong, Minister of Land, Infrastructure and Transport, stated regarding the Dunchon Jugong reconstruction project in Gangdong-gu, Seoul, which is currently facing a construction halt, that "the primary responsibility to resolve the situation lies with the parties involved."
At his first press briefing since taking office on the 23rd at a restaurant in Eojin-dong, Sejong City, Minister Won responded to a question about the possibility of government intervention in the Dunchon Jugong situation by saying, "We cannot set a precedent where the Ministry of Land steps in whenever things get noisy."
However, he acknowledged, "It is true that Dunchon Jugong involves 12,000 households and accounts for a significant portion of next year's supply," adding, "I hope the situation is resolved amicably as soon as possible and that it becomes a starting point for smooth progress in other regional redevelopment projects."
According to the redevelopment industry, the Ministry of Land, Seoul City, and Gangdong District Office will conduct a joint inspection of the overall operational status of the Dunchon Jugong reconstruction association from today until July 3.
Minister Won said, "We will conduct a joint inspection by early June to determine whether the issue lies with the association or the construction company," but added, "It is unlikely to be a problem caused by only one party." He continued, "Once the investigation is complete, we will make decisions on ways to resolve the situation without sending the wrong signals to the market."
At the same time, Minister Won made it clear that the responsibility to resolve the situation lies with both the association and the construction company. He said, "The primary responsibility to resolve this situation lies with the parties involved," and "the next responsibility lies with Seoul City."
He also added, "If problems have arisen due to central government-level systems, or if such systems can be utilized to facilitate resolution, we will not hesitate to provide such measures and support."
The Dunchon Jugong reconstruction site has been halted since the 15th of last month due to conflicts between the association and the construction group. The cause is a difference in stance regarding the increase in construction costs, but the dispute has escalated into an emotional confrontation over whether to recognize the cost increase contract made between the former association head and the construction group.
The situation facing the association and the construction group is not favorable. The construction group plans to remove all construction heavy equipment, including tower cranes, by July, raising concerns that the construction halt may be prolonged. In particular, the loan maturity of 700 billion won for the project is due on August 24, and if no agreement is reached by then, extending the loan maturity will be difficult. Each association member must repay more than 100 million won in project costs, and if they fail to do so, the lending consortium (a group of lending financial institutions) may demand subrogation payment from the construction group, which in turn may claim indemnity from the association, potentially worsening the situation uncontrollably.
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