Internal Conflict Intensifies in Dunchon Jugong Reconstruction... Key Union Executive Resigns

Union Rejecting Seoul City's Mediation Proposal... Conflict Intensifies Amid Member Backlash
Despite Legal Advisory Committee Resignation, "Will Exert Influence Behind the Scenes"
Construction Company Discussing Restart with Normalization Committee Instead of Current Union

View of the Dunchon Jugong reconstruction site in Gangdong-gu, Seoul. / Photo by Moon Honam munonam@

[Asia Economy Reporter Ryu Tae-min] The internal conflict within the Dunchon Jugong Reconstruction Association appears to be intensifying. As members strongly opposed the association's outright rejection of the Seoul City mediation proposal, a key executive of the association ultimately announced their resignation. Meanwhile, the construction business group is expected to form a consultative body with the ‘Dunchon Jugong Association Normalization Committee (Normalization Committee)’ instead of the current association to discuss matters related to the resumption of construction.

According to industry sources on the 12th, Kang Jeong-won, an advisory committee member of the Dunchon Jugong Reconstruction Association (Head of Contract Law TF Team), announced his resignation from the committee on the 9th. Kang stated, "Many association members no longer wish for me to serve as an advisory committee member," adding, "I believe it is only natural to follow that wish, so I am resigning from the advisory committee." Kang had been serving as an advisory committee member in the capacity of a family member of an association member, not as a reconstruction association member himself.

This development is seen as a consequence of the internal conflict worsening after the association announced on the 7th that it had failed to reach an agreement regarding Seoul City's mediation proposal. On the day before Kang’s resignation, the 8th, Kim Hyun-chul, the association head, and the association leadership held a live Q&A session on YouTube regarding the mediation proposal. However, during this session, association members strongly opposed, saying, "None of the issues faced by members, such as subrogation, have been resolved," deepening the rift.

Despite Kang’s resignation, the construction business group and the Normalization Committee, which functions as an emergency countermeasure committee, responded coldly. A Normalization Committee official said, "Although the advisory committee member resigned, Kim Hyun-chul, the association head, and other leaders remain, so the situation has not changed," adding, "On the surface, Kang resigned from the advisory committee, but we expect him to continue to exert substantial influence over the association leadership’s decision-making." He also noted, "It is true that there had been many complaints from members about the advisory committee member speaking on behalf of the association head and drafting official documents."

Construction Company to Discuss Resumption with Normalization Committee Instead of Current Association

The Normalization Committee plans to form a ‘member consultative body’ with the construction business group on the afternoon of the 13th to discuss the resumption of construction and extension of project financing. The Normalization Committee stated, "The association has completely denied Seoul City’s interim announcement and continues to repeat demands regarding design changes and commercial facilities, showing no progress in negotiations," adding, "With the project loan maturity approaching, we cannot afford any further delays."

Although the construction business group and the Normalization Committee had planned to form a consultative body earlier, they postponed it while awaiting the results of Seoul City’s mediation efforts. However, after the current association rejected Seoul City’s mediation proposal, they concluded that no negotiations could proceed and resumed forming the consultative body. On the 7th, Seoul City announced, "The association and construction business group have agreed on 8 out of 9 major contentious issues," but the association reversed its position, stating, "This is not true," reigniting the conflict.