Dunchon Jugong Reconstruction Construction Resumption Agreement Dramatically Reached

Signed the 'Dunchon Jugong Apartment Housing Reconstruction Maintenance Project Association and Construction Business Group Agreement' between Dunchon Jugong Apartment Reconstruction Association and Construction Business Group at 5 PM on the 11th; Dramatic Agreement Reached to Resume Dunchon Jugong Reconstruction Construction

[Asia Economy Reporter Park Jong-il] Gangdong-gu (Mayor Lee Soo-hee) announced on the 11th at 5 p.m. that the Dunchon Jugong Apartment Reconstruction Association and the construction business group signed the "Dunchon Jugong Apartment Housing Reconstruction Maintenance Project Association and Construction Business Group Agreement" and have begun preparations to resume construction.

This agreement is based on the Seoul Metropolitan Government's mediation plan announced on July 7, 2022, and was drafted by listening to both sides to prevent damage to association members caused by conflicts between the association and the construction business group. Both parties promised to faithfully implement the agreement in good faith.

The main contents of the agreement are as follows.

1) Regarding the construction cost (approximately 3.2 trillion KRW) in the construction contract dated June 25, 2020, a re-verification will be requested without delay, and the construction business group will actively cooperate.

2) The association will apply for price review within 60 days from the date of agreement.

3) The association will hold a general meeting to change the management disposition plan within two months from the date of receiving the price review results and proceed with the general sale process without delay.

4) Finishing materials, etc., will follow the existing contract contents, confirming that it is a contract-based method rather than a shareholding method, and any changes will be made by mutual agreement.

5) To verify the compensation amount for losses due to construction suspension and the appropriateness of increased construction costs due to design changes, verification will be requested from the Korea Real Estate Board.

6) Within 60 days from the date of agreement, a general meeting of the association will be held to approve this agreement and finalize it through the resolution of the general meeting.

7) Once the association completes all the implementation matters of the agreement, the construction business group will resume construction without delay and cooperate in securing necessary project funds for the association.

8) Within 60 days from the date of agreement, the association will resolve the cancellation of agenda items related to commercial facilities and the agreement on disputes between PM companies through a general meeting resolution.

9) The substantive effect of the agreement arises upon the resolution of the general meeting, and parts may be deleted, modified, or supplemented by mutual agreement between the two parties.

The Seoul Metropolitan Government and Gangdong-gu signed the witness confirmation of the agreement and promised to actively support the prompt resumption of construction in the future.

Lee Soo-hee, Mayor of Gangdong-gu, said, "This week, we will form the 'Dunchon Jugong Normalization Promotion TF Team' and plan to hold regular progress meetings with experts from each field," adding, "We will do our best to provide practical and concrete support."