All 22 Business-Related Proposals Approved... Park Seunghwan New Union Chief
On the afternoon of the 15th, a temporary general meeting of the Dunchon Jugong Apartment Housing Reconstruction Maintenance Project Association is taking place at the playground of Dongbuk High School in Gangdong-gu, Seoul. Photo by Noh Kyung-jo
[Asia Economy Reporters Kyungjo Noh, Seoyul Hwang] The reconstruction project of Dunchon Jugong Apartment in Gangdong-gu, Seoul, dubbed the "largest since Dangun," has resumed. This comes six months after construction was halted due to conflicts between the association and the construction consortium (Hyundai Engineering & Construction, HDC Hyundai Development Company, Daewoo Engineering & Construction, Lotte Engineering & Construction).
On the 15th, from 1 p.m., the association held an extraordinary general meeting at the Dongbuk High School sports field, where the first agenda item, the "Approval of the Construction Resumption Agreement," was passed. Out of 6,150 total association members, 5,738 attended (93 on-site, 5,645 by proxy), constituting a quorum. Among them, 5,466 voted in favor and 180 opposed, approving the original proposal.
The meeting was convened to address agenda items for normalizing the project and to elect currently vacant association executives. The meeting proceeded as scheduled after the court dismissed the injunction request filed by the Dunchon Jugong Integrated Commercial Committee against the association to prohibit the submission of some agenda items at the previous day.
A total of 23 agenda items were presented, with 22 related to the project, including ▲approval of the construction resumption agreement ▲execution of a revised construction contract ▲approval and cancellation of the integrated commercial committee’s authorization and duties ▲approval of the agreement between the association and the commercial reconstruction management company (PM) ▲changes to reserved land ▲and amendments to the maintenance project budget. The remaining item was the election of association executives (chairman, auditor, directors), with lawyer Seunghwan Park elected as the new chairman through voting.
Following the general meeting results, the construction consortium plans to hold a re-commencement ceremony at 10 a.m. on the 17th and resume construction. The expected completion date is December 2024. The association aims to hold a management disposition general meeting in December this year and apply for price review with Gangdong-gu district office, targeting general sales in January next year. Since Dunchon Jugong is subject to the pre-sale price ceiling system, the price review will be conducted by the local government’s price review committee rather than the Korea Housing & Urban Guarantee Corporation (HUG).
The Dunchon Jugong reconstruction project involves demolishing the existing 5,930 households and constructing 85 buildings up to 35 floors above ground, totaling 12,032 households. Construction was halted from midnight on April 15 due to conflicts over increased construction costs between the association and the construction consortium. Since then, both parties reconciled their differences in August and agreed on a plan to resume construction. Last month, the consortium requested the association to approve a revised contract amounting to 4,367,756,810,000 KRW (excluding VAT). The association has requested verification from the Korea Real Estate Board.
New chairman Seunghwan Park stated, "The Korea Real Estate Board’s verification results are expected in December," adding, "We will complete the procedures for general sales within this year without further conflicts with the construction consortium and make Dunchon Jugong the most livable reconstruction complex in South Korea."
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