All 785 Sites Under Korea Federation of Construction Associations Halted
LH Faces Up to 4.6 Billion KRW Daily Loss from Public Housing Construction Suspension
Construction Delays at 174 Public Housing Locations
[Asia Economy Reporter Kim Min-young] The construction industry has announced that it is considering filing damage claims to compensate for losses such as construction halts and delayed occupancy caused by the prolonged strike of the Cargo Solidarity Union. The Korea Land and Housing Corporation (LH) estimated that if public housing construction sites come to a halt due to the strike, damages could reach up to 4.6 billion KRW per day.
On the 6th, the Korea Federation of Construction Associations stated that it is reviewing the possibility of pursuing lawsuits for damages to compensate for construction stoppages caused by the Cargo Solidarity Union's collective refusal to transport cement.
According to the federation, a damage survey of member companies revealed that out of 1,349 construction sites across 115 companies nationwide, 785 sites (58.2%) have stopped work.
The federation plans to confirm whether member companies (12,510 general contractors, 46,206 specialized contractors, and 6,230 equipment contractors) will participate in the lawsuit to firmly express the construction industry's stance against the illegal strike by the Cargo Solidarity Union. Additionally, it will review the lawsuit procedures and methods through legal counsel and estimate the extent and expected scale of damages for participating companies.
Public housing construction sites are also experiencing disruptions due to unstable cement supply caused by the strike. According to LH, as of the 5th, out of 244 public housing construction sites nationwide, 174 are facing construction delays.
LH stated that if construction work is halted, it must pay construction companies for extended construction periods and indirect costs, and compensate occupants for delays.
LH explained, "Currently, there are 145,000 houses under construction nationwide. When calculating the indirect costs of extended construction periods and compensation for delayed occupancy due to construction stoppages, the estimated daily damage is approximately 4.6 billion KRW."
It also estimated that if construction is halted for a month, damages could reach about 140 billion KRW. LH said it would consider filing damage claims if occupancy delays caused by the prolonged strike occur.
LH urged the Cargo Solidarity Union to promptly return to the sites to ensure housing stability for the homeless and low-income citizens, stating, "We expect a magnanimous decision based on law, principles, coexistence, and cooperation."
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