Elementary School Scheduled to Open in March Delayed to May
Move-in for Knowledge Industry Center Also Postponed to Late May
Apartment Construction Delays Cause Move-in Postponements
Myeongmun Elementary School, located in Myeongji New Town, Gangseo-gu, Busan, was scheduled to be completed in March this year, but due to the extended construction period caused by factors such as ready-mixed concrete truck drivers and the Cargo Solidarity strike, the completion date was postponed to the 15th of this month. As the completion was delayed beyond the planned schedule, the Busan Metropolitan Office of Education prepared a temporary school building at Ullimmaru, about 2 km away. Kim, a student who enrolled in this school in March, could have walked to school if the school had opened as planned, but until May, she has to take a school bus for more than 30 minutes to commute.
Due to rising construction material costs, interest rate hikes, and the impact of strikes, construction sites nationwide are experiencing consecutive work stoppages and delays in groundbreaking. Not only schools but also knowledge industry centers and other sites across the country are unable to meet their completion dates due to construction delays, causing damages to residents and students.
According to the industry on the 8th, Gasan Mobius Tower sent notices to contractors in February regarding delays in move-in. The Mobius Tower side stated, "Due to unavoidable reasons such as rising building material costs, consecutive Cargo Solidarity and ready-mixed concrete strikes, heavy rain, and suspension of operations caused by flooding of building material and factory suppliers, construction delays have occurred," and they expect the designated move-in date to be from late May to early June. They further explained, "Rather than forcing construction to meet the scheduled move-in date, we have inevitably announced the delay to build a safer and higher-quality knowledge center."
Gasan Mobius Tower, sold by Fides Development, is planned to be built in the G-Valley of Seoul Digital Industrial Complex, with approximately 43,400㎡ of total floor area spanning from 4 basement floors to 20 above-ground floors.
Delays in apartment construction causing postponed move-in dates have already become a nationwide phenomenon. Hyundai Construction notified in February that the move-in period for ‘Hillstate Songdo The Sky’ apartments in Songdo-dong, Yeonsu-gu, Incheon, would be adjusted from February next year to May, and the private rental apartment ‘KTX Osong Station Daekwang Roseviang’ in Heungdeok-gu, Cheongju, Chungbuk, also announced a postponement of the move-in date from March to June.
The nationwide move-in delay situation is a result of rising raw material costs due to the prolonged Ukraine-Russia war and supply disruptions caused by consecutive strikes. As cases of delayed move-in due to extended construction periods increase, issues regarding compensation for delayed move-in are also emerging. If the responsibility for the delay lies with the construction company, the company must pay delay compensation to the buyers. From the construction companies’ perspective, there is growing concern that the soaring construction costs combined with delay compensation will worsen profitability.
A representative from construction company A said, "The move-in delay situation is due to factors such as material cost increases and strikes caused by the Ukraine war, which construction companies cannot resolve," and added, "Construction companies are also making efforts to manage the situation as delays increase burdens such as worsening profitability."
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