Busan Yeongdo-gu Redevelopment Apartment Additional Construction Cost Conflict
Shared Cost About 17 Billion KRW... 50 Million KRW Per Household
"Unavoidable to Exercise Retention Rights" vs "Forcing Out the Elderly"
A construction company for a redevelopment apartment in Busan blocked the entrance doors of union members who were in conflict over additional construction cost sharing with metal bars.
According to the real estate industry on the 5th, IS Dongseo recently completed construction and started move-ins at 'Ocean Life Aileen's Garden' in Dongsam-dong, Yeongdo-gu, Busan. On the 3rd, they exercised a lien on 224 union member-owned households regarding the issue of additional construction cost sharing.
The construction company took blocking measures by installing two metal rods above and below the entrance doors to prevent unauthorized entry by union members. A 'Notice of Lien Exercise' stating "No unauthorized entry is allowed under any circumstances without our permission" was posted on the entrance doors.
The total additional cost sharing amount due to the construction cost increase disclosed by the construction company is about 17 billion KRW, reaching 50 million KRW per household. The construction company stated, “There is a clause in the construction contract that clearly states payment must be made by union members if additional construction costs arise.”
The construction company and the union show differing positions on who should bear the cost. The construction company said, “We exercised the lien unavoidably because negotiations with the union regarding the increase in construction costs due to rising prices were not properly conducted,” and added, “If the union takes legal action, we will respond accordingly.” They also demanded the replacement of the current union executive committee, saying there is no room for negotiation with them.
On the other hand, union members are protesting, saying the construction company’s measures are excessive. A union official claimed, "Since the Yeongdo redevelopment project has many elderly residents, many union members are seniors in their 60s and 70s who have lived in Yeongdo for a long time, and they are being pushed out onto the streets."
They continued, "Even if legal disputes proceed, move-ins should be allowed first, and the company should take responsibility for damaging the entrance walls." The union also stated their intention to dispute the unfairness of the additional construction costs and plans to engage in legal actions as well as protests and other struggles.
Meanwhile, the apartment complex consists of a total of 10 buildings with 1,228 households, and the construction company took such measures under the pretext of exercising a lien on 224 union member-owned households who are the project implementers. Exercising a lien on a building is mainly related to construction payments, and the lienholder can retain possession of the property until the entire debt is repaid.
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