General Assembly Vote Results Select 'Heerim' as Designer
Seoul City Disqualification Target Heerim's Resolution Itself Is 'Invalid'
Union Claims 'Proceeding According to Legal Procedures'
When the Seoul Metropolitan Government put a brake on the architectural design firm selected by the Apgujeong 3 District Reconstruction Association in Gangnam-gu, the association held an emergency board meeting on the 19th and decided to form a legal advisory committee to discuss response measures. The association expressed its intention to actively respond to Seoul City's policy declaring the selection of the design firm invalid. Market observers predict that delays in the Apgujeong reconstruction schedule are inevitable.
According to the Apgujeong 3 District Reconstruction Association on the 18th, the association decided to hold an emergency board meeting in the association's conference room in the afternoon with agenda items including the 'Formation of a Legal and Administrative Advisory Committee.' The association plans to form an advisory committee to conduct a legal review regarding Seoul City's stance that the selection of Heerim as the design firm through the design competition is 'invalid.'
Chairman Ahn Jung-geun notified the members on the 17th via text message, stating, "Although there have been recent media reports related to the selection of the designer, no official documents such as specific administrative orders or measures have been received yet, so we are currently trying to understand the intentions of Seoul City and Gangnam District Office," and added, "The association will provide real-time reports once the direction is decided through consultations with Seoul City and the district office, so please do not be unsettled."
Earlier, the Apgujeong 3 District Association selected the Heerim Consortium (Heerim) as the architectural design firm through a vote held on the 15th. However, Seoul City pointed out that since Apgujeong 3 District is classified as a Category 3 residential area with a maximum floor area ratio (FAR) limit of 300%, Heerim's promotion of applying a higher 360% FAR swayed the association members, rendering the selection vote invalid. Seoul City argued that submitting a disqualified firm to the general meeting for approval itself is invalid.
Seoul City insists that the design firm must be reselected through a re-competition, but it seems unlikely that the association will accept this. The association is reportedly concerned that if it unilaterally cancels Heerim's selection without justification, Heerim may file a claim for damages.
A representative of the Apgujeong 3 District Association said, "If the association cancels Heerim's selection without just cause, Heerim, which secured a contract worth approximately 30 billion KRW, may file a claim for damages," and added, "We will try to persuade Seoul City that the general meeting vote was conducted through proper procedures." Rather than canceling Heerim's selection, the association plans to first try to convince Seoul City. Considering that contracts are usually signed within one or two months after selecting a design firm, it is expected that the association will set a maximum deadline of two months to persuade Seoul City.
If the association pushes forward with the general meeting vote results despite Seoul City's recommendations, delays in the reconstruction project are inevitable. This is because Seoul City, which holds the approval authority, can again put a brake on the architectural review process. The project timeline will inevitably be pushed back. The association originally planned to apply for architectural review in mid to late next year, but it is currently uncertain whether this schedule will be followed. Moreover, if the association has decided to persuade Seoul City first rather than cancel Heerim's selection, it is expected that coordination with Seoul City will take considerable time.
Following the 3 District, other Apgujeong reconstruction associations that are in the process of announcing the selection of design firms are also closely monitoring the situation. Since 'Apgujeong Districts 2 to 5' are grouped together under a rapid integration plan, there are concerns that if the conflict between Seoul City and the Apgujeong 3 District Association prolongs, the entire Apgujeong reconstruction project could be affected.
Some speculate that in the worst case, the dispute could escalate into a lawsuit. Attorney Kim Ye-rim of the law firm Simmok said, "If the differences between Seoul City and the association are not narrowed and the conflict prolongs, it could lead to a 'lawsuit to invalidate the resolution on the selection of the design firm,' and for Apgujeong 3 District, where the project had gained momentum through the new integrated plan, project delays are inevitable."
In response, a representative of the Apgujeong 3 District Association stated, "At present, we are not considering litigation at all. We will resolve the issue amicably through discussions with Seoul City," drawing a clear line against the possibility of a lawsuit.
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