Scheduled for demolition procedures next month
Relocation rate reaches 99% just over one year after relocation began
The Eunpyeong-gu Galhyeon 1 District Housing Redevelopment Project, the largest redevelopment complex in the northwest area of Seoul with a total project cost of 1 trillion KRW, is gaining momentum. As the resident relocation process nears completion, the next phase of demolition work has begun in earnest.
According to Lotte Construction and the maintenance industry on the 27th, the Galhyeon 1 District Redevelopment Association submitted the building demolition plan to the Eunpyeong-gu Office on the 25th. A review date is scheduled for next month, and unless there are any special issues, the demolition procedures are expected to proceed immediately. This marks 12 years since the area was designated as a maintenance zone in 2011 and 4 years and 9 months since the project implementation approval in January 2019.
The redevelopment association of Galhyeon 1 District submitted the building demolition plan to Eunpyeong District Office on the 25th and is scheduled to begin the full-scale demolition process next month. [Photo by Cha Wanyong]
After being designated as a maintenance zone in 2011, the establishment of the association was delayed due to a downturn in the real estate market, but progress accelerated after the project implementation approval in 2019. The management disposition approval was obtained in 2022, and relocation began the same year, achieving a 99% resident relocation rate in just over a year.
Currently, out of approximately 4,000 households based on residents, only about 40 households remain unrelocated. With the commencement of eviction enforcement ordered, relocation is expected to be completed by next month. The association and the construction company plan to expedite demolition as much as possible, aiming to start construction by the end of next year and begin sales in 2025.
Of course, there are still challenges to resolve. First is the issue of distrust among some association members toward the association's executive team. Some members have taken legal action, including filing complaints against the association head over procedural violations such as the issuance of service contracts. However, a recent court ruling upheld the position of the association head. In response, some members have initiated a dismissal general meeting to remove the entire executive team, including the association head.
As with other maintenance projects, there are also issues regarding the replacement of the construction company. However, most members are concerned about increased project costs and construction delays due to a change in the construction company, so the likelihood of a replacement becoming a reality is considered low.
In fact, complexes such as Jamsil Miseong Clover Apartments and Yongsan-gu Hannam 2 District have recently experienced conflicts over increased project costs and delays, leading to general meetings to terminate construction companies, but ultimately re-selection cases have continued.
Additionally, some members of Galhyeon 1 District have expressed dissatisfaction that the Korea Housing & Urban Guarantee Corporation (HUG) did not approve the project cost loan guarantee, resulting in higher interest rates. However, Lotte Construction has denied this claim. They explained that relocation funds have already been procured through HUG guarantees and relocation is currently complete, and that project cost loans were secured at the same interest rate proposed during the project proposal through internal funds and Lotte Construction’s credit guarantee.
A Lotte Construction official stated, "Galhyeon 1 District is the largest project currently managed by our company, and we will actively secure funding to swiftly advance the project to complete it as a landmark complex representing the Gangbuk area."
Yoo Guk-hyung, head of the Galhyeon 1 District Association, said, "Although the project was delayed in the past due to conflicts among some members, with the active cooperation of the members, we are now on the verge of completing relocation just one year after its commencement. Regarding the project cost loan, it was smoothly procured through Lotte Construction’s credit guarantee, and we will continue to push the project forward with greater speed."
Meanwhile, the Galhyeon 1 District maintenance project involves developing a large-scale apartment complex consisting of 32 buildings and 4,116 households on a site of 181,213㎡ at 300 Galhyeon-dong. The buildings will range from 6 basement floors to 22 above-ground floors.
The complex boasts excellent transportation conditions, located about a 10-minute walk from Yeonsinnae Station on subway lines 3 and 6. In particular, the GTX-A line of the Great Train Express (GTX) stops at Yeonsinnae Station, allowing travel to Samsung Station in about 9 minutes, making access to the Gangnam area more convenient.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
