588 Out of 2005 Union Members Agree to Dismiss Union Leader
Additional Charges of 40 to 60 Million KRW Expected Before Move-in Due to Decline in Proportional Rate
The 'Anyang Station Prugio The Sharp' complex in Anyang-dong, Manan-gu, Anyang-si, Gyeonggi-do, scheduled for occupancy this October. [Photo by Anyang Jinheung Apartment Reconstruction Association Normalization Countermeasures Committee]
The Normalization Committee of the Reconstruction Association for Jinheung Apartment in Anyang-dong, Manan-gu, Anyang-si, Gyeonggi Province (Anyang Station Prugio The Sharp) announced on the 2nd that it will hold an extraordinary general meeting on the 10th with the agenda of dismissing the association president.
The Normalization Committee will address and process the agenda items of 'Dismissal and suspension of the association president,' 'Dismissal and suspension of the auditor,' and 'Dismissal and suspension of directors.' The committee was launched last June, prompted by the drop in the proportional rate, a profitability indicator of the redevelopment project, from 109.35% to 94%, and is pushing for the dismissal of the association president. As the proportional rate declined, the additional burden per member is estimated to be between 40 million and 60 million KRW. In particular, the committee is raising concerns about having to pay such additional charges while the Anyang Station Prugio The Sharp is scheduled for occupancy in October.
The Normalization Committee believes the drop in the proportional rate is due to the association’s excessive increase in indirect project costs. The total reconstruction project cost is largely divided into the contract construction cost paid to the contractor and indirect project costs used for association operations and support for members’ relocation expenses. Over the past four years, the association increased the contract construction cost by 52.5 billion KRW, but the indirect project costs rose by 212.2 billion KRW. This significant increase in indirect project costs led to a rise in the total project cost and consequently additional charges for the association members.
Additionally, the committee criticizes the association president for violating the 'Act on Maintenance and Improvement of Urban Areas and Dwelling Conditions' (Urban and Residential Environment Maintenance Act). According to this year’s association status inspection conducted by Anyang City, the president violated the Act 33 times in total.
Since its launch, the Normalization Committee has held meetings with local district lawmakers, city council members, Anyang City officials, and association management. The committee is also preparing for the extraordinary general meeting to dismiss the association president and filed a provisional injunction with the Anyang branch of Suwon District Court on the 29th of last month to suspend the effect of the approval of the association president and executives’ reappointment.
The committee received dismissal proposal consent forms from 588 out of 2,005 total association members. According to the Urban and Residential Environment Maintenance Act, the dismissal of association executives requires a general meeting convened upon the request of at least one-tenth of the members, with a majority of members present and a majority of those present agreeing to the dismissal.
The Normalization Committee plans to elect a new association president and executives after pushing for the dismissal, seeking ways to reduce additional charges without delaying occupancy. Kim Hak, chairman of the Normalization Committee, said, "The association members are suffering due to the reckless management of the current president and executives who have been in charge for the past eight years," adding, "We hope that the members’ judgment will be delivered through this general meeting."
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