Controversy Over Contribution Fees at Sangye Jugong 5 Complex, Preparing to Select Contractor by Year-End

Early This Month, Nowon-gu Office Announced Project Implementation Approval
Total 996 Households, Eliminating 39㎡ Type and Increasing 59㎡ Type
In Litigation with GS Construction After Termination of Contractor

The Sanggye Jugong 5 Complex, which had conflicts with the construction company over construction costs and contributions, has received project implementation approval and will proceed with reselecting the construction company by the end of this year.

Seoul City approved the architectural plan for the reconstruction project of Sanggye Jugong Complex 5 at the 15th Architecture Committee meeting. The photo shows Sanggye Jugong Complex 5 in Nowon-gu, Seoul, on the 31st. Photo by Jinhyung Kang aymsdream@

According to Korea Asset Trust and others on the 10th, the Sanggye Jugong 5 Complex Reconstruction Maintenance Project Committee plans to select a new construction company as early as the end of this year, or by early next year at the latest. Previously, Nowon District Office announced the project implementation approval for the Sanggye Jugong 5 Complex on the 5th.

According to the revised maintenance plan, the Sanggye Jugong 5 Complex will be reconstructed into five buildings with a maximum of 35 floors, totaling 996 households (including 153 rental units). The number of households by area is △59㎡ 378 households (including 153 rental units) △67㎡ 345 households △84㎡ 273 households.

Compared to the original maintenance plan, the total number of households remains the same, but small-sized units were removed and the number of households by area was slightly adjusted. The six 39㎡ units included in the previous plan were removed, while the number of 59㎡ units was increased by eight, and all 70㎡ units (345 households) were changed to 67㎡ units. Additionally, public facilities (Sanggye 6·7 Complex Public Office), cultural facilities (library and youth cultural center) will be installed and donated.

Even if the re-selection of the construction company proceeds, it is known that GS Construction is unlikely to participate in the re-selection. The Sanggye Jugong 5 Complex terminated its contract with GS Construction in November last year. At that time, the construction cost proposed by GS Construction was about 6.5 million KRW per 3.3㎡, and members had to pay an additional contribution of 500 to 600 million KRW to purchase a 59㎡ unit. For those applying for an 84㎡ unit, the contribution was 600 to 700 million KRW. From the members' perspective, they faced a situation where they had to pay an additional amount similar to the apartment price. The price of the Sanggye Jugong 5 Complex soared to 800 million KRW in August 2021 but currently remains at around 510 to 550 million KRW.

In December last year, GS Construction filed a 6 billion KRW damages lawsuit against the project implementer, and the first trial is ongoing. A Korea Asset Trust official explained, "The largest factor in reconstruction project costs is construction costs, and contributions depend on the bids submitted by construction companies," adding, "The selection of the construction company will be decided by resident voting and according to contract processing standards."