"Can't Raise It" VS "Then Can't Build"… Jangwi 4 District and GS Construction Mediation Led by Seongbuk-gu

GS Construction Demands Increase in Construction Costs, Announces Work Suspension
Seongbuk District Mayor: "Mobilizing All Administrative Efforts to Minimize Damage to Association Members and Buyers"

Seongbuk-gu, Seoul, has rolled up its sleeves and stepped in to mediate the conflict over rising construction costs in Jangwi 4 District. Lee Seung-ro, Mayor of Seongbuk-gu, visited the redevelopment site (wearing a yellow jumper). Photo by Seongbuk-gu.

Seung-ro Lee, the mayor of Seongbuk-gu, Seoul, has actively intervened in the Jangwi 4 District, which is facing a construction halt crisis due to GS Construction's demand for increased construction costs.

According to Seongbuk-gu on the 19th, in a situation where numerous buyers including union members are expected to suffer damages due to the unilateral suspension of construction by the contractor of Jangwi 4 District, the 'Seongbuk-gu Conflict Mediation Committee TF' has been formed. They are closely cooperating with Seoul city conflict mediation experts and continuing mediation and arbitration efforts.

At the same time, the district office strongly urged the contractor not to halt construction during the dispute mediation period over construction costs, and requested active cooperation in conflict mediation to ensure that the dispute over increased construction costs can be resolved reasonably.

Visiting the site that day, Mayor Lee said, "Including Jangwi 4 District, Seongbuk-gu is carrying out the largest number of redevelopment projects nationwide, so we are very sensitive to conflicts over construction costs between the union and the contractor." He added, "We are mobilizing all of Seongbuk-gu's know-how related to redevelopment projects, such as the Seongbuk-gu Conflict Mediation Committee TF, to actively mediate so that damages to union members and buyers are minimized, and we are strongly urging that no construction halt occurs during the dispute mediation period."

Jangwi 4 District is a large-scale site scheduled for completion in March next year, consisting of 31 buildings with up to 31 floors and 2,840 households. GS Construction has requested an increase of about 72.2 billion KRW in construction costs since early this year, but after failing to reach an agreement with the union, tensions peaked when they hung a 'Construction Suspension Notice' banner at the construction site on the 12th.