Seoul City to Mediate Remodeling Dispute Over Construction Costs at Ichon Hyundai

Expansion from Coordinator Dispatch to Remodeling in Maintenance Projects

Seoul City announced on the 7th that it has immediately dispatched a coordinator to mediate the conflict at the remodeling site of Hyundai Apartment in Ichon-dong, Yongsan-gu, where construction stoppage was recently announced due to disputes over construction costs.

The site was undergoing foundation work (with a progress rate of 10.5%) earlier this month, but conflicts arose between the contractor and the association over the adjustment of the construction period and the increase in construction costs. The contractor has announced a construction stoppage. The Hyundai Apartment in Ichon-dong signed a construction contract with Lotte Construction in April 2021 and started construction in August 2022.

Currently, under the Housing Act, there is no authority to supervise or oversee remodeling project associations for multi-family housing. However, as a measure to resolve conflicts, the city has decided to expand the coordinator system to remodeling complexes as well.

The city is currently conducting a "Study on Improving the Operation Standards for Multi-family Housing Remodeling" and plans to prepare an improved management system to propose institutional improvements to the government.

Han Byung-yong, Director of the Housing Office of Seoul City, said, "Through the city's efforts to resolve conflicts over construction costs in redevelopment projects, conflicts between associations and contractors have been resolved and projects have been normalized, showing positive results. For remodeling projects, if the association finds it difficult to resolve issues on their own, we will actively support early conflict resolution and smooth project progress by utilizing the city's conflict management expertise."