Construction cost increase proposal rejected, infrastructure work halted
Regarding temporary use approval, "No discussion has taken place"
Anxious future residents completed preliminary inspection last month
A construction halt has occurred once again at Olympic Park Foret On (Dunchon Jugong), the largest reconstruction complex since the era of Dangun, just one month before move-in. Although the possibility of denying temporary use approval was mentioned with only a month left before move-in, both Seoul City and Gangdong-gu stated that there has been no discussion on this matter.
Olympic Park Foreon in Gangdong-gu, Seoul, is the largest apartment complex in Korea with 12,032 households. Scheduled for move-in starting on the 27th of next month, it recently completed a preliminary inspection, but construction was halted from the 18th due to conflicts over construction costs with the infrastructure contractor. (Photo by Yonhap News)
According to Gangdong-gu Office on the 22nd, three contractors responsible for roads and landscaping within the complex stopped infrastructure construction from the 19th. The three contractors (Dongnam Gongyeong, Jungang Construction, Jangwon Landscaping) requested an increase of 17 billion KRW in construction costs citing extension of construction period and inflation, and the union delegates' meeting put the agenda forward but it was reportedly rejected by a margin of 2 to 3 votes. The delegates' meeting proposed a compromise to adjust the increase to about 10.3 billion KRW, but the contractors did not accept it.
The contractors originally planned to complete the construction by the end of this month. With construction halted ahead of the scheduled move-in on the 27th of next month, the move-in schedule is likely to be affected. A Gangdong-gu official said, "There is still a lot of work to be done and it is a situation where construction must not stop," adding, "There are too many variables related to mediation of construction costs. We are not at a stage where we can discuss the (move-in) part yet."
Under pressure, Gangdong-gu has visited the union office for two consecutive days to discuss countermeasures. The official explained, "Landscaping and road construction have almost stopped, and the key to resolving the construction halt lies with the union," adding, "Since the agenda for increasing construction costs was rejected, we need to hear the union's opinion on possible measures and negotiate. Negotiation on construction costs is the most urgent."
Initially, the union intended to pursue partial completion approval and temporary use approval due to the construction halt. Temporary use approval means obtaining permission to temporarily use the completed parts before the final completion inspection. Even if only temporary use approval is obtained without final completion approval, move-in is possible. Final completion approval requires completion of infrastructure construction. A union member waiting to move in said, "I have not received any notice from the union yet. It is frustrating not knowing how the situation is unfolding."
The view of Olympic Park Foreon in Gangdong-gu, Seoul, about a month before move-in (Dunchon Jugong reconstruction). Olympic Park Foreon is the largest apartment complex in Korea with 12,032 households. [Image source=Yonhap News]
Some have pointed out that temporary use approval or final completion approval might be impossible. In response, Gangdong-gu stated, "We have not discussed (the possibility of temporary use approval)." A Seoul City Housing Office official said, "That is a premature judgment," adding, "There is still about a month left, so we are monitoring the situation."
If the construction halt period prolongs, the damage to residents could continue to increase. Kim Gisang, a Gangdong-gu council member, said, "If final completion approval or move-in is delayed, it will cause tremendous confusion, so neither the union nor the district office can escape responsibility," adding, "We received an answer that they will try to find a consensus between the contractors and the union to resume construction quickly."
In this reconstruction site, conflicts over construction costs with the contractors also occurred in 2022, causing a six-month construction halt. Currently, apart from infrastructure, the apartment complex construction is being completed, and contractors including Hyundai Construction conducted preliminary inspections for residents from the 12th to the 14th. The contractors informed prospective residents that move-in is possible from the 27th of next month until March 31 of next year. Hyundai Construction explained, "We are encouraging smooth negotiations to ensure the project can be completed quickly."
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