Dunchon Jugong Association Begins Preparing Agreement Proposal
Considering Postponing Next Month's General Meeting
Gangdong-gu Sends Official Letter Urging Association to Negotiate
The association will create a negotiation proposal and initiate renegotiations following the suspension of infrastructure construction at Olympic Park Foreon (Dunchon Jugong). In addition to the proposal presented by the construction company, various other options will be discussed, but it is uncertain whether an agreement between both parties will be reached soon.
If negotiations and the resumption of construction are delayed, the scheduled move-in date of the 27th of next month could also be affected. In this case, whether or not to grant a 'temporary use approval' is expected to be the biggest variable in maintaining the move-in schedule. Gangdong District Office, which holds the key to the temporary use approval, has expressed a stance of maximum cooperation, but there are also views that it would be difficult to grant use approval to complexes that do not meet the approval conditions.
Olympic Park Foreon in Gangdong-gu, Seoul (Dunchon Jugong Reconstruction) is the largest apartment complex in South Korea based on a single complex, with 12,032 households. [Image source=Yonhap News]
Association Prepares to Resume Construction Cost Negotiations
According to the Dunchon Jugong Reconstruction Association on the 23rd, the association will prepare a negotiation proposal regarding the construction company's request for a cost increase and meet with the construction companies again. The association considers sufficient negotiation necessary and is even considering postponing the general meeting scheduled for the 23rd of next month by a few days. A representative of the Dunchon Jugong association explained, "We will prepare the association's proposal on this day and contact the construction companies to meet soon," adding, "At the last delegates' meeting, a revised proposal of 17.2 billion KRW was submitted but rejected, and we intend to discuss various proposals including the 17.2 billion KRW increase."
The outcome of the association's construction cost negotiations is expected to determine whether the move-in schedule will be delayed. In such a case, the announced move-in schedule can be maintained through temporary use approval. Temporary use approval allows the use of a building completed before the final inspection. The authority for permits and approvals for this complex is Gangdong District Office. Previously, in November last year, Gaepo DH Firstier I-Park was denied final approval, but received temporary use approval three days before the scheduled move-in date. Initially, the Gangnam District Office rejected the final approval because the maintenance infrastructure and donation construction were not completed, but approved it due to growing concerns about move-in delays.
Olympic Park Foreon may also receive temporary use approval in a similar manner. The number of households scheduled to move in this complex is as high as 12,032. Also, apart from the infrastructure, the apartment complex construction has been completed, and a preliminary inspection for residents was conducted from the 12th to the 14th. However, it is uncertain whether the construction cost conflict will be resolved soon, and since entrance road construction has not been completed, temporary use approval may be difficult. An association official said, "Instead of lowering the height of the soundproof wall, we changed the design to carry out asphalt low-noise paving as an approval condition," adding, "Since the approval conditions have not been met, we do not know how the district office will respond. They said it would be burdensome to grant temporary use approval if the entrance road construction is not completed."
Gangdong District Office: "Quick Negotiations Needed"
Gangdong District Office is urging the construction companies to negotiate quickly as much as possible. The district office sent an official letter to the association the day before regarding the resumption of construction. The letter urged the association to resolve conflicts due to concerns if construction is suspended. A Gangdong District Office official said, "The association said they would internally review the construction cost negotiations, so we are waiting." A Seoul city official explained, "The final approval is 100% a matter for the district office to decide," adding, "They have expressed a stance to try to avoid any disruption to the move-in, so we are monitoring the situation."
An industry insider said, "If many damages are expected due to the lack of final approval, temporary use approval can be granted. However, if the district office applies strict standards, it may be difficult," adding, "The road near the entrance is the face of the complex, so the association has no choice but to hurry."
Olympic Park Foreon, which reconstructed the Dunchon Jugong Apartments, also experienced a six-month construction suspension in 2022 due to conflicts over construction costs with the construction group.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
