Bowed President of Gyeongnam Development Corporation "Deeply Responsible for Namyang Hutton Move-in Delay, Move-in by July Next Year for Sure"

"Once the complaint case related to the public housing in Hyeondong, Changwon, Gyeongnam is concluded and the public housing construction proceeds normally, I intend to take full responsibility as the president and decide on my position."

On the 2nd, Kim Gwonsu, president of Gyeongnam Development Corporation, held a press conference at the Gyeongnam Provincial Government Office and apologized for the delay in construction and move-in of the Hyeondong Namyang Hutton public apartment in Changwon, stating this.

Kim Gwonsu, President of Gyeongnam Development Corporation, is apologizing for the delay in completion and occupancy of the Namyang Hutton public housing in Hyeondong, Changwon. Photo by Lee Seryeong

President Kim said, "Since taking office as the president of the corporation, there have been delays in move-in due to the bankruptcy of the contractor for the Hyeondong public housing in Changwon and difficulties in normalizing the project after the cancellation of the designation of the project implementer for the Ungdong 1 district," adding, "I deeply feel responsible as the president and sincerely apologize to the residents of the province."

He stated, "On November 20th last year, we signed a contract with Daeji Comprehensive Construction for the remaining construction work," and added, "We will thoroughly supervise and guide to complete the construction by May next year and enable move-in by July."

He also emphasized, "We will make 2025 a year of new leap and innovation," and said, "To stabilize the corporation's finances, we will sell assets worth 174.3 billion KRW to secure financial soundness and improve integrity."

He pledged to carry out personnel and organizational restructuring, business restructuring, financial management innovation, and strengthening of safety management.

Kim Gwonsu, President of Gyeongnam Development Corporation, is explaining the completion of the remaining construction and the move-in schedule of the Namyang Hutton public housing in Hyeondong, Changwon. Photo by Lee Seryeong

President Kim said, "We will turn the current crisis faced by the corporation into an opportunity, cooperate and innovate to become a public enterprise trusted by the residents."

Regarding the approximately 5.4 billion KRW compensation for the delay in move-in due to the extension of the construction period and the fact that President Kim was accused of breach of duty in July, he explained, "The first investigation has been completed, and since there is no violation of the law, it will be concluded soon," adding, "The amount spent should be recovered through trial."

Aerial view of Namyang Hutton public housing in Hyeondong, Masanhappo-gu, Changwon-si, Gyeongnam. Provided by Gyeongnam Provincial Government.

The Hyeondong Namyang Hutton Apartments, built by Gyeongnam Development Corporation, a public enterprise under Gyeongnam Province, in Hyeondong, Masanhappo-gu, Changwon City, is a public housing complex with a total of 1,159 units, including 350 public sector units and 809 public rental units.

The original move-in date was February, but it was postponed once to May and then again to August.

Then, on June 11, about a month before the completion deadline of July 24, with a progress rate of about 92%, the main contractor Namyang Construction filed for corporate rehabilitation at the Gwangju District Court, causing the construction to be completely halted.

The development corporation explained that it recruited a new contractor through the Construction Guarantee Association and signed a contract with Daeji Comprehensive Construction, the successful bidder after two failed bids, along with a guarantee construction company.

It is expected to take about six months in total to complete the remaining apartment construction, including about two months for consultations with Daeji Comprehensive Construction and subcontractors and about four months for finishing work.