Aftermath of Shindonga Court Management... Cancellation of Recruitment Announcement for 'Geomdan New Town Familier Eliph'

Cancellation of Recruitment Notice Ahead of Winner Announcement
"Subscription Applicants Can Reuse Subscription Savings Account"
Geumdan Palmier Eliph's Sales Guarantee Also Invalid
No Changes to Joint Construction Complex with Moa General Construction

Shindonga Construction, which filed for corporate rehabilitation (court receivership), has canceled the resident recruitment announcement for 'Geomdan New Town Palmier Elif.'

Notice for Famille Elif in Geomdan New Town. Screenshot from the sales website.

On the afternoon of the 8th, Shindonga Construction posted a notice on the Geomdan New Town Palmier Elif website stating that the recruitment announcement was canceled due to circumstances of the project owner. Shindonga Construction and Gyeryong Construction Industry were scheduled to announce the winners that day, but judged that it would be difficult to proceed with the project and canceled the resident recruitment announcement altogether.

Shindonga Construction received subscription applications on the 31st of last month, but the project was undersubscribed with only 313 applications for 618 units in the first and second priority subscription rounds. Geomdan New Town Palmier Elif is a joint construction project by Shindonga Construction (80%) and Gyeryong Construction Industry (20%). The complex is a project to build 669 units in 11 buildings up to 15 stories high on block AA32 of Geomdan New Town.

With the cancellation of the resident recruitment announcement, subscription savings accounts of applicants can be reused. Article 57, Paragraph 4 of the Housing Supply Regulations stipulates that "those who have received a refund of the deposit already paid or are unable to move into the relevant housing due to the bankruptcy of the project owner or cancellation of resident recruitment approval" are not considered winners.

In the case of Geomdan New Town Palmier Elif, the cancellation of the resident recruitment announcement also nullified the sales guarantee from the Housing and Urban Guarantee Corporation (HUG). The joint implementer, Gyeryong Construction Industry, is discussing options such as acquiring Shindonga Construction's project shares.

A HUG official explained, "The sales guarantee is obtained to receive the resident recruitment announcement, but since the resident recruitment announcement was canceled, the existing guarantee is also canceled," adding, "To recruit residents again, the project site must be normalized and the resident recruitment approval process must be followed again."

Goduk International New City Miraedo Palmier Guide. Homepage Capture

For 'Godeok International New Town Miraedo Palmier,' which conducted contracts from the 6th to the 8th, the project will proceed without construction changes. This site is jointly implemented and constructed by Moa General Construction (80%) and Shindonga Construction (20%) and is scheduled for occupancy in September. Godeok International New Town Miraedo Palmier is a project to build 642 units in 10 buildings up to 23 stories high in A50BL of Pyeongtaek Godeok Internationalization Planning District.

Moa General Construction stated, "Regardless of Shindonga Construction's court receivership, this project site will be completed without any issues under Moa General Construction's responsible construction, proceeding as originally planned without changes," and added, "There are no construction changes due to the court receivership."