The redevelopment project of Daejo 1 District in Eunpyeong-gu, Seoul, which had faced construction halts and disputes over increased construction costs due to conflicts between the union members and the executive body, has been resolved after more than a year.
Seoul City announced on the 1st that after dispatching a redevelopment project coordinator in January last year and continuously holding meetings involving the city, district, union, and contractor, an agreement between the union and the contractor was reached. They agreed on an increase of 256.6 billion KRW in construction costs, and the related approval for the increase has also been completed.
The Daejo 1 District redevelopment project saw conflicts arise as the contractor demanded a total increase of 377.1 billion KRW, including 177.6 billion KRW for design changes and specialized designs, and 199.5 billion KRW for losses due to construction stoppages, extended construction periods, and price fluctuations.
According to the city, the redevelopment project coordinator reviewed the submitted materials from both the union and the contractor regarding the construction cost increase, proposed adjustment and mediation plans, and facilitated further negotiations between the union and the contractor based on these plans. A consultative body consisting of the coordinator, city, district, union, and contractor was formed to conduct discussions.
Since 2012, the redevelopment project coordinator system dispatches a group of experts?including specialists in architecture, urban planning, urban administration, urban redevelopment, and lawyers?to sites where redevelopment projects are delayed or experiencing conflicts. Last year, coordinators were dispatched to a total of 15 redevelopment areas. Following agreements reached in Mia 3 and Anam 2 Districts in August, and Yeokchon 1 District in December, agreements were also reached in January this year for the remodeling project of Hyundai Apartments in Ichon-dong and last month for Daejo 1 District, totaling eight districts. Currently, mediation and arbitration activities are ongoing in six districts, including Cheonho 1 District and Noryangjin 6 District.
Choi Jin-seok, Director of the Housing Office at Seoul City, stated, "Since various conflicts such as internal union disputes and construction cost conflicts can cause long-term delays in projects, the city will continue to actively engage in conflict management to prevent and resolve issues in advance, striving to enable prompt housing supply."
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