GS Construction and Maplejai Reach Agreement on 78.8 Billion Won Construction Cost Increase

Move-in Scheduled for Late June
GS Construction Plans to Withdraw Construction Payment Lawsuit

GS Construction and the reconstruction association for Seoul's Sinbanpo District 4 (Maplejai), which had been in conflict over an increase in construction costs, have reached an agreement to raise the amount by 78.8 billion won. As a result, the move-in scheduled for the end of June is expected to proceed as planned.

According to the maintenance industry on April 18, the Maplejai association has finalized an agreement to increase construction costs by 78.8 billion won in response to GS Construction's request.

Once the association approves the decision through a general meeting, GS Construction plans to withdraw its lawsuit against the association regarding construction payments.

Previously, at the end of last year, GS Construction demanded a total increase of 486 billion won in construction costs from the association and filed a lawsuit with the Seoul District Court for 308.2 billion won of that amount, which was related to changes in the construction environment.

Maplejai bird's-eye view. Screenshot from GS Construction website

For the remaining amount, which corresponds to direct construction costs, the association requested verification from the Korea Real Estate Board, with results expected as early as June.

With both parties having reached an agreement on a significant portion of the requested construction cost increase, the dispute between the two sides has come to an end for now. GS Construction stated that the efforts of the Seoul Metropolitan Government, which dispatched a coordinator to mediate, played a significant role in this resolution.

A GS Construction representative said, "We are relieved to have reached an agreement with the association through the systematic mediation of the Seoul Metropolitan Government and Seocho District Office. Although there have been many difficulties due to unforeseen changes in the construction environment after groundbreaking, we will do our best to ensure the project is successfully completed through to move-in."

With this, a series of construction cost increase disputes between GS Construction and maintenance project associations have also been resolved. Earlier this month, GS Construction agreed to an increase of 52 billion won?about half of the requested amount?with the Cheolsan Jugong 8·9 District reconstruction association. In February, the company also reached an agreement to pay an additional 30 billion won to the Jangwi 4 District redevelopment association in Seongbuk District.