Apartment Access Restricted Due to Construction Payment Dispute... Resident Inconvenience Grows

Construction Company Occupies Site Over Unpaid Fees
Vehicle Access Blocked by Forklift
Residents Inconvenienced as Complaints Continue

As a dispute over construction payments between the developer and the construction company at a newly built apartment complex in Bukgu, Gwangju has dragged on, inconveniences for residents have been mounting. Some prospective residents are experiencing delays in moving in, while a forklift and banners have blocked the entrances for several days, prolonging the conflict.

A construction company has hung a banner stating "Exercising Retention Rights" at the entrance of a newly built apartment in Bukgu, Gwangju, and is blocking access with a forklift. Photo by Song Bohyun

According to Bukgu District Office, residents, and the construction company on May 7, construction company A has been staging a sit-in by blocking the entrances of an apartment complex in Unam-dong, Bukgu, since April 30, citing unpaid construction fees by developer B. The construction company stated that it has not recovered 13.5 billion won out of a total of 19.7 billion won in construction costs, and has begun exercising its retention rights.

Currently, pedestrian access within the complex is possible, but a forklift has been placed at one vehicle entrance and four pedestrian entrances, making it difficult for large vehicles such as moving trucks to enter. As a result, there are concerns about friction as the move-in schedules of prospective residents are being disrupted.

The construction company claims that it is exercising its lien to recover unpaid construction receivables in accordance with the subcontract agreement, and insists that it has no choice but to exercise its retention rights over the completed building until the full contract amount is paid. In contrast, the developer has countered that the construction company is demanding an increase in construction costs, and it is reported that the developer has filed a complaint against representatives of company A for obstruction of business.

The apartment complex consists of 303 units, and about 85% of residents have already moved in since its completion in early April. However, some prospective residents are facing difficulties moving in due to restricted access.

In connection with this situation, one complaint has been filed through the National Sinmungo petition system and six complaints have been received by phone at the Bukgu District Office. Complainants have alleged that construction company employees smoke or behave in a threatening manner inside the complex, obstruct traffic, and have requested that the district office mediate the dispute.