Hakdong 4 District Redevelopment Members: "Distrust in President's Misconduct... Hyundai Development Must Fulfill Guarantees"

Additional Contributions of Around 100 Million Won Imposed After President's Tenure
Doubts Raised Over Agreement Drafted One Year After Hyundai Development Company's Guarantees
No Enforcement Mechanism for Promised Terms... Most Member Benefits Lost

On the morning of the 16th, the redevelopment fast-track project union of Hakdong 4 District held a press conference in front of the Gwangju District Court in Jisan-dong, Dong-gu, Gwangju. Hakdong 4 District redevelopment fast-track project union official photo

Some members of the Hakdong 4 District Housing Redevelopment Maintenance Project Association condemned the misconduct of the association president during his tenure at Hakdong 3 District and demanded that HDC Hyundai Development Company fulfill the guarantees it promised to avoid contract termination.

On September 16, the Rapid Project Union of Hakdong 4 District Redevelopment held a press conference in front of the Gwangju District Court in Jisan-dong, Dong-gu, Gwangju, stating, "Mr. Cho, who serves as the association president for both Hakdong 3 District and Hakdong 4 District, was indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust) and occupational breach of trust in connection with the tree planting contract and the free acquisition of reserved land in the Hakdong 3 District project. He is currently undergoing the second trial at Gwangju District Court," and added, "Despite the strong evidence of intent behind the crimes, the court sentenced him to a fine of 800,000 won with a verdict effectively acquitting him, which continues to cause deep concern and distrust among association members."

They said, "During the 2018 association president election, Mr. Cho pledged not to receive any salary until all general units were sold, but after becoming president, he has continuously received a salary, breaking his promise." "He repeatedly emphasized that 'there would never be any additional contributions,' but in reality, in July this year, an additional contribution of 98 million won per member was imposed for a 34-pyeong unit, and there could be additional contributions in the 200 million won range in the future. The annual promise that construction would begin has also proven to be false, and it is questionable whether construction will even begin this year," they argued.

They further stated, "In June 2022, HDC Hyundai Development Company proposed 14 guarantees to the association to avoid contract termination following the demolition collapse accident, but the executive board postponed the standard procedure of drafting an agreement-which is usually completed within a few days after a settlement-for one year and two months." They continued, "In August 2023, a revised agreement was submitted to the general assembly, but it had not been reviewed by a legal advisor, and there are indications that Mr. Cho's son, who is a full-time director, personally drafted the agreement with Hyundai Development Company."

They added, "The agreement contained no safeguards to hold Hyundai Development Company accountable even if it failed to fulfill the 14 promised items. As a result, the association cannot enforce the fulfillment of the promises, causing members to lose benefits explicitly guaranteed-such as home appliances and move-in bonuses worth about 44 million won per member-and also lose the right to exercise the initial general sale price in kind, resulting in damages amounting to hundreds of millions of won per member."

Furthermore, they asserted, "For the past four years, President Cho has delayed the project due to incompetence, irresponsibility, and lack of any plan, and even distorted the settlement of the collapse accident in favor of Hyundai Development Company." They demanded, "The president and the full-time director should immediately resign and restore the agreement guaranteeing 44 million won per member to recover the rights and interests of the association members."