[Exclusive] "We Trusted the HUG 100% Guarantee"... Claims of 25 Billion Won in Damages Spread Over Sacheon A Lease Housing Project

Union Members Say "Trust Has Collapsed"
Developer States "We Are Seeking Solutions"

Controversy is intensifying over the A lease housing project currently being promoted in Sacheon, South Gyeongsang Province.

Union members are strongly protesting, estimating that damages have already reached approximately 25 billion won. They argue that this is not a simple business delay but an issue directly tied to their livelihoods.

The core of the controversy lies in the promotional phrase “HUG 100% Guarantee” used during the sale and recruitment process. HUG refers to the Housing and Urban Guarantee Corporation.

The union members stated, “We believed at least our principal would be protected because of the use of a public institution’s name and the phrase ‘100%,’” and added, “There was no detailed explanation about the scope and conditions of the guarantee.” Some emphasized, “The focus on public credibility in the promotion was the decisive factor in building our trust.”

Photo of bait advertisement with confirmed sale price for Sacheon Park Norcia.

Recently revealed internal group chat messages have further fueled the controversy. According to reports, there were remarks suggesting that “there is nothing” in relation to Park Norcia, the project developer.

Union members see this as circumstantial evidence reflecting the financial situation at the time. However, the exact context and factual accuracy of these remarks require objective verification.

Instructions for executing the “0th interim payment loan” are also at the center of the controversy. Some union members expressed distrust, saying, “We were advised to take out a loan due to business funding issues, but there was no clear explanation regarding how the funds would be used.”

Furthermore, another point of contention is whether there was a sufficient explanation about the responsibility structure and contractual rights during the transition from a local housing cooperative model to a rental housing cooperative model.

Union members stated, “We have been suffering for years under the burden of interest and living difficulties,” and raised their voices, saying, “This is not a simple contractual dispute, but an issue where the lives of citizens are being destroyed.” They further urged, “The flow of funds, accounting records, and the guarantee structure should be disclosed transparently.”

In response, the project developer acknowledged that some of the claims differ from the facts, but stated that they will focus on finding solutions rather than escalating the conflict. They also indicated that, for now, they do not intend to pursue legal action against the union members.

With claims of damages totaling around 25 billion won, calls are mounting for urgent clarification of the facts regarding fund management and the scope of guarantees. Attention is also focused on whether the relevant authorities will take action.

This content was produced with the assistance of AI translation services.