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Dunchon Jugong Apartment Reconstruction ‘Stop’ due to ‘extra cost’ dispute

Construction at the site of Dunchon Jugong Apartment in Gangdong-gu, Seoul, the largest reconstruction project in history, was suddenly stopped. In a situation where the completion rate exceeds 50%, the union and the construction company are arguing over money.

Reporter Han Sang-woo reports.

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This is the reconstruction site of Dunchon Jugong Apartment in Gangdong-gu, Seoul.

With 12,000 households, this is the largest reconstruction in history.

However, when the building went up more than half, there were signs all over the place saying that the construction was stopped.

[건설현장 근로자 : 지금 현장에서 (정리) 하고 있잖아요. 장비 빼고 있잖아요. 15일부터 중단하니까. 장비 이제 가져갈 거 가져가야 되니까.]

Because of money problems.

Two years ago, the head of the reconstruction association at that time signed a contract with a construction company to increase the construction cost by 560 billion won from the original plan and was fired by the union members.

The newly joined union is arguing that the contract is invalid and the construction company is insisting on maintaining the contract.

In the meantime, the construction company declared a halt to the construction, saying that it did not even receive 1.7 trillion won for the construction cost, and the union is fighting that it can change the company.

[건설사 관계자 : 현 상황으로서는 타결 여지가 전혀 보이지 않습니다.]

[조합 관계자 : 10일 이상 공사 중단을 했을 때는 (시공사가) 계약해지 통보를 한 것으로 보고 조합도 시공사에 계약해지 통보를 하겠다.]

There is no legal basis for the government or local governments to intervene, although the supply of mini-new city-level apartment complexes has been delayed and has had a huge impact from landlords to the real estate market.

[이은형/대한건설정책연구원 책임연구원 : 투명성이 담보가 되면 사업성도 올라가죠. 공공의 참여를 통해서 민간 정비 사업의 투명성을 높이는 데 핵심이 있는 겁니다.]

With the new government promising to revitalize reconstruction, it is necessary to strengthen management and supervision so that similar problems do not continue.

(Video editing: Kim Jong-mi, VJ: Jeong Young-sam)