Reconstruction Complex Disputes: Prolonged Legal Battles and Cost Increases

Reconstruction projects in Seoul face prolonged legal battles over additional construction costs, impacting residents and developers.

### Legal Battles Over Construction Cost Increases in Seoul's Reconstruction Projects
* ⚖ Despite residents moving in over two years ago, the construction company is suing the association of a Songpa-gu complex for an additional construction cost of **107 billion Korean won**.
* ⏳ Settlements for reconstruction projects like these usually take several years, and it is regrettable that the disputes have escalated to this extent due to the **lack of agreement**.
* 💰 The Gangbuk-gu complex, set for occupancy in August, has seen its construction cost rise by **674 billion won**, with the recent demand for an additional **323 billion won** leading to another legal battle.
* 📈 The total construction cost now exceeds the initial estimate by **more than 50%**, placing an additional burden of about **57 million Korean won on each association member**.
* 🏗 Legal issues related to construction cost increases are not limited to Seoul, as areas such as **Incheon Michuhol-gu, Songdo, Gyeonggi, Yongin, and Pangyo** are also experiencing a **surge in such disputes**.
* 📜 The government introduced standard construction contracts for redevelopment projects at the beginning of this year, aiming to **regulate the flow of increased construction costs** by requiring **detailed breakdowns before signing**.
* 🤝 Efforts are made to mediate disputes through urban development dispute resolution committees before resorting to lawsuits, but the **timing of legal revisions to address these issues remains uncertain**.

It is a reconstruction complex in Songpa-gu, Seoul, with about 1,900 households. Although more than two years have passed since the residents moved in, the construction company is suing the association, demanding an additional construction cost of 107 billion Korean won. A similar reconstruction complex built by the same construction company in Gangnam-gu, even after more than three years since occupancy, is still in litigation over an additional construction cost of 85 billion won. How many years does it usually take for reconstruction projects like this to settle? Since they couldn't reach an agreement, it's somewhat regrettable that it had to escalate to this extent. The reconstruction complex in Gangbuk-gu, Seoul, scheduled for occupancy in August, has already increased the construction cost by 674 billion won. However, the construction company recently demanded an additional increase of 323 billion won, leading to another legal battle as the association resisted. The total construction cost exceeds by more than 50% compared to the initial estimate. Each member of the association will have to bear an additional burden of about 57 million Korean won, which is why we simply cannot accept it.

Developers' feet are not only here. Incheon Michuhol-gu, Songdo, Gyeonggi, Yongin, Pangyo, and other areas are experiencing a surge. Due to the burden of past construction suspensions, both parties tried to reach an agreement rather than resorting to lawsuits. The construction costs between the two sides increased significantly, and even embezzlement issues overlapped, making lawsuits a daily occurrence. The government introduced standard construction contracts for redevelopment projects at the beginning of this year, requiring the submission of detailed construction cost breakdowns before signing the contract. However, critics argue that it is not mandatory, and the frequent unit price changes during construction process undermine its effectiveness. Due to the lack of proper flow of increased construction costs between mutual governments, it is becoming a long-term issue now. It is necessary for information to flow well between associations and developers, so before going to court, there are efforts to mediate disputes in urban development dispute resolution committees. However, it is uncertain when the legal revision will be pursued.

"도저히 불가" 강남도 송파도 비명…전국 재건축 아파트 무슨 일 (자막뉴스) / SBS

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Legal Battles Over Reconstruction Project Costs in Seoul

Reconstruction projects in Seoul's residential complexes are facing prolonged legal battles over additional construction costs, with one project exceeding the initial estimate by over 50%.

The construction company is suing the associations for demanding billions of Korean won in additional expenses, leading to escalating conflicts.

The situation has led to a significant financial burden on the members of the associations, causing regret over the lack of agreement.

Construction Cost Disputes in South Korea

Construction costs have surged in various areas of South Korea, leading to frequent lawsuits between developers and local governments.

The government's introduction of standard construction contracts is facing criticism for its lack of effectiveness in controlling cost increases.

There is a pressing need for better information flow and dispute mediation between developers and associations to address the long-term issue of construction cost disputes.