990 Billion Won Construction Contract Terminated for Sangdaewon 2 District; Union Members Face Increased Burden

The Sangdaewon 2 District housing redevelopment project in Seongnam City is facing a significant setback with the termination of its 984.9 billion won construction contract with DL E&C. This abrupt halt, occurring just as construction was set to begin after a decade of planning, including relocation and demolition, places an immense burden on the union members who have invested heavily in the project. The situation is exacerbated by internal conflicts within the project union, including disputes over brand recognition and construction costs, as well as serious allegations of corruption involving the union leader.

DL E&C has stated its intention to pursue legal action to confirm its status as the constructor. The company claims that the union leadership demanded the use of specific finishing materials from a particular supplier, which DL E&C refused. This refusal, the company alleges, intensified pressure for a contractor change. Furthermore, DL E&C has countered claims of bribery, suggesting that the current situation involves a new contractor potentially operating under the same influential entity, despite using a different brand name.

The internal strife within the union has been intense. A faction attempted to oust the union leader, with a significant majority voting in favor of dismissal. However, the union leader filed an injunction, which was granted, allowing them to retain their position pending further legal review. This internal power struggle has led to a chaotic situation where the termination of DL E&C's contract was approved, but the subsequent attempt to appoint GS E&C as the new contractor failed due to insufficient quorum. Consequently, the project is now in a state of limbo, with no construction company in place and union members facing the immediate burden of paying interest on their relocation loans, a responsibility previously covered by the project.