Seongnam Sangdaewon2 District: DL E&C construction contract terminated again; GS E&C selected

Seongnam Sangdaewon2 District redevelopment association held an extraordinary general meeting 5 in 30 and passed a motion to terminate its construction contract with DL E&C. At the same meeting, it also passed a motion to select GS E&C as the new builder. An association official said that more than half of all association members participated, satisfying the quorum requirement, and that all the motions on the agenda passed.

Last month, on 11, the association also voted to terminate its contract with DL E&C. DL E&C subsequently applied to the court for an injunction suspending the decision's effect and won a ruling in its favor, restoring its status as builder. The latest meeting result means the contract has been terminated again, just one month later.

The association said it had addressed shortcomings previously pointed out by the court before holding this meeting. DL E&C claimed the meeting was invalid and riddled with illegality and defects, including forged written resolutions and quorum records, refusal to accept withdrawal forms, and proceedings conducted behind closed doors. DL E&C announced that it would immediately begin strong legal action to set things right.

The assembly also passed a motion to approve the reappointment of Chairperson Jeong. At an extraordinary general meeting held last22day, the dismissal motion was passed at an extraordinary general meeting convened by the cooperative’s emergency committee. Police sought an arrest warrant for Chairperson Jeong on suspicion of bribery under the Act on the Aggravated Punishment of Specific Crimes last29day.

With this decision, the construction contractor status for the redevelopment project has changed again. Both the cooperative and DL E&C have announced plans to take legal action. Further schedules for construction and a court ruling remain pending.

The motions passed at the assembly that day were termination of the construction contract, selection of GS Engineering & Construction, and approval of Chairperson Jeong’s reappointment. The progress of related documentation and legal proceedings could affect the project schedule going forward.