The Korean Confederation of Trade Unions (KCTU) Yongin branch plans to hold a rally on the 10th to condemn HDC Hyundai Development Company, the construction company for the distribution center development project in Anseong Gyuji area (Anseong distribution center).
The project implementer 'Gosam Logistics' announced on the 8th that it, along with the KCTU Yongin branch, plans to hold a rally in front of the Yongsan I-Park Mall, where HDC Hyundai Development Company’s headquarters is located, from the 10th to condemn 'the illegal acquisition of business rights and illegal completion of the building.'
A representative of Gosam Logistics said, "HDC Hyundai Development Company demanded an additional construction cost of 26.4 billion won, citing the need to reflect the rise in prices, despite having received 60 billion won for the construction costs," and added, "The project implementer experienced operational difficulties and the business sites transitioned to auction due to HDC Hyundai Development Company’s refusal to agree to pay the monthly operating costs of 50 million won for the project implementer, which was necessitated because of the refusal to provide additional construction costs."
HDC Hyundai Development Company acquired the Anseong distribution center property through auction on April 11 last year. Subsequently, on March 14, it received building usage approval from Anseong City.
Currently, Gosam Logistics is engaged in three lawsuits against HDC Hyundai Development Company and its trustee for the Anseong distribution center, Shinhan Asset Trust, regarding the cancellation of the registration of ownership transfer, objections to a provisional injunction prohibiting disposal, and a claim for value-added tax damages.
A said, "I discovered that HDC Hyundai Development Company illegally confiscated trees owned by the project implementer during the process of obtaining building usage approval from Anseong City in March, and reported this to the Anseong Police Station," adding, "We plan to hold a rally starting on the 10th in front of HDC Hyundai Development Company’s headquarters at Yongsan I-Park Mall to condemn its illegal business practices alongside the KCTU Yongin branch."
HDC Hyundai Development Company rebutted that Gosam Logistics caused delays in the project schedule due to delays in licensing and design changes, but failed to respond to the legitimate request for an increase in construction costs. HDC Hyundai Development Company claims that the failure to execute the sale of the distribution center and extend project financing (PF) is also the responsibility of the project implementer.
An official from HDC Hyundai Development Company explained, "In accordance with the payment guarantee obligation established at the time of the PF contract, we proceeded with subrogated payment and repaid the loans of the project implementer," stating, "We participated in the auction to obtain ownership following proper procedures, as we judged that recovering the amount would be difficult."
He continued, "We plan to continue legal and administrative responses to resolve unnecessary misunderstandings with the project implementer and ensure that related procedures are smoothly concluded."