Concerns are rising about project delays due to the vacancy of the association president in the redevelopment areas of Bangbae-dong, Seocho-gu, including Bangbae New Samho and Bangbae District 13, which have been considered traditional affluent neighborhoods and promising redevelopment projects in the Gangnam area of Seoul.
According to the redevelopment industry and others on the 5th, the Bangbae New Samho redevelopment association dismissed the association president and three directors on the 14th of last month, just before the general meeting to select a construction company. The emergency committee pushing for the dismissal of the association president has continuously raised issues about the opacity of the business practices of the association executives, and it has been reported that complaints have grown as there was no competitive bidding after only HDC Hyundai Development Company placed bids in two rounds of bidding for the construction company selection.
The emergency committee has opposed the acquisition of construction company status by HDC Hyundai Development Company, the preferred bidder, and has claimed the possibility of Samsung C&T participating in a competitive bid.
As the association seems to be being led by the emergency committee, some members have filed complaints with the Seocho District Office requesting that the district office carry out the association’s duties. The Seocho District Office reportedly visited the site on the 2nd to check on the progress.
With the vacancy of the association president and executives, the possibility of project delays is increasing. The association must go through procedures such as forming an election management committee and electing a new president. Initially, the association planned to hold a general meeting on the 12th of this month to select a construction company and aimed for project implementation approval in October, management approval next year, relocation, and occupancy by the end of 2030. A construction company official assessed, "It seems practically impossible to select a construction company this year."
The Bangbae New Samho redevelopment project is expected to develop 920 units in 6 buildings, with 5 basement levels and 41 above-ground floors.
Concerns about project delays are also growing for Bangbae District 13 as the association president has resigned. The district has faced delays due to claims from some members that the approval for establishing the association is invalid and compensation issues regarding religious facilities within the business sites, waiting for a court ruling. After the Supreme Court's ruling resolved legal issues, the project picked up speed again. However, as controversies over fairness arose in selecting a remediation company for contaminated soil, the project faced delays again, and the association president's sudden resignation on the 24th of last month has left it at a standstill.
The association intends to promptly announce the selection of executives and accelerate the process through construction within the year. An association official noted, "We are scheduled to hold a general meeting for executive selection on the 19th," adding, "There is an atmosphere of expectation within the association for selecting a new president and speeding up the project."
The Bangbae District 13 redevelopment project is expected to consist of apartments with a total of 2,217 units in 30 buildings, 4 basement levels and 22 above-ground floors on a site area of approximately 129,891 square meters. The construction company was initially selected as GS Engineering and Construction in 2017 to build "Bangbae Forest Xi."
Members began relocation in February 2021, but now, nearly 5 years later, they have yet to commence construction and continue to incur only financial costs. As the association president resigned, there are reports of concerns among some members that the project may face further delays.