After the reconstruction project, Seocho District will establish an advisory committee for unions that have not yet liquidated, and will send staff to the site to encourage liquidation. The concerned union has completed its occupancy under the Raemian brand, constructed by Samsung C&T, in the Gangnam area of Seoul, but has not yet been liquidated. In 2023, it held a dissolution meeting, a precursor to liquidation, but internal conflicts have prevented the liquidation from taking place. It is unprecedented for a local government to take direct action for the liquidation of a specific union.
Reconstruction and redevelopment sites typically undergo dissolution and liquidation procedures after completion and occupancy. However, some unions continue to exist for years after occupancy. This is due to various reasons, such as ongoing lawsuits or unresolved creditor-debtor relationships, leading to the maintenance of union offices and the payment of salaries to union leaders and other staff. There are 160 reconstruction and redevelopment unions in the 25 autonomous districts of Seoul that have not been liquidated even after their reconstruction projects have concluded.
According to the maintenance industry on the 31st, Seocho District is managing 13 unions that have yet to be dissolved or liquidated in three categories: 'interest,' 'caution,' and 'serious.' Those classified as serious have difficulty carrying out work or continue to maintain the union without complying with legal obligations.
Regarding the non-liquidated unions in Seocho District based on time periods, there are two unions that have not liquidated within one year after occupancy. Additionally, there are ▲ five unions in the 1-3 year category, ▲ four in the 3-5 year category, and ▲ two in the 5-10 year category that remain unliquidated.
A Seocho District official noted, "We are currently in the process of directly holding a liquidation advisory committee for one union that is considered to have serious issues." The area where Seocho District is trying to eliminate a union directly is near Gangnam Station, where Subway Line 2 and the Shinbundang Line intersect. Samsung C&T completed the reconstruction in 2018, and occupancy ended in 2020. The union held a dissolution meeting in May 2023 and resolved to dissolve, and now the next stage of liquidation committee has been established. The union continues to exist due to conflicts between the liquidation chair and committee members. Another official stated, "There is strong public sentiment regarding the dissolution of the union, which is why the district is working to liquidate it directly."
The reason for the local government taking on the task of union liquidation is that many reconstruction and redevelopment projects have unions that do not dissolve or liquidate even after project completion. According to the Seoul city government, there are 160 unions among reconstruction and redevelopment unions that have not dissolved or liquidated after the completion of their projects (18 non-dissolved and 142 non-liquidated).
Union B in Gangdong District of Seoul completed its occupancy in 2018, but it still operates the union office and pays about 5 million won per month in union leader salaries. There are two pending lawsuits involving the residents’ representative meeting and the construction company, Samsung C&T, which is why the union has not liquidated.
Attorney Kim Ye-rim from Simmok Law Firm explained, "Many maintenance project unions are experiencing delays in liquidation due to unresolved creditor-debtor relationships and ongoing lawsuits." Director Kim Je-kyung of Tumi Real Estate Consulting stated, "Often, union officials see no reason to expedite the dissolution of the union, as situations arise where lawsuits are filed or unsold commercial units prevent the resolution of settlement funds, allowing them to continue receiving salaries for several years until the issues are resolved."
Seocho District Council member Park Jae-hyung said, "It is necessary to accurately identify the internal issues occurring within unions that have not been liquidated for long periods, to provide practical assistance to union members, and to make district-level efforts to expedite the liquidation of the union."