The reconstruction project for the Olympic Athletes' and Press Village Apartment, a large redevelopment complex in Songpa District, Seoul, is in turmoil over a dispute about service fees for the management firm. During the selection of the specialized management company for the redevelopment project, concerns were raised that the contract unit price was excessively high, leading to a resolution to dismiss the Chairperson of the promotion committee and to legal wrangling. There is speculation that delays are unavoidable for the timetable to establish the association, which the promotion committee had targeted.
As of the 7th, according to the redevelopment industry, former promotion committee Chairperson Yu Sang-geun of the Olympic Athletes' and Press Village Apartment is currently suspended from duties. At the promotion committee meeting held on the 25th, among 111 members on the roll, 88 were present; excluding the auditors, 86 had effective voting rights, and the motion to dismiss and suspend the Chairperson passed with 85 in favor (98.8%), 0 against, and 1 abstention. Former Chairperson Yu said the dismissal is hard to recognize as effective because he has not officially received the related documents. The promotion committee, however, considers the resolution effective immediately upon passage.
The conflict began with the service unit price of Company A, which was selected as the specialized management company for the redevelopment project. Company A reportedly bid 1,750 won per square meter. Some residents argued that this amount is 2.5 times higher than the expense proposed for Olympic Family Town, another large redevelopment complex in Songpa District.
One owner said, "Even though it is an extra-large complex with more than 5,500 households, only four companies participated in the bidding, and one company proposed 5,300 won per square meter," and added, "Some residents questioned whether there was a problem in the bidding process because Company A's proposed price was at a midpoint between the highest and the lowest." These concerns led to an audit request.
As the dismissal discussion gained momentum, former Chairperson Yu responded through a YouTube video. Yu claimed that attorney An Gwang-sun of law firm Hyeon, which provided legal advice, raised the contract issue with the management company following the audit request and that there could be a conflict of interest with the company that ranked second in the bidding. Former Chairperson Yu has filed a disciplinary complaint with the Seoul Bar Association against attorney An.
Attorney An's side disputes former Chairperson Yu's claims. An said he only offered an opinion that a price renegotiation was needed rather than terminating the contract, and he filed a defamation complaint against former Chairperson Yu. According to the promotion committee minutes, An said, "From a legal perspective, invalidating a company properly selected at a general meeting requires a cautious procedural approach," and added, "If we start over from the bid notice and go through a general meeting to select a new company, the residents' general meeting expense alone could reach hundreds of millions of won." In light of this, it was clear that he did not advocate a rebid to select the second-place company, but sought to negotiate the price with the selected company.
With legal battles and internal conflict continuing, the timeline to establish the association is increasingly likely to be delayed. One owner said, "Under current internal rules, the oldest member is serving as acting officer, but there is no clear candidate for a new Chairperson," and added, "Residents are divided over the legality of the management company selection process and the need to dismiss the Chairperson."
The Olympic Athletes' and Press Village Apartment is a complex of 5,540 households built as accommodations for athletes and the press during the 1988 Seoul Olympics. Along with Olympic Family Town and the Asian Athletes' Village, it is considered one of Songpa District's so-called "three major Olympic reconstructions." The complex is currently pursuing reconstruction under the rapid integrated planning advisory method, and a plan is under review to transform it into an extra-large complex of around 9,200 households with up to 45 to 49 floors.