The construction contract for Sangdaewon District 2 in Seongnam, Gyeonggi Province, where the redevelopment association and DL E&C are disputing the construction rights, has shifted back from GS Engineering & Construction to DL E&C by a court decision. However, because this decision grants an injunction suspending the effect of the association's general meeting resolution, the final construction rights for this redevelopment project will be determined through litigation.
On the 31st, the 5th Civil Division of the Seongnam Branch of the Suwon District Court (Presiding Judge Kim Se-hyeon, senior judge) granted DL E&C's request for an injunction to suspend the effect of the resolution passed at the general meeting to dismiss the contractor for Sangdaewon District 2. The Sangdaewon District 2 redevelopment project will build 43 buildings with 29 floors above ground, totaling 4,885 households, around 3910 Sangdaewon-dong, Jungwon District, Seongnam. The total project cost is about 1 trillion won. In its decision, the court said, "Although the provisional general meeting did not meet the requirements under the debtor's articles of association, it was convened by a minority of association members who did not have convening authority," explaining the basis for granting the injunction.
This is the second time DL E&C has regained the construction rights for this site. Earlier, in 2015, the association selected DL E&C as the contractor and signed a turnkey contract applying the "e-Pyeonhansesang" brand. However, the association demanded a switch to the high-end "ACRO" brand, which led to a dispute with DL E&C.
In the end, the association decided to change the contractor and in April this year designated GS Engineering & Construction as the preferred negotiation partner. In the same month, it held a provisional general meeting and introduced agenda items to terminate the turnkey contract with DL E&C and to select GS Engineering & Construction as the new contractor. As a result of the meeting, the turnkey contract with DL E&C was terminated, but the agenda item to select GS Engineering & Construction as the new contractor failed due to a lack of quorum. DL E&C then filed for an injunction to suspend the effect of the contract termination, and on Apr. 29 it regained its status as contractor.
Afterward, on May 30, the association again held a general meeting of members and passed agenda items to terminate the contract with DL E&C and to select GS Engineering & Construction as the new contractor. At this meeting, GS Engineering & Construction was selected as the new contractor.
DL E&C then again filed for an injunction to suspend the effect of the general meeting's resolution, and the court granted it that day, returning the construction rights to DL E&C. Regarding the granting of the injunction, a DL E&C official said, "We will do our best to normalize the project."
However, separate from this injunction, the main lawsuit between DL E&C and the association over the construction rights is still ongoing, so it is unclear which construction company will ultimately secure the construction rights for this site. DL E&C filed the main lawsuit on June 18, and a hearing date has not yet been set.