Seongnam Bank Owners' Association appoints Daeryun Law Firm... Enters into litigation with GS and HDC

Last year, the contract with the GS E&C and HDC Hyeonsan consortium was cancelled.
Daeryun forms a 7-person dedicated team... “We will prove that the other party is at fault.”

The Seongnam Bank Jugong Apartment Reconstruction Association, which had been in a legal conflict with the existing construction company, selected a legal representative and began a full-scale lawsuit.

Daeryun Law Firm announced on the 27th that the Bank Construction Reconstruction Association held a delegates' meeting for the construction company's lawsuit on the 21st and appointed Daeryun as its legal representative.

Previously, the union terminated the contract with the existing construction company, GS Engineering & Construction and HDC Hyundai Development Company Consortium, in April last year. They were selected as construction companies in 2019, but it was later confirmed that they were unable to narrow the difference between their positions on construction costs with the union.

Accordingly, the construction group requested the union to return the bidding deposit of approximately 27.2 billion won and compensation for approximately 27.3 billion won in profits expected to be earned upon completion of construction.

After reviewing proposals received from multiple law firms, the union finally selected Daeryun as its legal representative.

Daeryun plans to form a seven-member dedicated team to respond. First, Park Jeong-gyu, head of the Construction and Real Estate Group, who previously served as a judge in the construction division, will be led by attorneys Kim Gwang-deok and Kim Hyeong-jin, both former members of large construction companies.

In addition, various experts, including Seon Yu-ju, a lawyer specializing in redevelopment and reconstruction registered with the Korean Bar Association, Dae-hee Kang and Young-sik Shin, real estate lawyers, and Young-jae Nam, a former in-house lawyer at a POSCO Group affiliate, are also providing legal assistance.

Attorney Daeryun Park Jeong-gyu, who represented the union, said, “The issue at issue in this lawsuit is to examine whether the cause of the cancellation of the construction contract was on the construction team or the union.”

He added, "We will highlight the fact that the construction group did not properly carry out the contents of the original contract and increased the construction cost beyond a reasonable range, and will prove that the union was not at fault for canceling the contract."

Reporter Hwang Jun-ik (plusik@tf.co.kr)

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