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DL E&C headquarters building. (Photo = DL E&C) |
[Alpha Biz= Paul Lee] DL E&C disclosed on April 13 that it had been notified of the termination of its construction contract by the redevelopment association for the Sangdaewon District 2 project in Seongnam, Gyeonggi Province.
The termination amount stands at approximately KRW 984.9 billion (excluding VAT), representing 13.3% of the company’s revenue as of the end of last year.
DL E&C stated that it had completed all preparations required for project commencement and plans to pursue legal action, including measures to confirm its status as the contractor.
The Sangdaewon District 2 project is a large-scale redevelopment initiative covering the area around 3910 Sangdaewon-dong, set to be transformed into a major apartment complex comprising 43 buildings of up to 29 stories and a total of 4,885 housing units.
DL E&C originally secured the project in 2015, during its time as Daelim Industrial, and signed a formal construction contract with the association in 2021.
However, the project has faced repeated disruptions due to disputes over rising construction costs and brand changes, compounded by allegations of bribery involving the association’s leadership and physical clashes at the construction site.
The redevelopment association approved the contract termination at a general meeting held on April 11 at a training center in Yongin. A subsequent proposal to appoint GS Engineering & Construction as the new contractor failed to pass due to insufficient attendance by association members.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
