HUG Construction Guarantee Agreement Signed... Juwoldong Cooperative Housing Project Resumes Construction

First and Only Case in HUG's History
77% Complete, Scheduled for Completion in September Next Year
Resumption Ceremony to Be Held at Construction Site on the 19th

On the 12th, a signing ceremony for the construction execution agreement and the additional agreement for construction guarantee execution took place at Congressman Jinwook Jung's office in the National Assembly Members' Office Building. Courtesy of Congressman Jinwook Jung's office.

Jinwook Jung, a lawmaker from the Democratic Party of Korea (representing Gwangju Dongnam-gap), announced on the 18th that the issue of the Gwangju Juwoldong Regional Housing Cooperative Apartment (Bongseondong Namyang Hutton Phase 3), where construction had been halted for over a year due to the construction company's application for court receivership and the exercise of lien rights by partner companies, has been resolved and that full-scale construction will now resume.

This regional housing project is the first and, to date, the only case in the history of the Housing and Urban Guarantee Corporation (hereafter HUG) in which HUG guarantees the execution of construction and directly oversees the project.

At the signing ceremony for the construction execution agreement and the additional agreement for construction guarantee execution, held on the 12th at Jinwook Jung's office, Namgyu Yoon, acting president of HUG; Yonguk Joo, head of the Gwangju Juwoldong Regional Housing Cooperative (hereafter Juwoldong Cooperative); and Insoo Jung, vice president of Namyang Construction Co., Ltd., were present.

The signing of this additional agreement for construction guarantee execution marks the official restart of reconstruction for the Juwoldong Cooperative Apartment, located next to Gwangju Nam-gu District Office, which had been left idle for one year and three months due to the construction halt. With the apartment currently 77% complete, construction is set to resume on the 19th, and the project is expected to be finished around September next year.

Assemblyman Jung explained, "There were many twists and turns before the Juwoldong Cooperative Apartment could enter reconstruction. If HUG had refused to guarantee the cooperative's construction execution last December and instead followed the usual practice of simply paying damages, the completion date of the apartment would have been uncertain. Cooperative members faced the risk of significant financial losses due to immediate expenses such as contract deposits and interest on interim loans."

He continued, "Since March, I developed a strategy to resolve this issue, and through active mediation and persuading HUG, I was able to pave the way for the construction execution guarantee. While this method best aligns with HUG's original founding purpose, it had never been implemented since HUG's establishment. The signing of the construction execution agreement for the Juwoldong Cooperative Apartment project is significant as it stands as the first and only case of its kind."

He added, "Even when there was a tense standoff among the cooperative, HUG, and the lending financial institutions over HUG's 100% guarantee for additional interim loans until last month, I persuaded the Minister of Land, Infrastructure and Transport and HUG, ultimately leading to the signing of this construction execution agreement and the additional agreement for construction guarantee execution. I hope that this additional agreement will serve as a new starting point, allowing the Juwoldong Cooperative Housing Project to be completed smoothly and contribute to housing stability for citizens."

Meanwhile, the Juwoldong Cooperative Housing Project will hold a resumption ceremony in front of the Bongseondong Namyang Hutton Phase 3 construction site at 3 p.m. on the 19th, and construction is scheduled to resume thereafter.

This content was produced with the assistance of AI translation services.