One-Stop Solution for Construction Cost Disputes... Seoul's "Construction Cost 120 Center"

Key initiatives of the Urban Subcommittee on Housing Stability under the 9th Popularly Elected Administration’s G3 Agenda
Integrating and Coordinating Construction Cost Dispute Support Across the City, District Offices, and SH

The Seoul Metropolitan Government announced on the 21st that it will operate the “Construction Cost 120 Center” to prevent disputes over construction costs in redevelopment and reconstruction projects and support their swift resolution.

Seoul City Hall CI. The Asia Business Daily DB.

The “Construction Cost 120 Center” is an integrated support desk that provides consultations on construction cost-related matters in one place, from contractor selection and construction contracts to cost increases and verification, dispute resolution and mediation, and follow-up management. It connects support services previously spread across the Seoul Metropolitan Government, district offices, and Seoul Housing & Communities Corporation (SH), providing one-stop support from the initial stages of a dispute through to an agreement.

Until now, the Seoul Metropolitan Government has addressed construction cost disputes through measures including a prior notification system for requests to increase construction costs, ongoing monitoring, pre-contract consulting and construction cost verification by SH, and the dispatch of dispute resolution coordinators. However, requests for mediation or arbitration often come only after talks between associations and contractors have dragged on, and the support programs have been spread across different agencies, limiting how quickly they can be coordinated.

The “Construction Cost 120 Center” will be located on the seventh floor of the Seoul Metropolitan Government’s Seosomun Annex 2 and will operate from 1 p.m. to 5 p.m. on weekdays. People involved in urban renewal projects, including redevelopment and reconstruction associations, promotion committees, association members, and landowners and other rights holders, can receive free consultations. The center will operate a pool of 33 professional consultants, including 15 lawyers, seven urban renewal experts, and 11 urban administration experts.

The city plans to run the “Construction Cost 120 Center” on a trial basis through December 2026, analyze the main types of consultations and demand for its services, and refine its staffing and operating methods before launching full operations in January 2027. It will analyze consultation topics and key issues to identify recurring types of construction cost disputes and early warning signs, and use the findings to improve the consultation system and provide on-site support.

Myung Nojun, head of the Seoul Metropolitan Government’s Housing Office, said, “Construction cost disputes can lead to project delays and increased burdens on association members, so it is important to respond proactively. The Construction Cost 120 Center will be the first point of contact for construction cost disputes and will provide support through to their resolution, establishing a seamless, one-stop support system from contractor selection to dispute resolution.”

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