Residents of the Apgujeong District 3 reconstruction association in Gangnam, Seoul, have submitted a joint petition to the city requesting a prompt investigation into the overall operations of their association. With approximately 4,000 members and a project budget in the billions, they are urging Seoul to verify the appropriateness of major decision-making and the use of association funds.
This news agency is currently running a special series titled '50 Years of Apgujeong Hyundai Apartments: Building a New Future' to explore key issues in the reconstruction process and the association's operations. Following this series, residents of Apgujeong District 3 have expressed their demand for a direct investigation and oversight by Seoul City. This article outlines the main issues raised by the residents based on their petition and the positions of relevant authorities, including Seoul City and Gangnam District Office.
According to the construction industry on September 22, the petitioners (association members) submitted a request for a follow-up inspection and oversight of the 'Apgujeong District 3 Housing Reconstruction Association' to Seoul City on September 14, after consulting with Gangnam District. Gangnam District has stated that it will verify the facts and take necessary administrative actions based on Seoul City's investigation and processing policies.
The petition includes nine issues: 1) the 2024 association officer election and the composition of the election management committee; 2) legal fees related to a temporary injunction against the association president's duties; 3) a contract dispute with Samjeong Accounting Corporation; 4) amendments to the bylaws made during an ongoing criminal case involving the association president; 5) the selection of a designer in 2023 and the re-application process; 6) restrictions on the eligibility of officers to run for election; 7) increased construction costs; 8) failure to conduct additional surveys; and 9) a lawsuit for damages against four members of the association.
The primary issue the petitioners want investigated is the process of selecting a designer in 2023. At that time, Seoul City reported that a design proposal submitted violated application guidelines and referred the related architectural firm to the police. Gangnam District also requested the association to reconsider the agenda for the designer selection meeting, but the association proceeded with the meeting as scheduled. Subsequently, Seoul City did not recognize the results of the meeting and demanded a re-application, leading the association to cancel the initial selection and initiate a new process.
The petitioners are asking for verification of the rationale behind holding the meeting despite the administrative body's request for reconsideration, as well as the additional costs incurred during the cancellation and re-application process, including meeting expenses, promotional costs, service fees, and legal fees.
The connection between the criminal case involving the association president and the amendments to the bylaws is also under investigation. In August 2025, prosecutors filed a summary indictment against the association president for violating urban maintenance laws, seeking a fine of 700,000 won. During the subsequent amendment process, regulations regarding the suspension of duties and disqualification of officers were relaxed, while restrictions on the eligibility of those dismissed or who resigned during their term were tightened, preventing them from running for office for three years.
The petitioners argue that it is necessary to confirm who drafted and proposed the bylaw amendments, the legal review content, and whether the criminal case involving the association president was considered during the amendment process. A summary indictment does not equate to a confirmed fine.
The calculation of construction costs is also a contentious issue. The revised maintenance plan indicated an estimated construction cost of approximately 4.2787 trillion won, but about a month later, during the contractor selection phase, Hyundai Engineering's proposed construction cost increased to approximately 5.561 trillion won. The association explained that the initial amount was an estimate and that the scope of the project expanded to include additional floor area and underground space. The petitioners are requesting an investigation into the breakdown of the 1.2823 trillion won increase and the decision-making process regarding changes in the project scope.
The lawsuit filed by the association and the association president against four members in 2026 is also included. The association is seeking 500 million won, while the president is claiming separate damages. The petitioners have stated that it is necessary to verify whether the distinction between legitimate exercise of member rights and unlawful obstruction of work was properly made, and whether the litigation costs of the association and the president were separated.
The petitioners urged, "Do not just relay the association's explanations; please directly verify the original documents such as meeting minutes, approval documents, contracts, legal reviews, and accounting materials. We request a prompt special inspection to determine whether the operations of the association have actually improved following the operational inspection by Seoul City and Gangnam District in 2023."
In response, Gangnam District stated that it would proceed with investigations and necessary administrative actions based on the results and policies of Seoul City's review. The focus is now on whether Seoul City will conduct a special inspection and the specific direction of its handling.
* This article has been translated by AI.
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