(Exclusive) Desolate Junghung S Amusesquare in Gwanggyo...Unit Purchasers Say "Everything Is Due to Defective Construction"

[Suwon Ilbo=Reporter Seo Dong-young] The commercial spaces tightly arranged front and back are literally 'completely' empty with nothing in them. Only real estate rental promotion flyers are posted on the commercial space entrance doors. The passages, where people are rarely seen, have become dreary. A nearby restroom is closed due to low usage.

This is the current situation at Junghung S Class Gwanggyo Amusesquare located in Woncheon-dong, Yeongdeungpo-gu, Suwon. Located near Gwanggyo Lake Park, which was expected to be an optimal location for commercial space, the unit sales prices for commercial spaces reached 45 million won to 100 million won per pyeong (approximately 36 square meters).

The Amusesquare, consisting of approximately 610 stores total, has a large spa on the basement level 2 and a large kids cafe of approximately 1,100㎥ or 470 pyeong on basement level 1 as its anchors. The basement level 2 area with the large spa and mart has seen a fair number of commercial tenants move in.

However, the situation on basement level 1 was serious. According to unit purchasers, of the approximately 230 commercial spaces on that floor, only about 25 have completed tenancy. Moreover, roughly half of those are real estate brokerage offices.

One real estate official said, "In such a desolate place, who would run a business here? It's difficult to arrange rentals, and selling commercial space is even harder," shaking his head.

Unit purchasers raised their voices, saying the current situation arose due to false statements and defective construction by builder Junghung Construction.

Unit purchasers unanimously stated, "At the time of sales, Junghung Construction advertised that it would operate the kids cafe directly, promoting it not only through advertisements but also through countless news articles."

However, the kids cafe that Junghung Construction claimed to operate directly came in as a rental arrangement, but even that fell through. Unit purchasers claimed that when the rainy season arrived shortly after completion, water leaked from the ceiling of the kids cafe and other commercial spaces.

One unit purchaser said, "It wasn't just a simple leak. The damage was so severe that you could mistake it for a hole punched right through the ceiling," recalling the time, and added, "In the case of the kids cafe, the area directly above is a landscaping facility. It's proof that Junghung Construction did not perform proper construction." One city council member who visited the site at the time also shook his head, saying, "This was chaos like no other."

Unit purchasers formed an emergency countermeasure committee and demanded solutions from Suwon City and the Suwon City Council. In response, in September of last year, quality inspections were conducted with the participation of Suwon City officials, city council members, Junghung Construction, and unit purchasers. Junghung Construction representatives promised to address problematic areas. Related construction work has continued until recently, but unit purchasers are skeptical, saying, "We'll probably know if it was done properly when the rainy season arrives."

Meanwhile, a year has passed since the completion permit. Unit purchasers, who find it difficult to rent or sell, are burdened with monthly management fees. Some are proceeding with both civil lawsuits seeking contract termination against Junghung Construction and criminal lawsuits alleging fraud by the builder.

Unit purchasers expressed their frustration, saying, "We purchased units by borrowing money based on trust in Junghung Construction, but far from making a profit, we are suffering losses."

Junghung Construction stated, "Currently commercial space sales are at about 60%. This level is quite substantial progress one year after completion." They continued, "The claim that the kids cafe fell through due to defective construction like water leaks is not true. We are currently in discussions with another company about kids cafe entry and related construction is underway."

Regarding contract termination demands, they countered, "We did not specify confirmation of entry by large-scale facilities such as a kids cafe at the time of contract, and we did not in the contract either. We also received confirmation certificates from unit purchasers that they clearly understood the contract terms." They added, "Regarding some lawsuits with certain units, we will make our position clear after a court ruling is issued."

Regarding Junghung Construction's response, unit purchasers said, "We expected this," and stated, "We will pursue legal action not only against Junghung Construction but also against Suwon City, which granted completion permit despite the defective construction."

[Counter Report] Regarding Sales of Gwanggyo Junghung S Amusesquare

On June 23 of this year, this newspaper published an article titled "Desolate Gwanggyo Junghung S Amusesquare...Unit Purchasers Say 'Everything Is Due to Defective Construction'" on the Suwon News page, reporting on defective construction at the commercial facility Junghung S-Class Amusesquare located in Yeongdeungpo-gu, Suwon, and difficulties in renting and selling commercial spaces due to the non-operation of the kids cafe. In response, Junghung Construction Co., Ltd. informed us that after receiving use approval, it has completed defect repairs for 94% or more of the units where some defects were reported, and that lawsuits filed by purchasers of commercial space regarding non-operation of the kids cafe and defective construction are currently ongoing.

This report is made in accordance with mediation by the Press Arbitration Commission.