During the trial of Cho Seok-rae and Cho Hyun-joon, a small and medium-sized contractor filed a complaint against Hyosung Heavy Industries.

Fraud, overuse of power, unauthorized occupation of the hotel in Hyosung surrounding the Herrington Residence! Give me the construction cost vs. The exercise of lien...

General Reportor Park Cheol-S | 기사입력 2020/07/08 [14:27]

During the trial of Cho Seok-rae and Cho Hyun-joon, a small and medium-sized contractor filed a complaint against Hyosung Heavy Industries.

Fraud, overuse of power, unauthorized occupation of the hotel in Hyosung surrounding the Herrington Residence! Give me the construction cost vs. The exercise of lien...

General Reportor Park Cheol-S | 입력 : 2020/07/08 [14:27]

[The Eyes of Park Cheol-seong's General Reportor]

 

◈ During the trial of Cho Seok-rae and Cho Hyun-joon, a small and medium-sized contractor filed a complaint against Hyosung Heavy Industries.

 

◈ Fraud, overuse of power, unauthorized occupation of the hotel in Hyosung surrounding the Herrington Residence! Give me the construction cost vs. The exercise of lien...

 

◈ Sim In-heung of Woori Nara Co., Ltd. said, "The selection of a joint construction project for Hyosung affiliates and promotion companies is also problematic."

 

<Park Cheol-Seong, Director of Research Center, Columnist>

 

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On the 6th, officials from hydrants and interior companies held a protest against Hyosung Heavy Industries at Herrington Residence Metapolis in Hwaseong, Gyeonggi Province. They say that Hyosung Heavy Industries delayed the opening of the hotel by illegally occupying the first basement floor of the hotel and obstructing interior construction and unsold goods trading. The protest picket included calls for a thorough investigation into fraud of construction costs and unfair support of affiliates.

 

Hyosung Heavy Industries (CEO Kim Dong-woo), an affiliate of Hyosung Group, has been sued by Korea, a small and medium-sized developer. They are engaged in a heated legal battle.

 

It has also been alleged that hundreds of people are suffering from a dispute over construction costs between Hyosung Heavy Industries, the contractor of Dongtan Herrington Residence in Hwaseong, Gyeonggi Province, and Korea, the developer.

 

The public's view of Hyosung is never good.

 

They are Cho Seok-rae, 85, honorary chairman of Hyosung Group, and his son Cho Hyun-joon, 52, who were accused of paying for legal advice on criminal cases that he is a suspect with company money.

 

A trial accused of embezzlement is still underway, and owner risks caused by conflicts with his younger brother, former president Cho Hyun-moon, have not been extinguished.

 

Hyosung's operating profit in the first quarter of this year was 12.5 billion won, down 70 percent from a year earlier. Another challenge is how to overcome the pandemic situation caused by Corona 19.

 

On top of that, the issue has been added. It is predicted that the impact on public opinion will be great.

 

More than 100 people, including those who sold Herrington Residence in Hwaseong, Gyeonggi Province, and those who sold stores and rented houses, held a protest rally in the lobby on the first floor of the hotel.

 

They urged the government to "immediately stop illegal activities such as abusing power by Hyosung's side and occupying the hotel without permission."

 

▲     ©박철성 대기자

On March 14, Woori filed a complaint with the Seoul Central District Prosecutors' Office against the builder, Hyosung Heavy Industries Co., for fraud and other charges.

 

In particular, Korea filed a complaint with the Seoul Central District Prosecutors' Office on March 14 on charges of fraud and other charges against the builder, Hyosung Heavy Industries. "Hyoseong Heavy Industries Co., Ltd. has swindled construction costs," Korea said.

 

Shim In-heung, chairman of Woori Nara co, said, "On the day of the contract, Hyosung brought a construction contract worth 5.7 million won per pyeong and rejected it." "Then, we signed the contract because this contract is for PF loans and we will finalize the construction cost on that basis when the actual design drawings come out." He said that a Korean executive printed a contract seal thinking that a large company would lie.

 

According to an official from Korea, "In July of the same year, the two companies prepared an agreement that said that the construction cost would be set based on the implementation design, and this content would take precedence over the construction contract." Chairman Shim explained, "On September 1, two months later, we asked for the preparation and submission of the construction cost details, but Hyosung has not given us the contract details until the completion."

 

As a result, Korea has also stopped paying the bills.

 

"At first, we settled below the 5 million won standard per pyeong, and Hyosung also took it," Shim said. "But as we continued to claim 5.7 million won, which is false, we stopped paying for Hyosung by informing trust companies of this information."

 

In response, Hyosung consistently gave no comment to reporters' questions. .

 

However, according to some media reports, Hyosung Heavy Industries said, "The 5 million won proposal proposed in the initial business proposal is missing the closing specifications such as interior design," adding, "In the future, the implementer presented related details and delivered the additional cost claim to the implementer, and eventually signed the contract with a unit price of 5.7 million won."

 

According to a media report, "We agreed to calculate the construction cost through the implementation design after that, but as a result of the actual confirmation, we asked the implementer to confirm the deadline as additional construction costs were expected, and later claimed that the implementer stuck to the original amount and that it was not negotiated."

 

Also, Hyosung Heavy Industries said, "At the time, the contract was for PF loans and we never promised to make a commitment."There was no reason to confirm and proceed with construction costs for PF loans to financial companies because the project is not a project to secure construction costs under financial techniques," he was quoted as saying.

 

Shim is also taking issue with the selection of Hyosung affiliates and promotion companies as joint construction projects.

 

"On the day of the contract, Hyosung Heavy Industries brought a contract, including Jinheung Company, which had been suspended from trading stocks without prior consultation," he said. "We have filed a complaint against the company for breach of trust and are investigating it by the prosecution."

 

The promotion company recorded a net loss of 75.2 billion won in 2016, but Hyosung Heavy Industries secured 34.8 billion won by inserting it into a contract. Promotion companies have been relieved of their suspension of trading due to the project.

 

However, some media reported that Hyosung initially refuted the claim, saying that it had considered joint construction even before participating in the project.

 

Meanwhile, Hyosung Heavy Industries has also filed a lawsuit against Korea to pay for the construction. Hyosung Heavy Industries claims that it did not receive 42.5 billion won out of 69.5 billion won in construction costs based on 5.7 million won per pyeong. For this reason, Hyosung Heavy Industries has occupied a part of the building and started exercising its right to host the building.

 

However, Chairman Shim said, "It is clearly illegal."

 

"Currently, last-minute construction such as interior design is in full swing," Chairman Shim said. "But Hyosung Heavy Industries is hiring outside companies and illegally occupying the hotel's opening schedule is being delayed."

 

"There is a series of serious property damage, including complaints from the owners and tenants of the affected stores," he said. "This is clearly a big company's abuse of power."

 

Meanwhile, Hyosung Heavy Industries said in some media outlets that it has never illegally occupied a building without permission, adding, "Hyoseong Heavy Industries is managing buildings such as defect repairs before moving in, and its implementers are hindering such work."

 

pcseong@naver.com

 

 

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