Busan Daeyeon District 3: Controversy over THE I.L’s 183.9 billion won construction cost increase and additional contributions

A dispute over a construction cost increase has arisen at THE I.L, a redevelopment complex in Daeyeon District 3, Nam-gu, Busan. The additional amount requested by the construction consortium reaches 183.9 billion won.

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According to media reports dated November 5, 2026, the differences between the association and the construction consortium have not narrowed, leading them to request construction cost verification from the Korea Real Estate Board and proceed with Busan City’s dispute mediation process.

The key concern is how this will affect the move-in schedule planned for March–April 2027 and additional contributions by association members.

THE I.L, being built in the Daeyeon-dong area of Nam-gu, Busan, is a large complex with 4488 households. The contractors are Lotte Construction and HDC Hyundai Development Company.

When considering this issue, it is important to distinguish the construction cost increase approved in 2023 from the new additional increase request raised in 2026.

Media reports said that the association’s 2023 general meeting approved adjusting construction costs to 6.385 million won per 3.3㎡. This was an increase of about 45.3% compared with the original contract amount.

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The 183.9 billion won now being discussed is not the increase approved at that time, but additional construction costs separately claimed by the construction consortium.

The association argues that an amount in the 20-billion-won range is appropriate after assessing the additional claims and deducting costs for uncompleted work. Neither side’s proposed amount has yet been finalized as a settlement.

So how much might each association member have to pay?

A simple allocation of the construction consortium’s demand, based on the reported 1755 association members, is as follows.

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183.9 billion won ÷ 1755 people = about 104.78 million won

However, this is a calculation that divides the total amount equally among the association members. It does not represent the actual additional contribution for any individual.

Actual contributions may vary depending on the construction cost verification results, general sale revenue, the project’s cost and revenue structure, the existing relocation and disposition plan, each member’s entitlement value, and the housing unit allocated.

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The impact on the total project costs could also vary significantly depending on whether the association’s claim that an amount in the 20-billion-won range is appropriate is accepted.

Therefore, it is not accurate to assume that an additional contribution of more than 100 million won per association member has been confirmed.

Several large-scale redevelopment projects have also been pursued in the Uam-dong area of Nam-gu, Busan.

Doosan We've The Zenith Ocean City in Uam District 2 has 3048 households, and move-ins began in January 2026.

Harrington Mare in Uam District 1 has 2205 households. At the time of reports in August 2026, final procedures were underway ahead of move-in.

However, no verifiable evidence was presented regarding the actual final construction cost increases at the two complexes or additional contributions by individual association members.

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Concerns about delays at nearby Gamman District 1 arose amid discussion of changes to the project method and association management issues. If the project takes longer, indirect costs such as interest on relocation loans or temporary housing expenses may also increase.

The key issues to examine in the construction cost dispute in Daeyeon District 3 are whether the additional construction costs claimed by the consortium are appropriate and whether the association is contractually obligated to pay them.

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The association opposes the practice of carrying out work without prior consultation and then claiming the costs. Meanwhile, reports say that the contractors stated they would follow the construction cost verification results, while also mentioning the possibility of restricting key handovers if residents move in before an agreement is reached.

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This does not mean that actual move-in restrictions have been imposed.

The Korea Real Estate Board’s verification results, Busan City’s dispute mediation, a final agreement between the parties, and whether the association approves it remain key factors going forward.

It is best to check the latest planned move-in date directly with the association or contractor. It has not been confirmed that move-in has been delayed because of the current construction cost dispute.

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When assessing redevelopment in Busan, it is important to consider not only the simple construction cost increase rate, but also the final approved increase and how the project costs will be funded.

Association members should review not only total construction costs but also whether the relocation and disposition plan will be amended, how additional contributions are calculated, financing costs, and the move-in schedule.

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