Juan Paragon Move-ins Blocked by Disputes Over Liens and Defects

Incheon’s Juan Central Paragon in Michuhol-gu was developed through the Michu District 1 housing redevelopment project, comprising 12 buildings with 2 underground and 40 above-ground floors, totaling 1,321 households (767 for general sale). Although initially scheduled for completion in December 2025, move-ins were delayed due to construction cost disputes, work stoppages, and a leadership void within the association. An interim use permit was obtained in May 2026, allowing residents to begin moving in.

The dispute began when the contractor, Line Construction, demanded an additional 5.61 billion won in construction costs. Line Construction cited rising material and labor costs as grounds for the increase. The association protested, arguing that price fluctuation settlements had been finalized before construction began and that such fluctuations should not be reflected afterward. Negotiations collapsed, and as the standoff persisted, construction came to a halt for approximately five months starting in the second half of 2024.

A leadership void within the association contributed to the prolongation of the dispute. In August 2025, a general assembly vote passed a motion to dismiss and suspend the association president and all executives. Since then, the association has been unable to form a legitimate representative body, leaving pending issues—such as construction cost settlements, the release of liens, claims for liquidated damages, and lawsuits from general buyers—unresolved.

Citing unpaid construction fees, Line Construction began exercising liens on association members' units. On July 27, 2026, the 21st Civil Division of the Incheon District Court dismissed an application for a preliminary injunction to prevent move-in interference filed by 232 association members. Line Construction is refusing to hand over unit keys unless members sign a document confirming payment of the additional construction costs. The document reportedly contains contents that could disadvantage the members in future lawsuits.

While the blame game continues, general buyers are burdened with loan interest and rent payments as they await move-in. Some high-rise units have faced controversy over defects, including uninstalled fall prevention facilities, broken tiles, and parking garage structural issues. As news of the conflict and defects spread, listings in the surrounding real estate market have appeared at prices lower than the initial sale prices.