Seoul-Style Remodeling Going Nowhere... Zero Safety Inspections for 2 Years

Selected 7 Pilot Complexes in 2018 but Only 1 Union Established
Core of Seoul-style Remodeling is Support for 1st Safety Inspection Costs
Munjeong Siyeong Likely to Soon Apply for 1st Safety Inspection Subsidy
Others Fail to Secure Resident Consent Due to Shared Costs and Sale Price Ceiling System

[Asia Economy Reporter Onyu Lim] The 'Seoul-type Remodeling' project, promoted by the Seoul Metropolitan Government as an alternative to reconstruct aging mid-rise apartments, has been stalled for nearly two years. Among the seven pilot complexes designated, none have undergone safety inspections, and six complexes have yet to secure the resident consent rate required to establish associations due to various regulations and contribution fee issues.

According to the urban maintenance industry on the 24th, none of the seven Seoul-type Remodeling pilot complexes selected in June 2018 have received substantial support from the Seoul Metropolitan Government during the project implementation process. At that time, Seoul designated Namsan Town in Sinjeong-dong, Jung-gu; Woosung 1st, 2nd, and 3rd complexes in Sindorim-dong, Guro-gu; Siyoung and Geonyeong in Munjeong-dong, Songpa-gu; and Woosung 2nd in Gildong, Gangdong-gu as pilot complexes and promised to support the costs of the first safety inspection. Seoul declared at the time, "We will curb the aging of apartment complexes by revitalizing remodeling of multi-family housing."

The fastest progressing project is Siyoung in Munjeong-dong. Residents of this apartment are expected to soon apply to Seoul for the cost of the first safety inspection. Siyoung Munjeong, the only pilot complex that succeeded in establishing an association last August, recently applied for the first safety inspection at Songpa District Office. Hwang Sun-young, head of the Siyoung Munjeong Remodeling Association, said, "We plan to decide whether to apply for support for the first safety inspection cost through this week's delegates' meeting," adding, "The conditions set by Seoul are unlikely to significantly hinder the project's feasibility, so approval is highly probable."

However, the other pilot complexes have not even applied to establish associations. To establish an association for remodeling, more than two-thirds of the owners must consent. Unlike Siyoung Munjeong, which chose horizontal and annex expansions, these complexes want vertical expansions by increasing the number of floors, making the project more uncertain. The biggest obstacle is the contribution fee. An owner of Namsan Town in Sinjeong-dong said, "A contribution fee of about 100 million KRW per household is expected, but there are units whose area will not increase, causing divided opinions among residents," adding, "Some think individual remodeling would be better."

Another issue is that the Ministry of Land, Infrastructure and Transport postponed the decision on whether to allow the demolition of load-bearing walls from March last year to this year, increasing the uncertainty of contribution fees. Load-bearing walls support the building's weight, and complexes pursuing vertical expansion remodeling have requested relaxation of regulations on demolishing load-bearing walls between units to allow various floor plan configurations. The price ceiling system for pre-sale is also a hurdle. For Namsan Town, Munjeong Geonyeong, and Woosung 2nd, if the number of households increases by more than 30 through remodeling, the price ceiling system applies when setting general pre-sale prices under the Housing Act. A maintenance industry official pointed out, "In remodeling projects where the increase in the number of units is not significant, profits from general pre-sales are insufficient even to cover construction costs," adding, "The price ceiling system is hindering the revitalization of remodeling."

Despite the slow progress of Seoul-type Remodeling pilot complexes due to various obstacles, the Seoul Metropolitan Government responds that there are no suitable measures to support at the city level before association establishment. Moreover, the Seoul city remodeling guidelines, which evoke the image of donation and surrender, are also criticized for burdening the pilot complexes. The guidelines, to be finalized in the first half of the year, include standards for 'public contributions such as local shared facilities,' requiring remodeling complexes to share community facilities or parking lots with local residents.

A remodeling promotion committee official said, "Seoul is trying to create various remodeling standards through pilot complexes, which is slowing down project progress," adding, "For remodeling, which is still in its early stages, to settle, it is necessary to reduce the burden of the guidelines and allow flexible operation."

This content was produced with the assistance of AI translation services.