Seoul City Establishes Standard for 'Maintenance Project Management Disposition' to Reduce Conflicts Among Union Members

On the 13th, demolition work for reconstruction is in full swing at Dunchon Jugong Apartment in Gangdong-gu, Seoul. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Yuri Kim] The Seoul Metropolitan Government is taking steps to establish standard criteria to ensure that the 'management disposition plan' for approval of redevelopment and reconstruction projects is formulated rationally.

The management disposition approval is a crucial process that occurs in the final stages of redevelopment projects, where the specific compensation scale and the distribution of assets among association members for buildings and land after the project, such as reconstructed apartments, are finalized. Once the management disposition approval is completed, residents begin relocation, existing buildings are demolished, and construction officially starts.

On the 5th, Seoul announced that it will establish standardized criteria for formulating management disposition plans and revise standard forms based on a comprehensive survey of 89 districts that received management disposition approval over the past three years. This is the first such effort since the enactment of the 'Urban and Residential Environment Maintenance Act' in 2003, which made the formulation of management disposition plans mandatory.

The management disposition plan is a distribution plan for land or building facilities allocated to association members after project implementation, as stipulated by the Urban Maintenance Act for redevelopment, reconstruction, and urban environment maintenance projects. Introduced alongside the 1976 'Urban Redevelopment Act,' the concept has been based on the principles of 'balanced distribution and rational use.'

Although it has been nearly 20 years since the management disposition plan became mandatory, there are no standardized criteria or specific methodologies for plan formulation. Despite the increasing diversity of maintenance project types, no criteria have been established for each type, leading to various conflicts at project sites.

For example, in reconstruction projects, there is a lack of clear standards for association members who previously owned commercial properties to receive apartments (multi-family housing) instead of commercial units, and insufficient regulations on reconstruction levies (reconstruction excess profit recovery), causing some members to oppose the project. As a result, many projects face long delays or litigation.

Additionally, the absence of criteria on how to distribute reconstruction levies among association members also triggers conflicts. Procedures for granting preemptive purchase rights to those who have occupied unauthorized housing on national or public land for extended periods or for project implementers to purchase (delegate) such properties are also inadequate.

Although maintenance types have diversified into landowner methods, project implementer methods, and others, the current draft standards for management disposition plans focus mainly on association-based maintenance projects, limiting their applicability to other types. Furthermore, changes in laws and guidelines have not been fully reflected, leading to lawsuits challenging the validity or cancellation of management disposition plans.

Seoul plans to closely examine detailed procedures from application for sale after project implementation approval to drafting and public inspection of the management disposition plan, association general meetings (consent), and approval of management disposition (changes), identifying problems and improvement measures. Standardized guidelines will be established for each maintenance project type, and practical manuals will be prepared for use by approval officials.

Seoul expects that reducing conflicts among association members at the management disposition approval stage and increasing transparency in maintenance projects will ultimately accelerate project progress.

In this regard, Seoul is conducting the 'Survey on Management Disposition Plans by Maintenance Project Type and Institutional Improvement Service,' scheduled for completion by July next year and application in the field. The main contents of the service include ▲ investigation and analysis of management disposition plan formulation and approval by project type ▲ analysis of profitability and factors affecting project costs by type ▲ preparation of legal and institutional improvement measures through case law and inquiry response analysis ▲ presentation of standardized formulation criteria and preparation of practical manuals.

Professor Seungjoo Lee of Seokyeong University’s Department of Urban Engineering, who is overseeing the project, said, "The management disposition plan is a comprehensive plan covering overall project costs and establishes cost-sharing and distribution standards among association members. We will revise the system to ensure that all asset disposal-related matters are reflected in the plan to prevent arbitrary disposal of assets." He added, "To enhance transparency in maintenance projects, we will also consider linking information disclosure on maintenance projects with computerized systems handling association budgets and administrative tasks."

Meanwhile, Seoul plans to actively discover advanced and specialized methods for maintenance projects and pursue continuous institutional improvements. It aims to reflect review opinions from related institutions and departments and lead amendments to laws and guidelines in cooperation with the Ministry of Land, Infrastructure and Transport. Seoul will hold expert advisory meetings and workshops with specialists in urban maintenance, legal affairs, tax accounting, appraisal, and local governments.

Ryu Hoon, head of the Seoul Housing and Architecture Headquarters, said, "Seoul will conduct a full-scale survey and cooperate with the Ministry of Land to establish rational standards for rights distribution related to management disposition approval." He added, "We will provide detailed explanatory materials to prevent confusion that may arise on-site and prepare consistent support measures."

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