Seoul Accelerates Reconstruction of Aged Rental Housing... Promotes Legalization of Using Small Housing in Redevelopment Projects During Relocation

"Reviewing Legislation for Utilizing Small Housing in Redevelopment Projects as Resettlement Housing"

[Asia Economy Reporter Yuri Kim] As a relocation measure for the reconstruction of aging rental apartments in Seoul, a plan to legalize the use of small housing units from redevelopment projects is being considered.

Kim Seyong, President of Seoul Housing and Communities Corporation (SH Corporation), stated at a forum on "Public Housing Supply Plans through Public-Led Development" held at the National Assembly on the 15th, "There are concerns that securing relocation housing during the redevelopment of aging rental complexes may be difficult, potentially prolonging the project," and added, "We will consider legalizing the use of small housing units (exclusive area of 60㎡ or less) secured through redevelopment projects." This would involve creating explicit provisions in the Long-term Public Rental Housing Residents' Quality of Life Improvement Act to allow the use of small housing units from redevelopment projects as relocation housing. Regarding this, SH Corporation said, "We plan to finalize this through sufficient consultations with local governments, related organizations, and residents in the future."

Seoul City and SH Corporation have been reviewing the reconstruction of aging rental housing as part of Seoul's housing supply plan since last fall. The plan is to sequentially reconstruct rental complexes over 30 years old in Seoul and supply up to 23,000 additional units over the next 20 years. Currently, there are 2 rental complexes with 810 units in Seoul that are over 30 years old, and in 5 years, this will increase to 22 complexes with 31,316 units. In 15 years, the target will expand to 34 complexes with 39,802 units. President Kim said, "If the floor area ratio of these complexes is raised to 400%, 18,389 units will be additionally supplied, and if raised to 500%, 22,969 units will be added," adding, "We will change the negative perception of rental complexes through age mix, social mix, and the creation of complex living infrastructure."

The project will begin with the Nowon-gu Hagye 5 Complex, which has already reached 30 years of age. This complex is expected to be reborn from the existing 640 units to 1,640 units through zoning upgrades. President Kim said, "Starting with Hagye 5 Complex, we will proceed with the redevelopment of aging rental complexes in areas such as Banghwa and Gayang living zones," and added, "For Hagye 5 Complex, we will conduct an international design competition, create relocation housing, relocate existing residents, and use a circular development strategy for adjacent areas including the new construction of Hagye 5 Complex."

Industry insiders have expressed concerns regarding project costs and relocation measures related to the reconstruction of aging rental apartments. As a supplementary measure, the plan to legalize the use of small housing units secured through redevelopment projects is being considered. The formalization of excluding new investment projects from feasibility reviews is also being promoted. Despite being a policy project under Article 65-3 of the Local Public Enterprises Act, there is a possibility that mandatory feasibility reviews may cause missed policy timing or difficulties in securing project viability, making project promotion challenging. SH Corporation stated, "We hope that the Long-term Public Rental Housing Residents' Quality of Life Improvement Act will explicitly define 'redevelopment projects' as projects stipulated by law to exempt them from investment feasibility reviews." If formalization is difficult, they plan to propose reflecting "Aging Public Rental Redevelopment" as a policy project decided by the Cabinet meeting.

Legislative considerations are also needed to allow existing tenants to resettle at the same rental fee level. To this end, a separate clause should be established in Article 5 (State Support for Rent) of the Long-term Public Rental Housing Residents' Quality of Life Improvement Act to explicitly mandate state subsidies in the case of redevelopment. Although subsidies paid during the process of reconstructing aging rental housing with a 50-year mandatory rental period after 30 years need to be settled, the subsidy management law does not currently specify the settlement method, so this should also be established.

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