Changwon Mayor Heo Seong-mu Resolves Gyeongnam's First Defaulted Rental Housing Issue

Held Agreement Ceremony for Purchase of Defaulted Rental Housing with Ministry of Land, Infrastructure and Transport

[Asia Economy Yeongnam Reporting Headquarters Reporter Saeyan Park] Changwon City in Gyeongnam held a signing ceremony for the purchase project of the defaulted rental housing at Joyang Highville in Changwon City together with Minister Noh Hyung-wook of the Ministry of Land, Infrastructure and Transport and President Kim Hyung-jun of LH Corporation at the Government Sejong Complex.

The city visited local lawmakers and related organizations to request organic cooperation to protect tenants' deposits when Joyang Highville, a defaulted rental housing in Naeseo-eup, Masanhwoewon-gu, faced a crisis in August 2018 where 52 households could not recover rental deposits worth 3.3 billion KRW due to the default of the rental business operator.

In particular, the city continuously urged LH to purchase the defaulted rental housing, and this agreement has borne fruit after more than two years.

The main contents of the agreement are financial (fund) support and adjustment/mediation for the purchase of defaulted rental housing by the Ministry of Land, Infrastructure and Transport, purchase, repair, and conversion to public rental housing by LH, and Changwon City sharing the housing repair costs for five years after LH purchases the defaulted rental housing.

After the signing ceremony, the Minister of Land, Infrastructure and Transport will designate and announce Joyang Highville (52 households) as the target defaulted rental housing for purchase.

Afterward, following the auction procedure, once LH Corporation completes the purchase of the defaulted rental housing, the tenants will be able to recover their deposits. The city will support repair costs for the rental housing for five years.

Mayor Heo Seong-mu stated, "Once the long-unresolved defaulted rental housing purchase project is completed, tenants will be able to recover their jeonse deposits and live in stable housing, and the relevant apartment complex will be reborn as high-quality public rental housing rather than defaulted rental housing."

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