Establishment of Compensation Payment Standards for Building Owners in Case of Forced Demolition of Neglected Buildings

[Image source=Yonhap News]

The government has established compensation standards for property owners affected by the ex officio demolition of abandoned buildings. Additionally, housing construction standards will be relaxed when remodeling abandoned buildings.

The Ministry of Land, Infrastructure and Transport announced on the 15th that, as a follow-up measure to the amendment of the Abandoned Buildings Maintenance Act, which will take effect in March next year, a draft revision of subordinate statutes will be open for public comment for 40 days from the 16th until January 25 of next year.

First, according to the amended law, when mayors, county governors, or district heads ex officio demolish abandoned buildings with high risks of collapse or fire, compensation for damages will be provided to guarantee the property rights of the building owners. Accordingly, the compensation amount paid to the building owner will be calculated by subtracting the demolition costs from the appraised value of the abandoned building based on the date of the ex officio demolition notice.

Also, when the Korea Land and Housing Corporation (LH) or local public corporations, entrusted or delegated by local governments to carry out maintenance projects, intend to renovate abandoned buildings into apartment complexes, they will be granted special exceptions to housing construction standards applied to apartment remodeling, allowing the use of existing abandoned buildings without demolition.

Furthermore, although the Minister of Land, Infrastructure and Transport is currently required to consult with building owners when establishing a lead project plan to promote the maintenance of abandoned buildings, there was no separate procedure for minor changes to the project plan. Going forward, mayors, county governors, and district heads will be included as consultation parties when establishing lead project plans, and consultation procedures with building owners may be omitted for minor changes to the project plan.

Um Jeong-hee, Director of Building Policy at the Ministry of Land, Infrastructure and Transport, stated, "Through the law to be enforced in March next year and this revision of subordinate statutes, it is expected that abandoned buildings with halted construction will be promptly maintained, contributing to the improvement of local aesthetics and ensuring safety." The draft revision of subordinate statutes will be publicly announced for 40 days, followed by consultations with related ministries and review by the Ministry of Government Legislation, and is scheduled to be promulgated and enforced on March 17 next year.

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