SH Corporation's Long-term Jeonse Market Value of 32 Trillion Won... 4.3 Times the Acquisition Cost

SH Corporation, First Public Disclosure of Owned Assets Including Housing, Buildings, and Land

[Asia Economy Reporter Kim Hyemin] The market value of long-term lease housing owned by Seoul Housing and Communities Corporation (SH Corporation) has been revealed to exceed 32 trillion won, which is 4.3 times the acquisition cost.

On the 7th, SH Corporation fully disclosed its assets on its website. This is the first time a domestic public corporation has revealed its assets including housing, buildings, and land.

The disclosed data includes acquisition cost, book value, and publicly announced price of 28,282 long-term lease housing units. Long-term lease housing is a public housing system introduced by Seoul Mayor Oh Se-hoon in 2007 under the name "SHIFT." It allows residents to live for up to 20 years with a deposit of 50-80% of the surrounding market price. SH Corporation supplied a total of 33,000 units by last year, and this disclosure covers assets subject to property tax.

The acquisition cost of long-term lease housing owned by SH Corporation was 3.3234 trillion won for land and 4.1156 trillion won for buildings, totaling 7.439 trillion won. The average acquisition cost per unit was 260 million won. The market value was approximately 32.1067 trillion won, 4.3 times the acquisition cost. The market value was based on the most recent transaction date (September 1 of last year) in the relevant project area.

The book value was 3.3141 trillion won for land and 2.9153 trillion won for buildings, totaling 6.2293 trillion won (an average of 220 million won per unit). The publicly announced price was about 16.5041 trillion won for land and buildings combined (an average of 580 million won per unit).

SH Corporation plans to sequentially disclose asset details for housing, commercial buildings, and land in the future. The assets subject to disclosure include approximately 130,000 housing and building units and about 10,000 land parcels owned by SH Corporation that are subject to property tax. Along with asset disclosure, changes in asset values reflecting the publicly announced prices will be transparently disclosed every December.

Kim Heondong, President of SH Corporation, said, "Along with the monthly disclosure of sales cost details since last December, we will disclose SH Corporation's assets to fulfill citizens' right to know," adding, "We will secure transparency and reliability in the corporation's management."

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