[President Yoon Seok-yeol Elected] Revitalizing Reconstruction... Will There Be a Wave of Redevelopment in Aging Complexes?

President-elect Yoon Suk-yeol is expressing his gratitude to supporters in front of the People Power Party headquarters in Yeouido, Seoul, on the 10th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Kim Min-young] With Yoon Seok-yeol, the People Power Party candidate, elected as president, changes are expected in urban redevelopment projects such as reconstruction. During his candidacy, Yoon promised to increase housing supply by easing regulations on reconstruction and redevelopment as part of his real estate pledges. In particular, he emphasized deregulation related to the redevelopment projects of the first-generation new towns, drawing attention to whether reconstruction and other redevelopment projects will accelerate.

Yoon’s real estate pledge focuses on expanding supply. Since the recent sharp rise in housing prices is mainly attributed to supply shortages, he aims to control housing prices by increasing supply.

To this end, Yoon has announced plans to enact a special law for the first-generation new towns. The average floor area ratio (FAR) of these new towns is between 169% and 226%, and he intends to increase the FAR through land use changes or zoning upgrades to supply more than 100,000 additional households. The redevelopment pledge for new towns centers on three main points: adjusting and raising the FAR and easing regulations, redevelopment projects that also benefit tenants, and creating relocation-only complexes to manage moving demand.

Yoon has stated that apartments over 30 years old since completion will be exempt from the ‘detailed safety inspection.’ Typically, reconstruction safety inspections proceed in the order of preliminary safety inspection, first detailed safety inspection, and second detailed safety inspection. Reconstruction is only possible if the building receives a D or E grade in the second safety inspection.

Since Yoon has promised to ease regulations related to redevelopment projects, reconstruction complexes that have been on hold are expected to resume or accelerate their projects. However, despite these regulatory relaxations, obstacles such as the price ceiling system for pre-sale and the reconstruction excess profit recovery system remain, leading to criticism that existing policies alone have limitations in revitalizing private reconstruction.

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