[Exclusive] Gangnam-gu's 'No.1' Vertical Extension Remodeling Released... Daechi 1st Hyundai Project Plan Approved

'No. 1' Songpa Seongji Followed by 'No. 2' in Gangnam
Complex Transformed from 120 to 138 Households
Resident Relocation Planned for Mid-Next Year

Daechi 1st Hyundai Apartment Remodeling Bird's-eye View Photo by Asia Economy DB

The second apartment to undergo ‘vertical extension’ remodeling, which increases the number of floors in existing apartments, has emerged in Gangnam-gu. The protagonist is Daechi 1st Hyundai Apartment in Daechi-dong, Gangnam-gu, Seoul.

According to the maintenance industry on the 27th, it has been confirmed that the remodeling association of Daechi 1st Hyundai Apartment in Daechi-dong has approved the vertical extension project plan. Although many apartments have pursued vertical extension mainly in the Gangnam area, this complex is the second to have its project plan approved, following Seongji Apartment in Songpa-dong, Songpa-gu.

This apartment complex, completed in 1990, consists of 120 households. With the approval of this project plan, Daechi 1st Hyundai will be transformed into an 18-story apartment by adding 3 floors to the existing 15 floors through remodeling. The number of households will also increase by 18 to a total of 138 through the extension. The existing one-floor underground parking lot will also be expanded to three floors through remodeling. Construction will be undertaken by HDC Hyundai Development Company.

Daechi 1st Hyundai began full-scale project promotion in August 2017 after the revision of the Housing Act in 2014 allowed vertical extension. Vertical extension remodeling, which adds 2 to 3 floors to each building in the complex, proceeds in the order of ‘association establishment → safety diagnosis → architectural review → project plan approval (remodeling permit) and first safety review → second safety review → relocation and demolition → construction start.’ Although the project speed is slower compared to horizontal extension remodeling, which does not require first and second safety reviews, it is evaluated to have higher profitability.

Vertical extension remodeling increases the number of floors of existing apartments. According to the current Housing Act, buildings under 15 floors can add up to 2 floors, and those with 15 floors or more can add up to 3 floors. The additional housing units created through remodeling can be sold to the public to cover project costs, making it more profitable than horizontal extension. For this reason, it has been attracting attention as a new business alternative in aging mid-rise apartment complexes where reconstruction is difficult.

In particular, the passing of the second safety review for Daechi 1st Hyundai Apartment is gaining more attention as it is the first apartment completed with pile foundations to pass. In the case of Seongji Apartment in Songpa-dong, which was noted as the first vertical extension apartment, the foundation was built on bedrock close to the surface, so the process was different from Daechi 1st Hyundai. Since most apartment complexes built on pile foundations have faced difficulties in proceeding with vertical extension, this is expected to have a positive impact on other remodeling promotion complexes.

In fact, apart from Seongji Apartment and Daechi 1st Hyundai, vertical extension projects are rarely successful. Projects are underway in Daechung, Gaepo-dong, Gangnam-gu; Hanshin Royal in Jamwon-dong, Seocho-gu; and Maehwa Village 1 Complex in Bundang New Town, Gyeonggi Province, but strict safety standards and procedures have been obstacles. These complexes are struggling to speed up projects due to complicated procedures including first and second safety reviews and first and second safety diagnoses.

Kim Chi-bung, head of the Daechi 1st Hyundai Apartment association, said, “After signing the main contract with the construction company, the general meeting to finalize the contribution fee, relocation, second safety diagnosis, and construction will proceed sequentially,” adding, “We plan to relocate around mid-next year.”

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