Seoul City to Take Action Against Redevelopment and Reconstruction Associations Delaying Dissolution Despite Completion

Seoul City is beginning to manage maintenance project associations that continue to operate without dissolution or liquidation despite the completion of construction and other maintenance projects.

Seoul City announced on the 13th that, following the promulgation of the amendment to the 「Urban and Residential Environment Maintenance Ordinance」 on the 24th, it will conduct a semi-annual comprehensive survey targeting associations that have passed one year after project completion, and actively manage their operational status regarding dissolution (liquidation) plans.

Seoul City explained, "Although associations are required to liquidate remaining funds and return them to members and dissolve after the completion of maintenance projects, there have been cases where associations did not dissolve, spent association profits, or deliberately delayed dissolution causing harm to members. We have decided to actively respond to prevent such cases by using the ordinance amendment as an opportunity."

Until now, associations entering the dissolution and liquidation phase were subject to the Civil Act rather than the 「Urban and Residential Environment Maintenance Act」, so the city and autonomous districts could not administratively manage or supervise them, resulting in limitations where punishment or regulation was impossible even if dissolution (liquidation) was delayed.

With the amendment of the 「Urban and Residential Environment Maintenance Ordinance」, association heads are now required to submit 'Association Dissolution (Liquidation) Plans and Progress' semi-annually starting the day after the previous notice, and district offices must report these plans and progress to the Seoul Mayor within seven days from the end of each half-year period.

Seoul City plans to establish detailed enforcement regulations following the ordinance amendment and conduct 'City-District Joint Association Operation Status Inspections' based on status reports submitted by autonomous districts. The city will take appropriate administrative actions to strengthen management to prevent delays in association dissolution and liquidation that cause harm to members.

Additionally, in May, the city proposed to the Ministry of Land, Infrastructure and Transport to incorporate the Civil Act's 'dissolution and liquidation-related provisions' into the 「Urban and Residential Environment Maintenance Act」 and to establish regulations allowing punishment for failure to dissolve (liquidate) associations without justifiable reasons.

Han Byung-yong, Director of Seoul City's Housing Policy Office, said, "Since there have been frequent cases where delayed dissolution and liquidation of maintenance project associations led to harm to members, we will strictly manage undissolved associations using this ordinance amendment as an opportunity. We will also continuously review and improve systems to resolve various difficulties and problems in the maintenance project process."

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