"Cooperative or Trust?"... Debating the Reconstruction Method for Mokdong 7-danji

October 7 Resident Briefing Session Held
Experts Invited to Compare Pros and Cons of Trusts and Associations

"Trust or association."

The leading complex in Mokdong reconstruction, Mokdong New Town 7th Complex in Yangcheon-gu, Seoul, is working together with residents to decide the reconstruction method.

Apartment Complex 7, Mokdong New Town, Yangcheon-gu, Seoul

According to the maintenance industry on the 30th, the Reconstruction Preparation Committee of Mokdong New Town 7th Complex will hold a residents' briefing session at the Mokdong Youth Center on the afternoon of the 7th of next month. The purpose is to report on the progress related to the designation of the maintenance area and to invite experts to compare and explain the pros and cons of the trust and association methods.

The trust method will be explained by Hana Asset Trust, and the association method will be explained by Han Hyung-gi, former chairman of the association who reconstructed Acro River Park in Sinbanpo 1st Complex, Seocho-gu, Seoul.

While the association method has been dominant in the Seoul reconstruction market, recently the trust method has emerged as an alternative. As the power struggle between associations and construction companies over increased construction costs intensifies, negotiation power has become a key factor determining the speed of the project. The trust method has greater expertise than associations and has the power to check construction companies. Moreover, if the trust company undertakes the project, there is no need to establish an association, saving about four years in the early stages.

However, the trust method has a cost burden with fees set at 2-4% of the total sales price, and it has the limitation of being less able to reflect the owners' opinions compared to the association method.

Meanwhile, Mokdong New Town 7th Complex is a large complex with 34 apartment buildings and a total of 2,250 households, located near Mokdong Station on Subway Line 5. After passing the detailed safety inspection for reconstruction in January, it submitted a proposal for a maintenance plan under the fast-track rapid integrated planning to Yangcheon-gu Office in June and is currently in the process of establishing the maintenance plan.

Jung Sung-jin, chairman of the Reconstruction Preparation Committee of Mokdong 7th Complex, said, "Before deciding on the project method, we prepared a place where residents can receive sufficient explanations about the characteristics and pros and cons of the trust and association methods," adding, "After the briefing session, we plan to conduct a vote on the project method for all residents of the 7th Complex as soon as possible."

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