Warning for 'Cooperative-type Private Rental' in the Seoul Metropolitan Area

Hwaseong City "No Cooperatives Currently Registered in Jurisdiction"
Cooperatives Recruiting Members with 'Affordable Prices' in Osan and Ansan

A warning has been issued regarding ‘cooperative-type private rental’ in the metropolitan real estate market.

Hwaseong City, Gyeonggi Province, stated in a press release on the 18th, "Please be cautious about the recruitment of promoters or tenants for the ‘cooperative-type private rental housing project.’"

The ‘cooperative-type private rental housing project’ refers to a business where a private rental cooperative established under the Framework Act on Cooperatives constructs 30 or more rental housing units, including private construction rental housing, and prioritizes supply to its members. After the rental period ends, members receive the right to purchase the respective housing units.

According to the city, such projects are currently being promoted in Gians-dong and Bansong-dong in Hwaseong City.

However, the city clarified that no reports of member recruitment for cooperative-type private rental projects have been submitted in Hwaseong City to date. Under the Private Rental Housing Act, ‘cooperative-type private rental housing projects’ can publicly recruit members only after reporting member recruitment. Tenant recruitment is also possible only after the business operator reports the supply of private rental housing.

A housing department official from Hwaseong City explained, "It appears that these projects are currently operating under terms like ‘membership recruitment’ instead of ‘member recruitment.’ The specific legal violations are still under review."

The city also added that it is important to note that individual members who join bear full responsibility as project entities for any delays or issues in the project.

Meanwhile, according to the real estate industry, cooperative-type housing projects have recently been promoted in the metropolitan area, including Osan and Ansan, besides Hwaseong City. Many of these projects are reportedly being carried out without member recruitment reports, similar to Hwaseong, requiring consumer caution.

Hwang Gukhwan, head of the Hwaseong City Housing Department, said, "We urge citizens to be especially cautious to prevent damage caused by joining as members or tenants of private rental apartments," adding, "If any illegalities related to member recruitment are found, administrative actions such as prosecution will be taken."

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