Aegis Asset Management: "Mutual Growth Agreement Preventing Forced Evictions Bears Fruit in Sewoon 5 District"

Aegis Asset Management and Jung-gu Office are achieving results in an unprecedented challenge called 'redevelopment coexistence without forced eviction.'

Aegis Asset Management announced on the 18th that 172 out of 174 local merchants agreed to a coexistence agreement in the Sewoon 5 District urban maintenance-type redevelopment project.

This is on the verge of becoming the first-ever 100% voluntary relocation agreement by tenants in the history of urban maintenance projects. It is evaluated as a case that broke the vicious cycle of conflicts and forced evictions frequently occurring during redevelopment processes.

This achievement is the result of a tripartite coexistence agreement signed at the end of last year, led by Jung-gu Office, between Sewoon 5 District PFV (Aegis Asset Management) and the Sanlim-dong Merchants Association. The goal of the agreement is to minimize human rights violations and social conflicts that may arise from relocation and building demolition in Seoul’s urban maintenance-type redevelopment projects by preventing forced eviction and removal through cooperation among local governments, developers, and tenants for the first time. The parties to the agreement agreed to implement the pact so that all tenants can smoothly complete their relocation by consensus.

The main contents of the agreement include ▲not carrying out forced eviction and removal of tenants during the relocation period ▲actively striving for compensation and relocation consultations to enable tenants to move during the relocation period ▲prior consultation with the Sanlim-dong Merchants Association regarding eviction and removal procedures ▲cooperation of the Sanlim-dong Merchants Association to enhance tenants’ understanding of eviction and removal procedures ▲and the formation and operation of a tripartite consultative body for conflict resolution. In addition, business compensation including relocation expenses will be paid according to relevant laws, and Jung-gu Office will also support the search for alternative business locations.

Previously, Jung-gu Office prepared for the promotion of the coexistence agreement by explaining business compensation standards and relocation measures for small business tenants through a visiting resident conflict management meeting involving urban administration experts, appraisers, and conflict specialists.

The Sewoon 5 District redevelopment project is a project to develop a 37-story mixed-use office facility on a 7,672㎡ site at 190-3 Sanlim-dong, Jung-gu, Seoul. Aegis Asset Management is overseeing the project as the asset management company, and it is being carried out as an eco-friendly development that expands green space in accordance with Seoul City’s ‘Green Ecological Urban Re-creation Strategy.’

An official from Aegis Asset Management said, “The near 100% agreement on the coexistence pact by tenants is the result of the efforts and mutual respect of all stakeholders,” and added, “We will do our best to reach 100% agreement through amicable consultations with the remaining two merchants.”

He continued, “This coexistence agreement is a valuable achievement made possible by Jung-gu Office’s proactive efforts to prevent conflicts that may arise in redevelopment projects and the cooperation of tenants,” and added, “We expect it to become a new milestone promoting mutual development among local governments, developers, and tenants.”

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