Seongnam City Strengthens Transparency in Reconstruction Projects... First Application at Eunhaeng Jugong Apartments

by Lee YeongKyu

Published 02 May.2023 08:24(KST)

Seongnam City Hall

Seongnam City in Gyeonggi Province is strengthening the transparency of reconstruction projects.

On the 2nd, Seongnam City announced that it will promote a 'feasibility verification of reconstruction project management disposition plans' conducted by specialized institutions to enhance the transparency of reconstruction projects.

The costs required for the feasibility verification will be supported by the city using funds without any burden on the association members.

Until now, disputes among association members during the 'management disposition plan establishment stage,' which determines the members' financial burden and sales methods through the evaluation of asset prices before and after reconstruction (assessing market price differences for buildings and attached land before and after reconstruction), have led to additional damages such as project delays, making countermeasures necessary.

Accordingly, through the amendment of Article 78 of the 'Urban and Residential Environment Maintenance Act' enacted in 2017, the city decided to support feasibility verification of management disposition plans for all reconstruction projects applying for approval of management disposition plans in the future by investing the Seongnam City Urban and Residential Environment Maintenance Fund.

The feasibility verification will be conducted by public institutions with expertise (Korea Real Estate Board and Korea Land and Housing Corporation) in accordance with Article 64 of the Enforcement Decree of the Urban Maintenance Act. They will review the appropriateness of ▲sales procedures ▲sales qualifications ▲project costs and contributions ▲management disposition standards included in the management disposition plan, and require corrections and supplements if any deficiencies are found.

A city official stated, "We secured the necessary budget through the council approval process for the '2023 Seongnam City Urban and Residential Environment Maintenance Fund Operation Plan Amendment (Draft)' and will start the feasibility verification of management disposition plans beginning with the 'Eunhaeng Jugong Apartment Reconstruction Maintenance Project,' the first target reconstruction project in Seongnam City."