22,000 Unregistered Residential Lodging Facilities in Gyeonggi-do... Social Issues Such as School Overcrowding

Gyeonggi Province is taking full-scale action to resolve issues related to 22,000 unregistered ‘living accommodation facilities’ within the province.

Living accommodation facilities are designed for long-term residents and, unlike general lodging facilities in urban areas, allow cooking. As a result, illegal cases such as converting living accommodation facilities into residential housing have frequently occurred. Especially since 2018, the significant increase in living accommodation facilities has led to community conflicts such as overcrowding in nearby schools and parking shortages.

To address this, the Ministry of Land, Infrastructure and Transport announced measures to prevent illegal use of living accommodation facilities in March 2021, and in May of the same year, made lodging business registration mandatory under the Building Act. Subsequently, in October 2021, the criteria for changing the use to officetels were relaxed by allowing floor heating, abolishing exclusive exits, and permitting balcony installation, granting a two-year special period. Furthermore, in October 2023, considering the time required for owners of living accommodation facilities to register as lodging businesses, a guidance period was granted until the end of 2024, and enforcement fines have been deferred.

Accordingly, from 2025, local governments will impose enforcement fines amounting to 10% of the standard market value of the building if living accommodation facilities are used for residential purposes without lodging business registration.

In this context, Gyeonggi Province decided to tackle the living accommodation facility issues because, despite the special period for relaxed use change criteria and the guidance period for lodging business registration, the registration rate and use changes within the province have not significantly increased.

According to Gyeonggi Province, as of January 2024, there are 33,000 completed living accommodation units in the province. Among these, only 11,000 units, or 33%, have completed lodging business registration. The remaining 22,000 units remain unregistered.

Given this situation, on the 29th of last month, Gyeonggi Province held a joint strategic meeting with city and county officials to discuss measures for unregistered living accommodation facilities.

Joint Strategy Meeting on Residential Accommodation Facilities

원본보기 아이콘

At the meeting, Gyeonggi Province decided to introduce a ‘Living Accommodation Pre-Review System’ in the second half of the year, which will verify in advance whether lodging business registration or use change is possible for owners of living accommodation facilities.

The Living Accommodation Pre-Review System is a measure to quickly determine the future management direction of living accommodation facilities by allowing confirmation of lodging business registration or use change possibilities in advance, even if the consent rate (80% or higher) is not met.

Furthermore, Gyeonggi Province plans to actively promote lodging business registration through city and county governments and propose to the central government further relaxation of criteria for changing living accommodation facilities into officetels.

Lee Eun-seon, Director of the Architecture and Design Division of Gyeonggi Province, stated, "Gyeonggi Province has prepared a management plan to systematically and efficiently manage living accommodation facilities. Going forward, we will cooperate with 31 cities and counties within the province to ensure proper lodging business registration and prevent illegal use of living accommodation facilities."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.