[Exclusive] Seoul City stalls remodeling, blindsiding 80 apartment complexes with a single line in a document

[Financial News] Seoul City is working on measures to promote remodeling, including easing regulations, but another rule that hampers projects has emerged on the ground. The city is demanding a “second safety assessment” from complexes undertaking horizontal expansions and preparing to relocate next year, citing guidelines drawn up three years ago. With around 80 project sites at risk of being stalled for years, industry voices are protesting that “contradictory regulations not even provided for by law are holding remodeling projects in a stranglehold.”
According to the urban renewal industry on the 5th, the remodeling association at Apartment A was recently notified that approval of its rights-change plan by the district office was conditional on complying with Seoul City’s “Measures to Improve Safety Standards for Apartment Remodeling.” Drawn up by the city in July 2023, the document says that horizontal expansions should be subject to the same safety standards as vertical expansions, including a second safety inspection.
Under the current Housing Act, Apartment A, which is undertaking only a horizontal expansion, is not subject to a second safety assessment. Vertical expansions, which add floors and require the structure to bear additional upper loads, must receive a Grade B or higher in the safety assessment and undergo a second assessment after residents move out and the building is demolished. By contrast, horizontal expansions, which enlarge floor space only to the sides, front or rear, do not add upper loads, can proceed with a Grade C rating and are not subject to a second safety assessment.
The three-year-old guidelines have only now come to light because no horizontally expanded complexes had finalized their rights-change plans until now. An industry source criticized the situation, saying, “Many complexes in Seoul recognized the difficulties of a second safety assessment and gave up on vertical expansions or pilotis designs. They overcome all kinds of regulations and secure approval for a horizontal expansion, only to find themselves trapped in another regulatory prison.”
Adding a second safety assessment could delay a project by at least a year after residents move out and the building is demolished, and in the worst case could lead to the termination of the construction contract and the suspension of the project. Cheongdam Geonyeong and Sindap Geukdong, which underwent a second safety assessment, took more than a year just to pass, and their structural reinforcement costs alone ran several billion won higher. If Grade C complexes are forced to carry out repairs and reinforcement to Grade B standards, residents’ contributions will inevitably rise sharply. Another industry source said, “If this continues, all around 80 project sites in Seoul that have established associations will face the same situation.”
Against this backdrop, association heads across Seoul are being backed into a corner. They are struggling to persuade local governments and win residents’ understanding. Experts also say Seoul City needs to review the matter. An expert on remodeling structures pointed out, “Since these projects are being held back by an old internal document, Seoul City needs to undertake a comprehensive review.”
A Seoul City official responded, “On safety, our position is that whatever needs to be strengthened should be strengthened, based on experts’ views.” Asked about Seoul Mayor Oh Se-hoon’s remarks that he would draw up measures to promote remodeling, the official said, “We are working to resolve all the issues causing frustration as much as possible,” adding, “We will provide various forms of support to improve project viability, but we have no choice but to take a strict approach to safety.”
Meanwhile, confusion over sudden changes in safety standards is also occurring in Gyeonggi Province. Neuti Maeul Complexes 3 and 4 in Jeongja-dong, Bundang-gu, Seongnam, have already obtained permits and completed around 99% of structural work, yet they are at risk of having changes to structural safety standards and safety assessment procedures introduced by the central and local governments applied retroactively. The volatility of administrative standards is seen as the biggest obstacle to these projects.
[email protected] Jeon Min-kyung Reporter