[Asia Economy Reporter Onyu Lim] The Seoul Metropolitan Government announced on the 8th that it will actively consider extending the project deadlines for 24 districts that applied for an extension of the redevelopment project sunset clause. The redevelopment project sunset clause is a system that removes areas from redevelopment zones if the project is not advanced or is delayed for a certain period. It was established to prevent deterioration of project feasibility due to delays or suspensions and to protect residents from conflicts.
According to the Urban and Residential Environment Improvement Act, as of the 2nd of this month, a total of 40 districts in Seoul are subject to the sunset clause. Among them, 24 districts applied for an extension, 15 districts either received approval for the establishment of a union or applied for such approval, thus escaping the sunset clause. The remaining one district (Sinbanpo 26th Complex) decided to lift the redevelopment zone through resident agreement and proceed with the project using a small-scale reconstruction method.
Among the 24 districts that applied for an extension, 22 districts had more than 30% of landowners (owners of buildings and land within the redevelopment zone) agree to the extension application, and the other 2 districts were decided by the district office heads to remain as redevelopment zones. According to the Urban Redevelopment Act, if more than 30% of landowners agree or if the district office head deems an extension necessary, the sunset deadline can be extended within a two-year range.
The Seoul Metropolitan Government plans to extend the sunset deadline reflecting the opinions of the district offices if the majority of residents in the 24 districts applying for extension wish to proceed with the project. The decision on whether to extend will be finalized by Seoul City after consultation with the Urban Planning Committee (or the Urban Redevelopment Committee in the case of redevelopment promotion projects).
Ryu Hoon, head of the Seoul Housing and Architecture Headquarters, said, "Since each redevelopment zone has different circumstances, we will decide on the extension for each zone after consultation with the Urban Planning Committee. We will do our best to support not only the simple extension of the sunset deadline but also to proceed to the next stage of the project."
Meanwhile, as of March 2nd, a total of 40 redevelopment zones in Seoul are subject to the sunset clause. Among them, 24 districts applied for an extension, 15 districts either received approval for the establishment of a union or applied for such approval, thus escaping the sunset clause. The remaining one district decided to lift the redevelopment zone through resident agreement and proceed with the project using a ‘small-scale reconstruction’ method.
▲ Approved union establishment (9 locations): Cheongnyangni 6, Jangwi 3, Gaebong 3, Banghwa 3, Gireum 5, Donam 6, Bongcheon 1-1, Sillim 1, Sinbanpo 4th Complex
▲ Union establishment application (6 locations): Seongsu Strategy 2, Singil 2, Mia 9-2, Mia 4-1, Seocho Jinheung Apartment, Jangmi 1, 2, 3 Complex Apartments
▲ Redevelopment zone lifted (1 location): Sinbanpo 26th Complex (66 households, 1 building)
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