[Oh Se-hoon Administration Real Estate Policy] <4> Easing Reconstruction Safety Inspections... Is It Possible Without Authority?

First Hurdle for Reconstruction Promotion 'Safety Inspection'
One of Seoul Mayor Oh Se-hoon's Key Pledges
Sharp Decline in Safety Inspection Passes After Strengthening Since 2018
Seoul City "Cannot Defy Public Opinion"... Pushing for Relaxation
Ministry of Land, Infrastructure and Transport Unmoved... "Seoul City Has No Authority"

[Asia Economy Reporter Moon Jiwon] Among those who welcome the results of the April 7 by-election the most are residents of aging apartments in the early stages of reconstruction. Due to strengthened safety inspection standards, reconstruction efforts had been sluggish, but expectations have spread that regulations will be eased following Mayor Oh Se-hoon's inauguration. In particular, in areas such as Sanggye-dong in Nowon-gu and Mok-dong in Yangcheon-gu, Seoul?where Mayor Oh directly mentioned during his candidacy that he would "hasten regulatory easing"?there is a growing atmosphere of anticipation for reconstruction revitalization along with rising asking prices.

However, ultimately, Mayor Oh has no direct way to ease regulations related to reconstruction safety inspections. The safety inspection, known as the first gateway to reconstruction, requires passing through three stages: ▲on-site survey (preliminary safety inspection) ▲first detailed safety inspection ▲second appropriateness review. The problem is that most of these procedures fall under the jurisdiction of the government and the National Assembly. Especially, the second appropriateness review, which is the final and most critical stage of the safety inspection, is conducted by the Korea Institute of Civil Engineering and Building Technology and the Korea Infrastructure Safety & Technology Corporation under the Ministry of Land, Infrastructure and Transport (MOLIT) according to regulations, leaving no room for Seoul City to exert influence.

Currently, the safety inspection evaluation criteria consist of four categories: structural safety, residential environment, building finishing and facility aging, and cost analysis. In 2018, the government increased the weight of structural safety from 20% to 50%. Structural safety assesses the risk of collapse due to building aging and is considered the most stringent item in the second stage. A MOLIT official stated, "Changes in the weighting of evaluation criteria require legal amendments," adding, "Seoul City and others currently have no way to influence the safety inspection results."

Since Seoul City is aware of this fact, the atmosphere is somewhat cautious in adjusting the pace, differing from the determination shown by Mayor Oh during the election campaign. A Seoul City official said, "Since the safety inspection standards fall under MOLIT's jurisdiction, continuous consultations will be necessary," and added, "We will begin full-scale consultations after completing internal review work."

However, Seoul City's determination is clear. The official said, "The government cannot go against public opinion," and added, "The current safety inspection regulations are somewhat disconnected from reality."

Seoul Mayor Oh Se-hoon is attending the Cabinet meeting held via video at the Government Seoul Office in Jongno-gu, Seoul, on the morning of the 13th. Photo by Hyunmin Kim kimhyun81@

The Ministry of Land, Infrastructure and Transport, the responsible ministry, has yet to show enthusiasm. Since regulations have been continuously strengthened through the 2018 'Normalization of Reconstruction Safety Inspection Standards' and the June 17 measures last year, overturning these immediately after Mayor Oh's inauguration would essentially mean admitting policy failure. Many in the industry also believe that the government will find it difficult to easily accept Seoul City's opinion on regulatory easing. In particular, the bill containing the reinforcement of reconstruction safety inspections, which was to be promoted under the June 17 measures, is still pending in the National Assembly and has not yet been implemented.

There is a possibility that the government may make some adjustments later. This is because the government has experienced the angry real estate public sentiment during the Seoul mayoral by-election and there are many complaints that the current safety inspection regulations are excessively strict. In fact, since the reconstruction regulations were strengthened in 2018, the number of complexes passing safety inspections in Seoul has been so few that it is a burden for the government. A Seoul City official said, "The number of complexes passing safety inspections has decreased by almost 90% compared to before the regulations."

An industry official said, "The government strengthened safety inspection regulations to stabilize housing prices in Gangnam, but major complexes in Gangnam had already passed all safety inspections before that," adding, "Therefore, areas like Sanggye-dong and Mok-dong, which have complied well with government policies, are suffering disadvantages by failing safety inspections despite being built around the same time."