What Exactly Is a 'Generational Separation' Apartment for Two Families Under One Roof?

▲ Floor plan of a generation-separated apartment

[Asia Economy Reporter Tae-min Ryu] Recently, amid strengthened tax and loan regulations targeting multi-homeowners, 'generation-separated' apartments, also known as 'two families under one roof' apartments, are gaining attention.

Generation-separated apartments were first introduced in the 1990s by Korea Land and Housing Corporation (LH) under the concept of 'partial rental apartments.' At that time, they did not receive a favorable response due to issues such as frequent encounters between homeowners and tenants leading to privacy exposure and the lack of clear standards for management fee calculation.

On the other hand, various advantages have recently been highlighted. From the homeowner's perspective, generation-separated apartments allow for both actual residence and rental income simultaneously, while maintaining the benefits of owning a single home even if the house is divided. If the sale price does not exceed 900 million KRW, comprehensive income tax on rental income is also reduced. For studio tenants, there are benefits such as enjoying community spaces and convenience facilities of newly built apartments at relatively low costs, as well as advantages in security and safety.

Even without renting out, the number of households utilizing the advantages of generation-separated apartments is increasing. They can be used as independent spaces for adult children or as workspaces. Especially with the rising demand for telecommuting, these features are gaining popularity.

However, disadvantages still exist. Since the two households share a wall, noise vulnerability is inevitable. Although management fees for separated units may be calculated separately, conflicts between homeowners and tenants can arise if fees are calculated collectively. The relatively high rent for single-person households is also pointed out as a drawback. Additionally, if parking spaces were planned without considering tenants, conflicts among residents over parking issues may occur.