Sarangjeil Church's 'Brazen Holdout' Ends with Union's Surrender... Sets Worst Precedent

Jangwi 10 District Holds General Meeting and Approves 50 Billion KRW Compensation Plan
Eviction Execution Fails at Site 6... Project Delays Lengthen and Interest Burden Increases, Leading to Changed Stance
"May Become a Significant Obstacle to Compensation Systems in Other Redevelopment Areas"

Pastor Jeon Gwang-hoon of Sarang Jeil Church Photo by Yonhap News

[Asia Economy Reporters Kim Hyemin and Hwang Seoyul] The redevelopment association has finally surrendered to the "bold stalling" tactics of Sarang Jeil Church, to which Pastor Jeon Gwang-hoon belongs. The association reached a consensus to pay compensation of 50 billion KRW, including demolition and construction costs. Critics point out that this sets a worst-case precedent that ignoring the law and holding out until the end can secure the desired compensation. Dissatisfaction over this decision also erupted among some association members.

The Jangwi 10 District Redevelopment Association in Seongbuk-gu, Seoul, held an extraordinary general meeting on the afternoon of the 6th and approved the payment of 50 billion KRW in compensation demanded by Sarang Jeil Church. According to the association, out of 423 members, 221 voted in favor including those who submitted written resolutions, while 127 opposed. A total of 357 members participated either in person or by written vote.

The association had considered pursuing redevelopment excluding Sarang Jeil Church after winning an eviction lawsuit (a lawsuit where a property owner seeks to regain possession from an occupant) and attempting forced demolition, but ultimately gave up due to the church’s forceful stalling involving hundreds of congregants. Public opinion favored "quickly meeting the demands and proceeding with the project," which outweighed the opposing votes.

One association member attending the meeting said, "I’m almost 80 years old and have already waited over 10 years. If this drags on any longer, will I even live to see the redevelopment completed?" He added, "Most members over 60 probably share similar thoughts." Another member said, "It has dragged on for over 13 years, and the monthly interest burden alone exceeds 1.3 billion KRW, making it hard to bear. The members chose the quicker path."

As a result, Sarang Jeil Church will receive 50 billion KRW in compensation, including construction costs. The church claims that including land compensation, the total will reach about 70 billion KRW. This amount far exceeds the Seoul city appraisal value of 8.2 billion KRW. On the other hand, association members will bear a burden of roughly 100 million KRW each when divided by the number of members. If this is reflected in the general sale price, prospective buyers on the waiting list are expected to bear the cost.

On November 5th last year, the 5th eviction enforcement was carried out at Sarang Jeil Church, but the Sarang Jeil Church side strongly resisted using physical force.

However, dissatisfaction still persists among association members. Kim (60), who attended the meeting, said, "Why should we bow to people who ignore the law even after a Supreme Court ruling? It’s utterly unfair." Another member said, "I don’t understand why the stance of the association head, who was once the toughest, has changed. It’s unacceptable that those who follow the law suffer losses while those who don’t benefit."

There are also reactions expressing a sense of helplessness in a situation where the law is ignored and unresolved. One member said, "Seeing that even the law can’t solve this, I feel like there’s no one in South Korea to help us," adding, "Shouldn’t Seoul city and Seongbuk-gu take a more active role in mediation?"

In the redevelopment industry, there are concerns that this outcome could affect other redevelopment projects. Professor Choi Hwang-su of Konkuk University’s Department of Real Estate said, "This case will pose a significant obstacle to the compensation system and project promotion across redevelopment projects. Considering the compensation amount, it’s impossible not to refer to land area and official prices, and the current compensation is quite large." Researcher Lee Eun-hyung of the Korea Construction Policy Institute also said, "In the future, if there are elements like religious facilities that hinder smooth negotiations, they will be excluded from the project site from the start. Otherwise, it will be best to reduce projects involving relocation and other processes that continuously increase project costs from the outset."