Chuncheon-si Urges Caution in Recruiting Founders for 'Cooperative Private Rental Housing'

Unreported Establishment and Member Recruitment of Association, Undecided Building Scale

[Asia Economy Reporter Ra Young-cheol] Chuncheon City, Gangwon Province, recently issued a caution regarding the cooperative-type private rental housing being promoted through internet portal sites.

Chuncheon City Hall

Chuncheon City stated, "The cooperative-type private rental housing currently recruiting promoters on internet portal sites does not have confirmed building scale such as the number of units or floors," and added, "special caution is required when investing."

According to Chuncheon City on the 24th, the cooperative-type private rental housing "planned to be constructed near Chuncheon City Hall" has not completed the cooperative establishment report or member recruitment report. Additionally, the building scale of 7 basement floors, 44 above-ground floors, and 400 units has not been finalized.

The Special Act on Private Rental Housing stipulates withdrawal of subscription and refund of membership fees for applicants joining the cooperative after its establishment.

The Framework Act on Cooperatives does not specify refund (withdrawal) of investment funds during the promoter stage, so it is essential to verify the subscription contract, articles of incorporation, and fund management before joining.

During administrative procedures such as approval review of the housing construction project plan and various deliberations conducted after cooperative establishment, there may be reductions or changes in building scale and project plans, or project cancellations, so special caution is necessary when investing.