[Real Estate AtoZ] Why Have the Previously Blocked Reconstruction Safety Inspections Been Passing One After Another?

Recently, major reconstruction complexes in Seoul have been accelerating their project progress. This is thanks to the government's deregulation, which has allowed them to consecutively pass the long-awaited safety inspections. As the 'safety inspection bottleneck' that hindered reconstruction projects has been removed, more complexes are seizing the opportunity to jump into reconstruction.

What Exactly Is Reconstruction Safety Inspection?

Reconstruction safety inspection is the process of investigating the degree of aging and deterioration of housing to determine whether reconstruction is feasible. The inspection covers structural safety, repair costs, and surrounding conditions. Safety inspection is a mandatory gateway in the reconstruction project process, and it can be initiated if more than 10% of residents agree.

The reconstruction safety inspection goes through three stages: preliminary safety inspection (on-site survey), first-stage detailed safety inspection, and second-stage detailed safety inspection (appropriateness review). First, the landowners request the safety inspection, and the local government head conducts an on-site survey. If necessary, public institutions such as the Korea Facilities Safety Corporation may be consulted during the on-site survey.

When entering the first-stage detailed safety inspection, a specialized safety inspection agency evaluates and grades four categories: structural safety, residential environment, equipment aging, and cost analysis (economic feasibility). To proceed with reconstruction, the safety inspection must result in a grade of D or lower among grades A to E. Grade D indicates conditional reconstruction, requiring the second-stage detailed safety inspection, the appropriateness review. Grade E allows immediate reconstruction.

‘Safety Inspection Bottleneck’ Removed Due to Changes in Evaluation Weighting

The recent consecutive passing of safety inspection thresholds by major reconstruction complexes is due to changes in the weighting of evaluation categories following deregulation. Previously, structural safety accounted for 20% and residential environment 40% of the total safety inspection evaluation. However, when the Moon Jae-in administration tightened regulations in March 2018, the structural safety weighting was significantly increased to 50%, and residential environment was reduced to 15%, making it practically difficult to pass safety inspections for several years.

However, the situation changed when the Yoon Suk-yeol administration eased regulations last January. Structural safety was reduced from 50% to 30%, and residential environment was expanded to 30%, increasing the likelihood of passing safety inspections again. In fact, among 14 complexes in the Mokdong and Sinjeong-dong areas of Yangcheon-gu, Seoul, 11 recently passed the safety inspection, confirming their reconstruction.

Second-Stage Detailed Safety Inspection Changed from Mandatory to Optional

Additionally, the second-stage detailed safety inspection, the appropriateness review, has been changed from mandatory to optional. Previously, complexes that received a grade D in the first-stage detailed safety inspection had to undergo an appropriateness review by a public institution. However, according to the government's new 'Rationalization Plan for Reconstruction Safety Inspection' announced last January, the appropriateness review can now be selectively conducted only if requested by the local government.

Looking at the case of the Mokdong New Town complexes, complexes 1, 2, 4, 8, and 13 moved from 'conditional reconstruction' to confirmed reconstruction without additional appropriateness review, accelerating project progress. In Nowon-gu, six complexes including Sanggye Jugong 1, 2, and 6, Sanggye Hanyang, Sanggye Mido, and Hagye Jangmi Apartments also changed from 'conditional reconstruction' to confirmed reconstruction. In Songpa-gu, four complexes?Olympic Athlete's Village, Hanyang 1st, Pungnam Miseong, and Pungnap Geukdong?that received grade D in the first-stage detailed safety inspection were confirmed to have passed the reconstruction safety inspection last month.

However, caution is needed as safety inspection grades are used differently in reconstruction and remodeling projects. Unlike reconstruction, remodeling projects require higher safety inspection grades to proceed. If the first-stage safety inspection results in grade C or higher, horizontal annex remodeling is possible, and vertical extension requires grade B or higher. Furthermore, unlike horizontal annex remodeling, vertical extension remodeling requires additional first and second safety reviews and a second-stage safety inspection beyond the first-stage safety inspection.