Real Estate Associations with Mixed Fortunes After the General Election

Remodeling Association "Alliance with the Democratic Party, 'Remodeling Special Act' Re-promotion"
Licensed Realtors & Architects Association Struggles to Find Next National Assembly Sponsor

The results of the April 10 general election have brought mixed feelings among real estate-related associations. Remodeling-related associations are aiming for a turnaround in the atmosphere following the election results. On the other hand, associations such as the Korea Association of Realtors and the Korea Institute of Registered Architects are struggling to find new sponsors to push forward their long-standing projects due to the election aftermath.

A representative from a remodeling-related association stated on the 17th, "In some Seoul districts with several remodeling promotion complexes, pro-remodeling Democratic Party lawmakers were elected," adding, "We plan to unite with them to work on preparing remodeling legislation."

Exterior view of 'The Sharp Dunchon Foret' in Gangdong-gu, Seoul, undergoing remodeling construction.

Currently, there is no separate legislation that specifically addresses remodeling regulations. The industry claims that remodeling has been subject to arbitrary regulations as it is mixed within the Housing Act. As demand for remodeling grew, the National Assembly pushed for the ‘Special Act on Remodeling of Multi-family Housing’ in 2022. However, discussions have since stalled, and the bill is expected to be automatically discarded in the 21st National Assembly. The representative explained, "Mayor Oh Se-hoon and the ruling party opposed remodeling, calling it a ‘remnant of the Democratic Party,’" and added, "Conversely, we are trying to use this conflict to reach out to the Democratic Party, which holds the majority seats."

In contrast, some associations are wearing a gloomy expression. The Korea Association of Realtors has been striving to pass the ‘Realtor Act Amendment’ to legalize the association as a statutory body. The amendment aims to grant disciplinary authority over realtors and the power to crack down on market-disturbing activities to protect citizens' property rights and eradicate lease fraud. In the 21st National Assembly, Democratic Party lawmaker Kim Byung-wook had introduced the bill as a representative sponsor, seemingly bringing the ‘long-standing project’ closer to resolution. However, after Kim lost his seat in Seongnam Bundang to a People Power Party candidate and failed to return to the National Assembly, the association now needs to find a new sponsor for the bill. An industry insider said, "We were closely watching the election results, judging that the bill had low chances of passing in the 21st National Assembly, so this is quite disappointing," and added, "Once the 22nd National Assembly term begins, we plan to communicate our position evenly to both major parties."

On the 15th, dark clouds heavily covered the National Assembly building. With the 22nd general election concluded on the 10th, attention is focused on how the 21st National Assembly, with just over a month left in its term, will resolve pressing issues such as pension reform and the abolition of the financial investment tax. Photo by Kim Hyun-min kimhyun81@

The Korea Institute of Registered Architects is in a similar situation. Due to the defeat of Kim Hak-yong, a People Power Party lawmaker who had introduced the ‘Architect Act Amendment’ aimed at realizing fair compensation for architects’ work, a new sponsor must be found. This bill includes provisions to apply the ‘Scope of Work and Compensation Standards for Architects in Publicly Commissioned Projects,’ currently limited to public buildings, to privately commissioned buildings as well.

Meanwhile, the ‘Bill on Separate Commissioning of Basic Architectural Design and Structural Design,’ which the architects’ association opposes, is likely to be reintroduced in the 22nd National Assembly. The bill’s sponsor, Kang Dae-sik (People Power Party), was successfully re-elected in this election. This bill gained momentum after a structural calculation error in the architectural design drawings was identified as one of the causes of the underground parking lot collapse accident at an apartment construction site in Geomdan New Town, Incheon, in April last year. The bill aims to allow structural engineers to perform architectural design and construction supervision, which are currently defined as exclusive tasks of architects, so that errors can be corrected during the supervision phase. However, architects are concerned that if commissioning is separated, cooperation with the architect overseeing the architectural design will not be mandatory, making organic collaboration difficult and potentially compromising the safety and quality of buildings.