'Sangdo Starrium Jujutaek' in Sangdo-dong, Seoul
Association leader's performance bonus apartment proposed as a single agenda item
Decision draws attention amid divided opinions among members
At the largest local housing cooperative (Jijutaek) project site in Dongjak-gu, Seoul, a proposal to award the cooperative president with an apartment as a performance bonus has sparked controversy among the members.
According to the maintenance industry on the 9th, the ‘Sangdo Starrium Jijutaek’ in Sangdo-dong, Dongjak-gu, has placed the ‘Resolution on Payment of Performance Bonus to the Cooperative President’ on the agenda for the regular general meeting scheduled for the 19th. The proposed performance bonus for the cooperative president is one apartment with a net floor area of 84㎡. The estimated member sale price for an 84㎡ unit in this complex is between 1.1 billion and 1.3 billion KRW.
This project is being developed using the Jijutaek method, where local residents form a cooperative to jointly purchase land and build apartments. The project proceeds solely with members’ contributions without general sales. Since the cooperative must directly secure the apartment site, land acquisition is considered the key to the project's success.
Some members support the performance bonus, citing the cooperative president’s efforts in filing a compulsory purchase lawsuit to secure land ownership and leading the project to the construction phase. Member A said, “Looking at other Jijutaek projects nearby, many have failed, so compensation for the achievement of reaching the construction stage is naturally warranted.”
Sangdo Starrium, Sangdo-dong, Dongjak-gu, Seoul
Sangdo Starrium, located at 182-13 Sangdo-dong, will consist of 2,002 units in apartments ranging from 5 basement floors to 35 above-ground floors. It is the largest Jijutaek project currently underway in Dongjak-gu. GS Construction is the contractor. The cooperative was established in April 2020, and the project plan was approved in February 2022. Construction began at the end of November last year. The expected move-in date is 2028.
There are also opinions that paying a performance bonus to the cooperative president is premature. It is considered a hasty decision with more than four years remaining until completion and move-in. Member B stated, “I am not opposed to paying a performance bonus itself, but since there is a possibility of additional member contributions, I believe it is appropriate to discuss this at the stage of cooperative dissolution.” Member C argued, “The cooperative president is already sufficiently compensated through salary,” and added, “The performance bonus should be discussed in advance with measures such as differentiating it according to increases or decreases in additional member contributions.”
Opposition has also been raised against awarding an entire apartment as a performance bonus. Member D said, “It’s like the tail wagging the dog,” and added, “There needs to be a discussion on whether an apartment is an appropriate performance bonus.”
This controversy over the cooperative president’s performance bonus at this project is not the first. In 2022, a proposal to pay a performance bonus to the cooperative executive team was also put forward but was rejected due to opposition from members. At that time, the cooperative president announced through a notice, “If the proposal is rejected, I promise that there will be no further discussions on performance bonuses in the future.”
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