Decrease of 2,946 Households from 2021 to Present
2,718 Purchased, 228 Relocated Above Ground
"Increased Financial Burden of Purchases, Proposal Submitted to Ministry of Land, Infrastructure and Transport"
Seoul Housing and Communities Corporation (SH Corporation) has reduced 2,946 semi-basement housing units through purchases and relocation to above-ground housing from 2021 to the first half of this year to eliminate semi-basement homes. This year, they aim to reduce about 2,000 more units by promoting active purchase plans. SH Corporation argued that since purchasing semi-basement homes requires enormous financial resources, the government should cover the entire cost with national funds.
2,718 Semi-basement Units Purchased
According to SH Corporation on the 12th, out of the 2,946 units reduced, 2,718 semi-basement homes were eliminated through purchases. This includes 1,150 existing semi-basement homes purchased and 1,568 units purchased after demolition and reconstruction agreements. Most of the purchased homes are multi-family houses without separate registration for above-ground and underground units, with 587 underground units and 2,131 above-ground units. Since the semi-basement flooding incident in August 2022, SH Corporation has actively purchased semi-basement homes. They held briefing sessions on the semi-basement home purchase project in flood-prone areas and have been accepting purchase applications continuously.
To expand purchases, they also improved the system. They simplified the criteria for non-purchase and relaxed purchase standards so that the purchase review committee could decide on purchases. They proposed to the Ministry of Land, Infrastructure and Transport to allow the purchase of semi-basement single units. Previously, multi-family houses could not be purchased as semi-basement single units.
SH Corporation aims to reduce 2,351 semi-basement units (including 50 units for community use) through purchases this year as well. As of the end of last month, the achievement rate was 27% (638 units), with 284 underground units and 354 above-ground units.
SH Corporation also supports residents of recently purchased semi-basement homes to relocate to above-ground floors and simultaneously conducts facility condition surveys and installs disaster prevention facilities to prevent flooding.
Kim Heon-dong, President of SH Corporation, is visiting a semi-basement house in Seoul to inspect disaster prevention facilities. Photo by SH Corporation
"The Government Should Bear the Entire Cost of Semi-basement Purchases"
SH Corporation announced plans to propose to the Ministry of Land, Infrastructure and Transport that the entire purchase budget be supported by national funds to expand semi-basement purchases. Currently, national funding covers only about half of the purchase costs, increasing the financial burden. According to the corporation, the cost of purchasing 2,718 units averaged 298 million KRW per household (totaling 811.064 billion KRW). Of this, national funding was 182 million KRW per household. The remaining 116 million KRW is split equally between Seoul City and SH Corporation, meaning the corporation spends about 58 million KRW per household.
They also advocated for abolishing the repayment system for purchase rental subsidies. Unlike construction rental subsidies, which do not require repayment, purchase rental subsidies funded by national funds must be returned to the government if the semi-basement homes are demolished for reuse. These purchase rental subsidies are recorded as liabilities, worsening the corporation’s financial soundness.
Since 2021, SH Corporation has also reduced a total of 228 semi-basement households by relocating them to above-ground floors. Among the 713 semi-basement homes owned, 288 units have been targeted for customized above-ground relocation based on surveys of relocation demand, preferred relocation areas, and reasons for refusal. Of the remaining 60 units, 26 are currently undergoing above-ground relocation, and 34 units are being continuously encouraged to relocate above ground.
Kim Heon-dong, President of SH Corporation, said, "Following the government and Seoul City’s policy of ‘gradual elimination of semi-basement homes,’ we will continue to purchase semi-basement housing and actively propose system improvements to expand purchases. We will do our best to ensure the safety of semi-basement residents through housing upgrades and installation of disaster prevention facilities."
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