SH Corporation Promotes System Improvement for Relocation Timing in Old Rental Apartment Redevelopment

Amendment to the Long-Term Lease Housing Act Submitted to the Ministry of Land for Pre-Approval Relocation Possible

Seoul Housing and Communities Corporation (SH Corporation) is pushing for a system improvement that allows residents to relocate even before project approval during the redevelopment of aging rental apartments such as Hagye 5 Complex and Sanggye Madeul.

On the 15th, SH Corporation announced that it submitted a revision bill of the "Support Act for Improving the Quality of Life of Long-term Public Rental Housing Tenants (Long-term Rental Housing Act)" to the Ministry of Land, Infrastructure and Transport.

The long-term public rental housing redevelopment project is a project to improve the living environment of low-income households by demolishing and rebuilding aging rental complexes according to the Long-term Rental Housing Act.

Seoul City plans to gradually redevelop rental housing complexes in Seoul that are over 30 years old, starting with pilot project sites such as Hagye 5 Complex and Sanggye Madeul Complex in Nowon-gu.

For the redevelopment project to begin, existing residents must relocate, but the current Long-term Rental Housing Act stipulates that relocation can only occur after project approval. This causes a long delay until construction starts, and if construction is delayed, the project costs increase, which is reflected in rental and sale prices.

SH Corporation explained that existing residents have to wait a long time until they can move back in, and the management costs of vacant rental units kept empty for relocation also become an issue.

The amendment to the Long-term Rental Housing Act includes provisions allowing relocation to begin after the project plan is announced but before project approval. This secures a period for relocation before project approval, shortening the project duration and reducing costs.

Residents will receive statutory relocation compensation, relocate early, and can move back in once the redevelopment project is completed.

Kim Heon-dong, President of SH Corporation, said, "Due to the limitations of the current Long-term Rental Housing Act, unnecessary vacant unit management costs are wasted and the project period is prolonged. Through the amendment of the Long-term Rental Housing Act, we request the cooperation of the Ministry of Land, Infrastructure and Transport to swiftly redevelop aging rental housing across Seoul, totaling 30,000 households."