Buyers of lifestyle accommodation facilities (Saengsuk) in Changwon, Gyeongnam, have demanded that Saengsuk be recognized as quasi-residential housing suitable for habitation.
The buyers of Hillstate Changwon Central Saengsuk held a press conference at the Changwon City Hall Press Center on the 11th, insisting, "The government and the National Assembly must uniformly improve the system nationwide to allow Saengsuk to be used for residential purposes under the quasi-housing category."
According to the Buyers’ Association, the Changwon Saengsuk is a building with 6 basement floors and 46 above-ground floors, which received a construction permit on January 10, 2017, began construction on May 26, 2021, and is scheduled for completion in October next year.
Buyers of Hillsstate Changwon Central, a residential lodging facility in Changwon, Gyeongnam, are holding a press conference demanding recognition as quasi-housing. [Photo by Lee Seryeong]
The association stated, "At the time of sales from December 2021, we were informed that actual residence and resident registration would be possible, but this turned out not to be true."
They explained, "We were told that over 70% of the purchase price could be financed at the time of sale, but since Saengsuk is not clearly residential, the maximum loan is only about 40-50%. If the residential issue is not resolved by completion, it will even be impossible to pay the balance."
They continued, "The government has said for years that residential rights could be protected through a change of use, but in reality, this is difficult due to different district unit plans and parking ordinance amendments required by each local government. In fact, only about 1% of Saengsuk have actually changed their use," they added.
They appealed, "To change the use, the number of parking spaces must be increased or safety standards such as corridor width must be modified, but with more than half the building already constructed, this is realistically not easy."
The association stated, "Recently, we filed a group lawsuit to cancel contracts and claim damages against sales agencies and developers," and argued, "They had us sign suddenly, only saying actual residence was possible without explaining the mandatory performance fines."
They said, "When touring the model house, they explained that this room was for children and described it as for residential use. Who would have thought it was an accommodation facility? We intended to buy a home to live in, not to run a lodging business in downtown, which is not even a tourist area, for 700-800 million won."
They added, "We are facing situations where we must even give up on personal bankruptcy and childbirth plans, and the risk of bad credit is becoming a reality. We urge the mayor of Changwon to convey the difficulties and injustices faced by Changwon citizens to the government and the National Assembly and propose an amendment to the quasi-housing system."
After the press conference, they delivered a written appeal containing their demands to the mayor of Changwon.
Lifestyle accommodation facilities are a hybrid between hotels and officetels, and under the Public Health Control Act, they are classified as accommodation businesses, so they cannot be used as residential housing and must be registered and used for lodging purposes.
If Saengsuk is used for residential purposes, under the Building Act, a mandatory performance fine of 10% of the officially announced price is imposed annually.
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