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Seocho-gu, Nationwide First to Establish 'Unliquidated Reconstruction Association Liquidation System'

Establishment of Proactive Management Plan for Unsettled Union Management Rights Assigned to Districts
Preparation of Seocho-style Liquidation Traffic Light and Liquidation Blueprint

Seocho-gu, Nationwide First to Establish 'Unliquidated Reconstruction Association Liquidation System'

Seocho-gu, Seoul (Mayor Jeon Seong-su) announced on the 30th that it has established the nation's first liquidation system for unresolved reconstruction associations to prevent damages to reconstruction association members and to expedite the settlement of redevelopment projects.


Following the amendment of the Urban Maintenance Act in June, which granted the district authority supervisory rights over unresolved associations, Seocho-gu took the initiative to create a systematic management plan at the practical level due to the absence of such measures.


The unresolved reconstruction association liquidation system consists of two components: the management plan called the "Seocho-type Liquidation Traffic Light" and the policy improvement plan called the "Seocho-type Liquidation Blueprint." The "Seocho-type Liquidation Traffic Light" categorizes each project site into three stages?'Interest,' 'Caution,' and 'Serious'?based on the progress of liquidation, and promotes smooth liquidation through tailored management approaches: 'autonomous (monitoring),' 'indirect (conflict mediation),' and 'direct (official intervention)' according to each stage.


The Interest stage applies to associations where liquidation procedures are progressing without issues; the district guarantees the autonomy of these associations while conducting monthly monitoring. The Caution stage includes associations that have exceeded three years post-dissolution, have received complaints, or have vacant liquidator positions. The district manages these indirectly by providing advisory support through a customized expert support team for liquidation.


The Serious stage involves associations where the project entity is unable to perform duties or fails to comply with legal obligations; the district directly intervenes by conducting on-site investigations and corrective actions until the association is normalized.


The customized expert support team for liquidation, utilizing the existing pool of professionals, will operate starting November. Comprising 8 to 10 experts in related fields such as tax and accounting, the team will provide legal advice and solutions for disputes arising during the liquidation phase to support prompt association liquidation.

Seocho-gu, Nationwide First to Establish 'Unliquidated Reconstruction Association Liquidation System'

The "Seocho-type Liquidation Blueprint" is an improvement plan designed to establish a virtuous cycle by compiling opinions from association representative liquidators and related experts, supplementing deficiencies in current laws and procedures, organizing preemptive control measures, and recording and sharing liquidation case studies through the production of a white paper.


To assess the current situation, policy sharing sessions and "Visiting Reconstruction Concerts" are held for representatives of unresolved associations in the area, and deficiencies in existing laws and procedures are addressed to derive management plans. Additionally, the Seocho White Paper on exemplary liquidation cases will be produced and utilized for policy improvements.


The district expects that by establishing this management plan, it will prevent disputes during the liquidation phase, provide predictable administrative services, and induce efficient association liquidation.


Among the 96 reconstruction redevelopment project sites in Seocho-gu, there are a total of 13 unresolved reconstruction associations, with liquidation delayed due to residual tasks such as lawsuits, tax refunds, and debt repayments. As liquidation delays restrict members' property rights and impose economic burdens, complaints requesting administrative support to the district office are increasing.


To prepare the management plan, the district conducted a four-month comprehensive survey of unresolved associations, visited associations, held meetings with liquidation committee chairs, conducted on-site meetings with complainants, held work meetings with Seoul City's liquidation department, and sought expert advice.


Mayor Jeon Seong-su stated, "By establishing a management plan for unresolved associations at the autonomous district level, which is the frontline contact point with residents, we have ensured solid support through the final liquidation phase of reconstruction." He added, "We will take this as an opportunity to emphasize swift reconstruction and strive to make Seocho-gu an even better city to live in."


© The Asia Business Daily(www.asiae.co.kr). All rights reserved.

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