Seocho-gu, the First in the Nation to Establish a Reconstruction Association Liquidation System
Preemptive Control Measures Prepared and Implemented from This Month
"We liquidated the association one and a half years after the apartment move-in was completed. People around us advised against it. After the liquidation, due to a lawsuit filed by one of the association members, I am now bearing the litigation costs personally. I have been taking psychiatric medication for several years." (Mr. B, Liquidation Committee Chair of A Apartment in Seocho-gu)
"Ultimately, the reason we cannot liquidate the association is because of lawsuits. We won 3 out of 5 cases, but one case is still ongoing. Lawsuits are frequent, and court rulings take years to come. The statute of limitations for corporate and national taxes is also five years. After liquidation, who takes responsibility for those costs and outcomes? The law needs to be revised first. If I were to be born again, I would not become an association chair." (Mr. D, Liquidation Committee Chair of C Apartment)
Seocho-gu Mayor Jeon Seong-su (first from the left in the photo), who held a reconstruction association liquidation meeting, is explaining the purpose of the new system to the liquidation committee chairpersons of the reconstruction complexes. Provided by Seocho-gu.
Chairpersons of well-known apartment complexes such as One Bailey, Acro River Park, and Raemian Leaders One gathered on the 19th at the Seocho-gu Office large conference room. They sat face-to-face with the 'Tailored Expert Support Group for Liquidation,' composed of Seocho-gu officials, accountants, lawyers, architects, and representatives of maintenance companies appointed by the district.
This meeting was arranged by Seocho-gu, which created the nation's first 'Unliquidated Reconstruction Association Liquidation System,' to hear from representatives who served as association chairs during reconstruction and are now in charge of liquidation. The district plans to listen not only to the complaints of citizens but also to these opinions to implement more refined management measures for liquidation associations.
Among the 96 reconstruction maintenance projects promoted by Seocho-gu, 13 are unliquidated reconstruction associations. Nine of these attended the meeting. The association chairs, who took charge of liquidation after apartment move-ins were completed, each expressed their difficulties. The common reason they cited for the inability to promptly liquidate reconstruction associations was litigation issues.
Mr. Park Jae-geun, Liquidation Committee Chair of Seocho Woosung 1st Complex (Raemian Leaders One), said, "We are responding to lawsuits related to local taxes and maintenance companies." Mr. Ahn Ki-sung, Liquidation Committee Chair of Seocho Hanyang (Banpo Raemian I-Park), also said, "If a lawsuit is filed after liquidation, the association chair ends up bearing all the responsibility. We need to fix the flawed laws to resolve these problems."
They emphasized that disputes with emergency committees, commercial property owners, and construction companies ultimately come down to money issues. They called for revising the patchwork reconstruction-related laws by reflecting voices from the field and for more active intervention by authorities to mediate conflicts.
Starting this month, Seocho-gu is implementing the 'Seocho-type Liquidation Traffic Light' system, which classifies corporations that have not liquidated even after apartment completion into stages of Interest (self-management), Caution (indirect management), and Serious (direct management), managing them step-by-step until liquidation is completed. This is a follow-up measure after the June amendment of the Urban Maintenance Act, which granted autonomous districts the authority to manage and supervise unliquidated associations, marking a nationwide first.
In particular, for associations in the Serious stage, the district plans to intervene directly, conducting on-site investigations and corrective actions until the association is normalized. From this month, rapid liquidation support will be provided through the liquidation expert support group.
At the meeting, Jeon Seong-su, the district mayor, said, "This gathering is a starting point for the three parties?citizens, government, and experts?to put their heads together and find solutions. We plan to listen to the opinions of association representatives and experts and work to supplement deficiencies in current laws and procedures."
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