26th KRC '2024 Annual Seminar'
"Remodeling, Good Profitability in Preparation for Reconstruction"
Increase in Remodeling Demand Inevitable
Claims of Safety for '1st Floor Pilotis Structure'
Shin Dong-woo, president of the Remodeling Convergence Society, stated at the annual seminar hosted by the Korea Remodeling Convergence Society (KRC) held at Seoul National University of Science and Technology on the 26th, "Each complex has different project conditions, and even if the floor area ratio is relaxed, it is impossible to redevelop all complexes through reconstruction." He added, "For genuine residential environment improvement, residents should be able to choose the maintenance project method themselves, whether it be reconstruction, remodeling, or maintenance." On that day, President Shin argued that remodeling projects are more viable compared to reconstruction based on an analysis of the business feasibility of remodeling and reconstruction for about 100 aging complexes in the metropolitan area.
The Korea Remodeling Convergence Society (KRC) held its annual seminar on the theme of "Remodeling in the Era of 5 Million Aging Apartments" on the 26th at Seoul National University of Science and Technology. Photo by Kwon Hyunji
Chae Sang-wook, CEO of Connected Ground (real estate analyst), also said, "In 2022, then-presidential candidate Yoon Seok-yeol's campaign included reconstruction and remodeling policies at an equal level, but after the 2023 proposal of the Special Act on Aging Planned Cities, the policy trend shifted toward reconstruction," expressing concern that "a reconstruction-centered approach is likely to impose a significant burden on the housing market in the future." He emphasized, "Leveling of maintenance projects considering the housing lifecycle and lifespan is necessary."
"Demand for Remodeling Will Increase"
They viewed that although the government is focusing on reconstruction, demand for remodeling in the market is bound to increase. This is because remodeling is advantageous over reconstruction in various aspects such as cost, resident convenience, and environment. Ok Jong-ho, professor emeritus at Seoul National University of Science and Technology, said, "There are not many buyers who can afford the enormous reconstruction contributions, so in the long term, remodeling demand will inevitably continue to grow." In particular, Ma Jung-geun, CEO of Gye-Young Innovation, stated, "When refurbishing public rental housing, it is necessary to consider remodeling methods," evaluating that "it minimizes relocation and can be completed in a short period, reducing the burden on original residents, and is advantageous in terms of funding and business feasibility."
Park Jin-chul, president of the Architectural Institute of Korea, said, "Major policies announced by the Intergovernmental Panel on Climate Change (IPCC) and the European Commission also place more emphasis on remodeling," adding, "Remodeling is highly important as a maintenance policy in the carbon-neutral era."
An expert panel discussion is underway at the annual seminar hosted by the Korea Remodeling Convergence Society (KRC) on the theme of "Remodeling in the Era of 5 Million Aging Apartments," held on the 26th at Seoul National University of Science and Technology. Photo by KRC
"Enhance Product Value to Prepare for the Future"
Regarding the challenges of the remodeling market in preparation for this, Professor Ok suggested, "Efforts should be made to enhance the value of remodeling products and supply them to the market," and recommended, "Thorough preparations are needed to reduce scattered dust and toxic substances from waste cement generated during remodeling demolition work." He cited the U.S. 'Healthy Building Certification System' as a reference case. CEO Ma emphasized, "Securing business feasibility of remodeling through an increase in the number of households is important," and stressed, "Research and regular seminars should be conducted for related law amendments."
Professor Lee Sang-hyun of Dankook University commented on the safety of pilotis structures, saying, "The pilotis applied in remodeling is structurally a different concept from that of general buildings," and added, "When reviewing structural safety, it is reasonable to base it on the number of floors added compared to the original structure, not simply the increased number of floors." For example, when raising a building from 4 floors to 8 floors, the load increases significantly, but when adding one floor to a 15-floor building, the change is minimal. This is a rebuttal to the Ministry of Government Legislation's interpretation that 'pilotis structures correspond to vertical extension remodeling.' According to this interpretation, currently, complexes that have received a safety diagnosis grade of 'C' or higher cannot add one vertical floor.
Professor Ok said, "The current remodeling system has not changed significantly compared to the 2000s, so continuous discussion is necessary," and expressed hope that "remodeling will be treated as an important policy for residential environment improvement through this policy seminar."
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