"Supplying 370,000 Households Just by Proper Remodeling" Remodeling Convergence Society

In 2023, 57% of Houses Are Aged
Remodeling 20% of Demand Households
Can Supply 371,000 Households
"Limitations in Solving Aging Issues with Reconstruction Alone"

There is a claim that activating remodeling for aging houses can have the effect of supplying about 370,000 households. The government announced plans to supply 420,000 households in Seoul and the metropolitan area over the next six years, but it is said that a similar effect can be achieved just by properly implementing remodeling projects.

The Korea Remodeling Convergence Society (KRC) held a policy seminar related to remodeling on the 25th at the Korea Institute of Architects in Seocho-gu.

The Korea Remodeling Convergence Society held a remodeling policy seminar on the 25th at the Architectural Institute of Korea located in Seocho-gu. Provided by the Korea Remodeling Convergence Society.

When 30% of Demand Households Undergo Remodeling... Effect of Supplying 558,000 Households

At the seminar, the housing supply effect from remodeling was a key topic. Among the 15 local governments that have established basic remodeling plans, the demand for remodeling that increases the number of households is counted at 2,258 complexes. In terms of the number of households, this amounts to 1,617,943 households. Assuming the number of households is increased up to the current legal limit under the Housing Act (within 15%), the number of households would increase to 1,866,000.

Lee Dong-hoon, CEO of Muhan Architecture, who gave the presentation, stated, "Assuming remodeling is executed for 20% of the demand households (for household number-increasing remodeling), the effect would be supplying about 371,000 households." If remodeling is implemented for 10% and 30% of the demand households respectively, the supply effect would be about 186,000 households and 558,000 households. Lee added, "If remodeling is assumed to be implemented at 30%, it would supply far more households than the government's target supply of 420,000 households."

The Korea Remodeling Convergence Society held a remodeling policy seminar on the 25th at the Architectural Institute of Korea located in Seocho-gu. Provided by the Korea Remodeling Convergence Society.

There was also a suggestion that the focus should shift away from reconstruction-centered redevelopment projects considering the aging speed of apartment complexes. Remodeling and reconstruction projects should be used complementarily in terms of redevelopment projects.

Kim Jin-young, a professor in the Department of Architecture at Ajou University, said, "As of 2022, the proportion of houses over 30 years old among all houses nationwide is 22.3% (2.25 million households)," and added, "By 2032, that proportion will expand to 56.8% (about 5.73 million households)."

Professor Kim continued, "It is difficult to cope with the aging speed of apartment complexes with reconstruction projects alone," emphasizing, "A comprehensive analysis of the characteristics and economic feasibility of each complex should be conducted to compare reconstruction and remodeling, and the redevelopment project with higher feasibility should be promoted."

Business Difficulties Due to Strengthened Regulations... Need for Institutional Integration of Reconstruction and Remodeling

Voices calling for government deregulation to activate remodeling projects were also raised. Currently, remodeling projects are facing difficulties progressing due to strengthened government regulations on structural safety. In 2023, the government included vertical extension remodeling?which involves installing pilotis and adding one floor on the top floor without increasing the number of households?as an additional safety regulation target.

Ryu Chang-gon, the head of the Jamwon Hanshin Royal Apartment union, which is the first in the Gangnam area of Seoul to pursue vertical extension remodeling, said, "The project is delayed and the union bears enormous costs due to frequently changing laws and unilateral administrative measures without transitional provisions," emphasizing, "Since safety should be addressed through science and technology, we expect the government to conduct a forward-looking review."

There was also an opinion that policies should be prepared to allow residents to choose between remodeling and reconstruction according to their demands and the aging level of housing. Park Se-hee, CEO of Jian Architecture, said, "In the era of increasing aging houses, population decline, and low growth, reconstruction and remodeling should operate as complementary policies," adding, "Legal and institutional integration is necessary to allow switching from remodeling to reconstruction or from reconstruction to remodeling according to the housing lifecycle and aging level."