Regional Housing Cooperatives and Pre-sale Rights Not Permitted in Guryong Village by Regulation
No Eligible Recipients for Pre-sale Rights in Guryong Village
"Financial Losses Feared from So-called 'Muldakji' Transactions"
Seoul Housing and Communities Corporation (SH Corporation) announced that the sale of pre-sale rights in the Guryong Village urban development zone is not possible. They also urged special caution as trading of move-in rights is illegal.
On the 16th, SH Corporation stated that recently some residents have been claiming the possibility of promoting regional housing cooperatives and providing pre-sale rights, attempting so-called 'Muldakji' transactions. This is impossible under current regulations, and engaging in such transactions may result in significant financial losses.
In fact, SH Corporation has received numerous inquiries recently regarding the recruitment of members for regional housing cooperatives within Guryong Village. Requests for confirmation on whether pre-sale rights can be obtained through cooperative membership or purchasing 'Muldakji' have also continued.
According to the 'Relocation Measures Standards' announced by SH Corporation on November 30, 2023, there are no eligible recipients for pre-sale rights within the project area. SH Corporation stated that trading of pre-sale rights or move-in rights is subject to legal penalties under relevant regulations and laws.
Under the 'Special Act on Public Housing,' the 'Land Compensation Act,' and the relocation measures standards, to be eligible for pre-sale housing supply, one must be △a lawful building owner or △an owner of an unauthorized residential building constructed before January 24, 1989. There are no such eligible persons within Guryong Village.
Furthermore, according to Article 65 of the 'Housing Act,' the transfer or acquisition of move-in rights or other housing supply qualifications is explicitly prohibited. Violations may result in invalidation of move-in rights, cancellation of supply contracts, imprisonment for up to three years, or fines up to 30 million KRW (or three times the profit gained).
Based on Article 11 of the 'Housing Act,' the establishment of regional housing cooperatives in Guryong Village is also impossible. Guryong Village was designated as an urban development zone under 'Seoul City Notice No. 2016-397,' and SH Corporation is promoting an urban development project as the project implementer through expropriation or use.
Meanwhile, SH Corporation has prepared various support measures to encourage temporary relocation to rental housing for the swift relocation of Guryong Village residents, including △full exemption of rental deposit △60% reduction in rent (100% reduction for lower-income groups and basic livelihood security recipients). Currently, 751 out of a total of 1,107 households have completed early relocation.
The Guryong Village urban development zone is currently in the final stages of expropriation decisions. Land expropriation began on February 7, and SH Corporation has acquired ownership. Expropriation decisions for affected properties are expected to be completed by July. Gradual demolition will begin in the second half of the year.
Expropriation decisions are a system that allows compulsory acquisition of land or objects necessary for public projects, with just compensation, when voluntary purchase is not possible, protecting the property rights of owners.
Hwang Sang-ha, President of SH Corporation, said, "We are swiftly proceeding with compensation and relocation procedures to create a high-quality residential environment in Guryong Village as soon as possible," and added, "We ask citizens to be especially cautious to prevent damages caused by illegal activities such as so-called 'Muldakji' transactions."
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