Seoul to Lower Subsidy Consent Rate for Direct Association Establishment to 50%

Simplified Procedures for Simultaneous Collection of Consent Forms
for Association Establishment and Preparatory Committee Formation

The Seoul Metropolitan Government will significantly ease the requirements for subsidies supporting the direct establishment of housing associations, lowering the resident consent rate from 75% to 50%.

Old downtown area of Changsin-dong, Jongno-gu, and redevelopment apartment complex in Hwanghak-dong, Jung-gu, viewed from Hanyangdoseong. Photo by Younghan Heo

On the 30th, the Seoul Metropolitan Government announced that it had finalized a detailed implementation plan to relax the subsidy criteria for the direct establishment of housing associations, as part of its 115th regulatory reform initiative in April. This is the first time the subsidy criteria have been eased since the direct establishment system was introduced in 2016.

Previously, subsidies were only provided when the resident consent rate for direct association establishment exceeded 75%. Now, the threshold has been lowered to 50%, broadening the range of eligible recipients.

The subsidy criteria had been aligned with the Urban Renewal Act’s requirement of a 75% resident consent rate for association establishment. However, to accelerate project timelines by promoting the direct establishment of associations, the city lowered the requirement from 75% to 50%. This will allow project sites pursuing direct association establishment to obtain official approval more quickly.

The city has also prepared countermeasures for situations where, after receiving subsidies under the relaxed criteria, the legal 75% consent rate is not met and the process reverts to forming a preparatory committee. To prevent project delays, the procedure for collecting consent forms has been changed to simultaneously gather both 'association establishment consent forms' and 'preparatory committee formation consent forms'.

Forming a preparatory committee typically takes about six months, with two months spent collecting consent forms. If the process reverts to committee formation, the two-month reduction means the committee can be formed in approximately four months.

Choi Jinseok, Director of Housing for the Seoul Metropolitan Government, stated, "Regulatory Reform No. 115 is a measure to strengthen the effectiveness of enabling associations to be established more quickly," adding, "By accelerating the establishment of associations, we will shorten urban renewal project timelines and expedite the stable supply of housing."