Changwon Special City in Gyeongnam will revise its district unit plan to support the legal conversion of residential lodging facilities into officetels.
The city announced on the 26th that it held a joint urban and architectural committee meeting on the 24th and passed a proposal to amend the district unit plan to allow for the legal use of residential lodging facilities.
According to the amendment, while previously additional parking facilities had to be installed when changing the use of residential lodging facilities to officetels, this requirement can now be waived if public facilities equivalent in value to the parking installation costs are donated to the city.
Additionally, the regulation requiring the donation to be completed before the building’s completion has been relaxed. Now, if a performance guarantee document is submitted, the donation can be fulfilled even after completion.
Residential lodging facilities are classified as commercial under the Building Act and as lodging facilities under the Public Health Control Act, so actual residential use is not permitted. However, after registering for business, both short- and long-term stays, as well as cooking and laundry, are allowed similar to hotels.
As more people have begun using these facilities for residential purposes like apartments or officetels, the government revised the Enforcement Decree of the Building Act to mandate registration as lodging businesses for such facilities. If registration is not completed after the grace period for changing use, an annual enforcement fine amounting to 10% of the publicly announced property value is imposed.
A residential lodging facility in Sangnam-dong, Seongsan-gu, Changwon City, Gyeongnam. Photo by Lee Seryeong
In response, prospective residents (buyers) of the residential lodging facility "Hillstate Changwon Central" in Sangnam-dong, Seongsan-gu, Changwon, have continuously requested the city to recognize the facility as an officetel.
Changwon City has been working to revise the district unit plan, taking into account fairness with existing officetels and the parking shortage in commercial areas.
Jang Geumyong, acting mayor, explained, "This revision of the district unit plan is a measure to align with the government’s policy direction for the legal use of residential lodging facilities, to support the legal use by owners and buyers, and to address practical issues in Changwon’s urban planning."
He added, "We will continue to do our best to improve various systems that reflect both government policy directions and the practical needs of local residents."
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