Changwon Special City Urges Caution When Joining Local Housing Cooperatives

Precautionary Guidelines and Banner Display

Changwon Special City in South Gyeongsang Province has issued a warning regarding local housing cooperatives, emphasizing that joining such cooperatives requires particular caution. The city noted that these projects often lead to civil and criminal complaints, lawsuits, and not only result in property losses but also cause psychological harm to participants.

Local housing cooperatives have gained attention as an alternative means of home ownership. However, since members are recruited before matters such as land acquisition, sale prices, and unit allocations are finalized in the early stages of the project, there is a high likelihood of unexpected additional contributions, project delays, and disputes arising during the development process.

Delays in land acquisition, changes in business plans, and internal management corruption are also major reasons for damages suffered by cooperative members. In many cases, withdrawal and refunds are restricted, making it essential to thoroughly review the cooperative's bylaws and contract details before joining.

In response, Changwon Special City has advised citizens to confirm the status of land ownership and usage rights before joining a cooperative; carefully review refund conditions and unfavorable clauses in contracts and bylaws; recognize that the business plan is not finalized and avoid excessive investment; and demand information disclosure and exercise rights to ensure transparent cooperative management.

Lee Jaekwang, Director of Urban Policy, stated, "Local housing cooperatives present opportunities, but they also involve a highly risky business structure. We urge citizens to make prudent decisions and gather sufficient information in advance before deciding to join."