[Exclusive] "Focused on Legal Explanations"... Sacheon City’s Statement on Publicly Supported Private Rental Housing Sparks Criticism for 'Procedural Response'

Dispute Over Scope of Responsibility as Over 1,200 Claim Damages
Mediation and Support Measures Still Unclear

Confusion Over 'Public Support' Terminology Raised
Where Does the City's Oversight and Supervisory Responsibility End?

In Sacheon, South Gyeongsang Province, the official statement released by the Sacheon City government regarding the Sacheon Yesu-Hwajeon District Publicly Supported Private Rental Housing Project is facing criticism from the local community for being merely a "procedural response."

As around 1,200 cooperative members are claiming damages due to project delays and funding issues, there are concerns that the city's explanation has focused primarily on the scope of its legal responsibility.

In its statement, Sacheon City clarified that the project in question was a publicly supported private rental housing project undertaken by a private operator under the Special Act on Private Rental Housing and the Housing Act.

The city explained that it reviewed whether the legal requirements were met before approving the housing construction project plan, and that the permitting process was carried out in accordance with the relevant administrative procedures set forth by law.

The city also made it clear that the permitting process is a procedure for reviewing legal compliance, and is not structured to directly guarantee or take responsibility for the project's financing or feasibility.

In response, a residents' representative from the Emergency Committee for Damaged Cooperative Members criticized, "While many cooperative members are currently struggling with loan interest burdens and livelihood insecurity, the city's statement dedicates a significant portion to defining the scope of its legal responsibility."

The representative argued, "What is needed now is not a listing of legal provisions but rather concrete compensation measures and a clear implementation timeline," and called for a full survey of the damage scale, regular public disclosure of project progress, joint meetings with relevant agencies, and the establishment of legal and financial counseling services.

He further asserted, "Since the use of the term 'public support' and approval of the permits were leveraged to enhance the project's credibility, the administration cannot escape its moral responsibility."

In response, an official from the relevant department at Sacheon City stated, "This project is driven by a private operator, and the city's permitting role is limited to reviewing legal compliance." However, the official added, "Given concerns about potential harm to citizens, we are strengthening consultations with relevant agencies and seeking to mediate within the limits of our capacity."

Regarding the confusion surrounding the 'public support' designation, the city explained, "We have taken necessary administrative actions, such as reporting potentially misleading promotional expressions to relevant agencies and cracking down on illegal advertisements," and added, "We plan to propose institutional improvements to higher authorities to prevent similar cases from recurring."

Experts believe that the issue could escalate beyond a simple project delay to a matter directly affecting public trust in the administration. Regardless of whether legal liability is acknowledged, social debates are expected to continue over the extent of management responsibility as the permitting authority and the role of protecting citizens.

Sacheon City stated, "We will prioritize the protection of citizens' property rights and housing stability, and do our utmost to adhere to the law and principles." However, no specific implementation schedule or direct support measures have been presented yet.

It remains to be seen whether this controversy will expand into a dispute over the scope of administrative responsibility, or whether the situation will shift depending on the normalization of the project, as this will depend on the city's subsequent actions.

This content was produced with the assistance of AI translation services.