Dongjak District Becomes First Local Government to Support Relocation Complexes Nationwide... Utilizes Modular Housing

A Structure with No Additional Cost Burden for Cooperatives

On March 30, Dongjak District in Seoul (Mayor Park Ilha) announced that it would become the first local government in the country to support the establishment of relocation complexes in order to address the relocation issue, which is considered the biggest challenge in redevelopment and reconstruction projects.

Park Ilha, Mayor of Dongjak District (third from left), took a commemorative photo with representatives from various organizations including Korea Land Trust, Namseong Station North Station Area Revitalization Project Maintenance Committee, JP Asset Management Co., Ltd., Yuchang E&C Co., Ltd., and Dongjak Corporation at the "Namseong Station North Station Area Revitalization Project Relocation Complex Creation Business Agreement Ceremony" held at Dongjak District Office on the 27th. Provided by Dongjak District.

On the 27th, the district signed a "relocation housing establishment business agreement" with Dongjak Corporation, JP Asset Management Co., Ltd., Yuchang E&C Co., Ltd., and the Redevelopment Committee for the North Exit Station Area Activation Project at Namseong Station in the Vision Conference Room at the district office.

This agreement was promoted based on the "Dongjak-style Development Project Management Plan" established by the district in June last year. The plan serves as a policy roadmap aimed at overcoming the limitations of the district's steep terrain and inducing systematic development throughout the entire area. Its main points include flatland-oriented design, pre-establishment of relocation complexes, improvement of appraisal methods, protection for rental income earners, and introduction of trust-based methods.

The parties to the agreement have decided to pilot the pre-establishment of a relocation complex in the "Namseong Station North Exit Station Area Activation Project" (around 252-15 Sadang-dong). Roles were clearly divided: the district will set policy directions and review relevant laws and regulations; Dongjak Corporation will oversee the relocation housing project and manage rentals; JP Asset Management Co., Ltd. is responsible for attracting private investment and designing financial structures such as funds and SPCs; and the Redevelopment Committee will share information on relocation demand and coordinate related measures.

Yuchang E&C Co., Ltd., the construction company, will apply a modular housing approach. This method involves transporting modular units, more than 80% of which are manufactured in factories, to the site for assembly, with the goal of both shortening the construction period and improving building efficiency.

The district is currently considering utilizing the Maesil Parking Lot site (around 335-7 Sangdo-dong) to build approximately 30 relocation housing units. Dongjak Corporation plans to operate these units under a master lease system, thereby establishing a stable response system for relocation demand.

Due to the structure of the project, there will be no additional cost burden on project implementers such as housing cooperatives. The intent is for the public sector to directly ease the relocation burden, especially as relocation loans have become difficult to obtain because of tighter financial regulations, such as the October 15 Real Estate Measures. The district also plans to strengthen protections for vulnerable groups by preparing measures that include tenants who moved in after the rights determination date.

Mayor Park Ilha of Dongjak District stated, "The relocation issue is the biggest obstacle slowing down redevelopment projects," adding, "Through the 'Dongjak-style relocation complex model,' we will dramatically improve the pace of redevelopment by actively supporting relocation through public initiatives."

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