Consent Threshold for Association Formation to Be Lowered at 'Bottleneck' Stage... 16 Redevelopment Associations in Seoul Will Benefit

Consent Requirement for Association Formation to Drop from 75% to 70%
16 Early-Stage Zones and 3,700 Households to Benefit
Ministry of Land Shifts Stance to Accelerate Housing Supply
Bottleneck for Long-Delayed Early Projects Expected to Ease

The government is set to ease regulations by lowering the consent rate required for forming a redevelopment association from the current 75% to 70%, benefiting around 3,700 households in 16 redevelopment zones within Seoul. Currently, the 70% consent rate applies only to reconstruction projects, but the plan is to relax the requirements for redevelopment as well. The 70% range for redevelopment consent is known as the “final hurdle” due to the difficulty of securing approvals. If the threshold is lowered, it is expected that many early-stage redevelopment projects will accelerate significantly.

Villa complex in downtown Seoul. Photo by Yonhap News Agency

According to a comprehensive survey conducted by The Asia Business Daily on the status of private redevelopment projects in Seoul as of August 20, there are a total of 68 private redevelopment zones in the pre-association phase. Among these, 31 zones have formed promotion committees and are preparing to establish associations. Of these, 15 zones have either already established associations this year or have secured consent rates of 75% or higher and are about to hold their inaugural general meetings.

The other 16 associations are currently in the process of collecting consent forms for establishment. In terms of households, this equates to approximately 3,700 households. For each association, Yongdu 7 and Yongdu 6 zones in Dongdaemun District have secured consent rates of 68% and about 70%, respectively. The Dangsan 1 zone in Yeongdeungpo District has a consent rate in the high 60% range, while the Cheongnyangni 9 zone, whose promotion committee was established in January, has secured a 52% consent rate to date.

In the National Assembly, a bipartisan consensus has formed and the legislative process for revisions is underway. In January, Chun Jun-ho of the Democratic Party and Eom Tae-young of the People Power Party each sponsored an “Amendment to the Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents,” which focuses on easing the consent rate requirement. The bills have been referred to the Land, Infrastructure and Transport Committee’s subcommittee on bill review.

Even until earlier this year, the Ministry of Land, Infrastructure and Transport had been cautious about amending the law. Unlike reconstruction projects, redevelopment allows for land expropriation, which could more severely limit property rights and potentially increase conflicts among residents if the consent rate is lowered. The legislative review report for the amendment sponsored by Assemblyman Chun also pointed out concerns that opportunities for residents opposing the project to express their views could be reduced, emphasizing the need for careful discussion. However, with the growing need for rapid housing supply, the August 13 supply plan included the consent rate easing for association establishment.

The urban renewal industry expects that even lowering the consent rate to 70% will dramatically accelerate early-stage projects. Securing consent rates between 70% and 75% during the association formation process is known to be particularly challenging and is often cited as a key cause of project delays. As a result, while projects proceed smoothly up to the promotion committee stage—which only requires a 50% consent rate—progress often slows dramatically just before association establishment. For example, the Changsin 4-1 area in Jongno District and the Yongsan Station Front 1-2 area in Yongsan District have been unable to advance to the association formation stage for almost a decade since forming their promotion committees.

Kim Sungkyung, head of the Cheongnyangni 9 Promotion Committee, said, “There are numerous cases at redevelopment sites where the association could not be formed and progress is delayed due to being just 1–2% short of the required consent rate. Even lowering the standard by just 5 percentage points would be a significant help to associations currently collecting consent forms.” Lee Jaeki, head of the Yongdu 6 Promotion Committee, where an association was established in 2012, said, “We have secured a 68% consent rate, and with cooperation from just three more households, we can begin the association formation process. If the legal requirement is lowered to 70%, the burden on us will be greatly reduced.”

Experts predict that lowering the consent rate will serve as a catalyst to resolve bottlenecks in early-stage projects. Baek Jun, CEO of J&K Urban Maintenance, explained, “Even after promotion committees are formed, there are areas all over Seoul where projects have been delayed for long periods due to failure to secure sufficient consent amid member conflicts. The measure will be very effective in easing blockages at the early stages of such projects.”

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