"Support Remodeling Like Reconstruction," Oh Sehoon's Pledge Raises Industry Hopes... Will Remodeling Restrictions Be Lifted?

"It Was Remodeling Day"... Mayor Oh's Remarks Stir Excitement
Long Sidelined by Reconstruction, Remodeling Got Little Regulatory Relief or Support
Seoul Nears Completion of Remodeling Guidelines

Expectations are growing that remodeling projects in Seoul will accelerate, following Seoul Mayor Oh Se-hoon’s recent pledge to actively support them. Attention is focused on whether the city will introduce practical support measures, including regulatory relief and financial assistance, alongside its upcoming initiatives to promote remodeling.

Seoul Mayor Oh Sehoon speaks at a press conference marking his first 100 days in office at Seoul City Hall on the 7th. (Photo=Yonhap News)

According to industry sources on October 11, remodeling cooperatives across Seoul are hopeful that conditions for their projects could change following Mayor Oh’s remarks about promoting remodeling. The industry is watching for a policy shift by the city because of a widespread perception that remodeling has long received less attention than reconstruction.

Seo Jeongtae, chairman of the Seoul Remodeling Housing Cooperative Council, said, “After Mayor Oh’s remarks, many cooperative heads contacted me, and they were very pleased. It was practically Remodeling Day.” He added, “Given how strongly Mayor Oh put it, I think the working-level officials will prepare measures in a positive direction.”

At a press conference marking his 100th day in office on October 7, Mayor Oh was asked about delays in announcing Seoul’s proposed remodeling guidelines. He said, “It is true that remodeling has been held back,” adding, “Now that most projects have shifted toward reconstruction, there is no reason to unnecessarily restrict remodeling.”

He continued, “Since the start of my ninth popularly elected administration, I have repeatedly instructed the relevant departments to support and promote remodeling as much as reconstruction. I will share the details once I receive a concrete report soon.”

In practice, remodeling projects have struggled to make progress under Mayor Oh. Unlike his predecessor, Park Won-soon, the Seoul Metropolitan Government has focused its policy efforts on increasing the housing supply by promoting reconstruction. As a result, remodeling has often been sidelined during various reviews and the project development process.

Since returning to office in 2021, Mayor Oh has substantially eased regulations on reconstruction and redevelopment, including through the Fast-Track Integrated Planning program. As a result, an average of 35 new urban renewal districts have been designated annually over the past five years, about twice the average for the preceding 10 years. Urban renewal projects are currently underway at 496 sites across Seoul.

By contrast, many have criticized the preliminary consultation process introduced during Mayor Oh’s tenure, saying it has actually delayed remodeling projects. Under the process, the Seoul Metropolitan Government’s joint urban planning and architecture committee reviews project plans before they undergo architectural review. The city says the process is intended to ensure project stability, but on the ground, it can add several months to the process and is cited as one cause of delays.

Because remodeling receives less support than reconstruction, some projects end up wavering between the two approaches and losing time. After Mayor Oh won reelection in June, many residents at some sites pursuing remodeling reportedly voiced concerns that they might need to switch to reconstruction even at this point.

A representative of a remodeling project in Seoul said, “Several sites have switched from remodeling to reconstruction due to opposition from residents and other factors. However, reconstruction is only viable if the project has sufficient feasibility, including an adequate floor area ratio. Some projects will waste time only to change direction again, which will delay them even further.”

Managers conduct a safety inspection at an apartment construction site in Gyeonggi Province. / Photo by Kim Hyunmin, kimhyun81@

Industry sources say Seoul should first finalize its remodeling guidelines as soon as possible. The viability and pace of individual projects could depend on how the city sets review criteria and detailed guidelines for remodeling.

An industry source said, “Each site is preparing for review in line with the city’s guidelines, but the announcement keeps being postponed, delaying the reviews. We will not know whether the city’s regulations are actually being eased until the guidelines are released.”

Expanding financial support is also a key industry demand. Remodeling cooperatives often rely on loans from construction companies in the early stages of a project. However, cooperative heads and executives must provide joint guarantees, and restrictions on loan limits and how the funds can be used make it difficult to manage financing.

Chairman Seo said, “Seoul provides financial support for urban renewal projects, but remodeling is excluded. If the city introduces low-interest financing, remodeling projects could also move forward more quickly.”

A Seoul Metropolitan Government official said, “We were instructed to promote remodeling, and we have nearly completed the proposed guidelines accordingly. We are now consulting with the relevant departments.”

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