Eunma Association Members Face Estimated '460 Million Won' Reconstruction Charge Each... Project at Risk

Eunma Apartment in Gangnam-gu, Seoul. Oct. 13, 2025. Photo by Kang Jinhyung

The reconstruction association for Eunma Apartment in Gangnam-gu, Seoul, has been notified of a preliminary reconstruction excess profit recovery charge of about 2 trillion 4.4 billion won. The estimated charge per association member is well over 400 million won. With members' costs already rising sharply due to recent increases in construction and financing costs, concerns are growing that the project schedule could be disrupted by the expected charge of more than 400 million won per member.

According to the redevelopment industry on Nov. 6, Gangnam-gu recently sent the Eunma Apartment reconstruction association a notice detailing the criteria for calculating the reconstruction charge and its estimated amount. The notice puts the total estimated charge at about 2 trillion 4.4 billion won. Divided by the number of association members, this comes to an average of about 463.34 million won per member.

The Reconstruction Excess Profit Recovery System recoups part of the profits generated by reconstruction through a charge, after deducting normal housing price increases and development costs. Eunma Apartment is pursuing a reconstruction project to build 5,850 units, with buildings reaching up to 49 stories. The project became subject to an estimate of the reconstruction charge after receiving approval for its project implementation plan in July.

The amount notified to the Eunma Apartment association by Gangnam-gu is not the final charge. It is calculated based on projected profits, and the actual amount will be determined after completion, taking into account apartment prices and construction costs. Local government heads must calculate the charge and notify the association within five months of project completion. Seocho-gu recently gave advance notice of the estimated reconstruction charge to the Banpo Hyundai reconstruction complex, now Banpo Centervill Asterium, but no complex has paid the charge yet.

Tension is mounting in the redevelopment industry as the imposition of reconstruction charges becomes a reality. With additional contributions from association members already rising sharply due to higher construction costs, adding the reconstruction charge could make it uncertain whether projects can proceed. In fact, many association members argue that the system should be abolished, saying that imposing charges on profits that have not yet been realized could infringe on private property rights.

On Nov. 4, Seocho-gu also submitted a proposal calling for the abolition of the system and a petition from residents to the Ministry of Land, Infrastructure and Transport. Seocho-gu described the system as "a killer regulation that causes arterial hardening in housing supply" and stressed that the criteria for calculating charges, including how normal housing price increases are measured, should be reviewed to reflect current realities.

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