The urban renewal project is a public project aimed at improving the residential environment upgrading the existing residential area so it may come into conflict with many of those who are concerned and therefore it is necessary to coordinate mutual i...
The urban renewal project is a public project aimed at improving the residential environment upgrading the existing residential area so it may come into conflict with many of those who are concerned and therefore it is necessary to coordinate mutual interest of those who are concerned precisely to carry out the project by minimizing the side-effect. Especially, our society has experienced many side effects with lots of different disputes losing so valuable life due to the propulsion of the upgrading project so-called ‘redevelopment’ in 1970s, 1980s and 1990s. This was repeated by the Yongsan tragedy that sacrificed valuable lives of 6 persons (5 persons of the dispossessed and 1 police officer) died recently.
The discord and main issues between those who are concerned were the rental housing and compensation between tenants of the dispossessed and redevelopment association before when the urban renewal project so called the new town project was announced. However, the phase of the dispute is now much different since the new town project was introduced back in 2002. That is, the dispute between the owners of land, etc. has been accelerated as the new residential percentage for the new apartment is decreased due to the upgrading project and poor condition of the project caused by increase in land price and dividing the share, etc. when all the existing good residential areas were designated as an upgrading promotion zone. Gilum new town, for instance, has been the social issue because of the settlement percentage of the original residents showing around 15%.
The most key issue relating to the settlement percentage of the original residents is the share of the cost by the land owner, etc. Usually the urban renewal project adopts a profitable project method for the apartment construction guaranteeing the land, etc. as the land owners establish the renewal project association. Here the most important point is a profit come from the sale but the additional share amount to be paid by the land owners (member of association) is increased as the sale profit is relatively decreased due to the reduced sale volume for ordinary sale. Land owners who are doomed to paying the additional share amount for hundreds of million Wons move to other areas by the option to clear by cash, etc. as they can't get into the new apartment again simply because of the old age, low economic income and poor financial conditions to pay such an additional share amount.
On the other hand, since Establishing Promotion Committee for the Renewal Project Association pushes the renewal project by providing the wrong information on the obscured income of the development without giving the information on the additional share amount in the course of establishing the association, those association members who recognized the fact that they will be facing with the huge amount of the additional share amount in the future are resisting against it causing many lawsuits and disputes arising. Moreover, its relating disputes are made caused by the huge amount of additional share cost because of the lower appraisement than the individual appraisal value expected by residents in the course of the management disposal.
The cost sharing related dispute is now become one of the most key issues in the urban renewal project and unless any solution or countermeasures for this issue are presented many different social expenses will be wasted continuously paying for the price of discontinuance of the renewal project caused by the same disputes, waste of huge amount of the administrative expenses and property losses of the land owners within the renewal area, etc.