Since 2012, pre-sale hotels called "Residence Hotels", have been expected to be used as an alternative to officetels representing profit of property amid low-interest rates trend. However, the supply of pre-sale hotels has increased and also being uns...
Since 2012, pre-sale hotels called "Residence Hotels", have been expected to be used as an alternative to officetels representing profit of property amid low-interest rates trend. However, the supply of pre-sale hotels has increased and also being unsold in pre-sale has increased rapidly, so various problems have arisen. In particular, contracts for pre-sale and consignment operation of pre-sale hotels were often concluded at the same time, and disputes began when the consignment operator did not pay the agreed profits to the buyers during actual operation after completion. In this situation, living accommodation facilities that can be rented and cooked without consignment to operators have been sold and have been - 87 - used as residential facilities to replace apartments amid soaring prices and government regulations in recent years, so living accommodation facilities, which were mainly supplied to tourist attractions, have begun to penetrate the city center. Living accommodation facilities could be used as residential property because government ministries didn't communicate well each other. The Ministry of Culture, Sports and Tourism and the Ministry of Health and Welfare thought living accommodation facilities(residences) were close to hotels and lodging businesses. While the Ministry of Land, Infrastructure and Transport was unable to give a clear authoritative interpretation of them, the Ministry of Public Administration and Security allowed domestic and foreigners to live in a long-term rental manner and the Ministry of Health and Welfare allowed the registration of living accommodation businesses by applying the Public Health Management Act. However, living accommodation facilities, classified as lodging businesses, were not included in the loan regulations and restrictions on resale. From the supplier's point of view, living accommodation facilities were attractive products for development projects. Unlike tourist hotels that cannot be sold in general or condominiums that can be sold by accounts after 20% of the fair rate, it was easy to raise business costs by pre-sale at the officetel level before construction, and parking spaces were classified as commercial facilities. Meanwhile, pre-sale hotels without facilities essential for hotel operation have begun to increase, as the standards for facility, rating, and operation were not stipulated due to the revision of individual laws only to solve the challenges facing the market. Early implementers reflected essential facilities for hotel operation, such as lobby, front, and linen room in living accommodation facilities, but after being used as residential facilities, living accommodation facilities have been minimized and supplied essential facilities for hotel operation. So living accommodation facilities have remodeled stairs and corridors for operating the hotel. Nevertheless, the Ministry of Land, Infrastructure and Transport recently revised the Enforcement Decree of the Building Act to prohibit the use of living accommodation facilities as living-type 'lodging facilities' for residential purposes, so residents and civic groups are protesting that it is a belated administration. In recent years, disputes directly related to hotel operation have been decreasing as pre-sale hotels have been used as residential alternative facilities, but if the revision of the building law requires only hotel facilities with out living accommodation, disputes are expected to increase. In addition, in the past, pre-sale hotels were supplied only with small floor space and officetel-level pre-sale prices, but in recent years, they have become high-end and large, and the revised policy is questionable whether they will be economical when used as competitive hotels. In this study, the relevant laws such as the Building Act, the Building Sales Act, and the Public Health Management Act and enforcement rules, which are the legal systems applied to condominium-type hotels, are reviewed, and the problems caused by individual laws are analyzed. Then the case of a hotel in dispute is analyzed. It is hoped that by identifying the causes of disputes and suggesting ways to systematically reduce disputes, we hope that this will contribute even a little to the direction of improvement.