Remodeling: A Second Best Option for Reconstruction?

Remodeling involves changing the exterior of an apartment while leaving the framework intact, often compared to human cosmetic surgery. It can make something prettier or more handsome, but ultimately, the original structure is important.

In contrast, reconstruction is a method of completely demolishing a building and rebuilding it from scratch.

Reconstruction typically involves building new structures up to the allowed floor area ratio and selling the excess to cover construction costs. However, complexes that have already used almost all of the allowed floor area ratio for their land have little room for expansion, meaning fewer homes to sell to others.

In such cases, construction costs must be borne by residents, which eliminates the incentive for reconstruction. Thus, despite being old, complexes cannot pursue reconstruction and opt for remodeling as a second-best option.

Furthermore, while redevelopment and reconstruction are included in urban improvement projects, remodeling is governed by the Housing Act and Building Act, not the Urban and Residential Environment Improvement Act, classifying it as a somewhat marginalized project.

67% consent is required for cooperative establishment.

Remodeling, which involves repairing an existing framework rather than demolishing and rebuilding entirely, is known to be more difficult. This is why specialized construction companies, different from well-known large construction firms, are prominent in the remodeling market.

If safety inspection results in D or E grades, there are safety defects, requiring immediate reconstruction regardless of the apartment's age. C grade is conditional reconstruction, which almost always passes these days, meaning it's deemed safe enough not to reconstruct, but remodeling is possible.

A and B grades also do not allow for reconstruction but permit remodeling. The safety inspection standards for remodeling are the same as for reconstruction.

Complexes that receive a C grade in safety inspection cannot undergo vertical expansion to increase height, but horizontal expansion is possible. This is done by adding a separate building in available space within the complex or by subdividing large units.

The increase in the number of households is limited to 15% of the original, and there are separate limits for expansion based on unit size.

It can be raised by a maximum of 3 floors compared to the existing building.

For example, a 14-story building can only be raised by a maximum of 2 floors.

At this stage, overall design elements such as the apartment's exterior design and colors are reviewed. This process is similar to the urban planning and project implementation plan review for redevelopment and reconstruction.

Furthermore, there is no obligation for public donations or a surplus profit recapture system, nor are there requirements for small or rental housing.

Remodeling projects go through a 'rights change plan' stage, similar to the management and disposition plan in urban improvement projects. This stage calculates the distribution of project profits and additional contributions per cooperative member. After this, to receive project plan approval, a 70% overall complex consent rate is required, along with a 50% consent rate per building. For cooperative establishment, 67% consent was needed.

This stage is a thorough re-verification of the structural safety of the building, and upon its completion, only the actual construction and occupancy phases remain.