The major reconstruction complexes in Mokdong New Town, Yangcheon District, Seoul, are expected to accelerate the establishment of associations starting June. With the implementation of the law (commonly known as the maintenance project fast track) that simplifies reconstruction and redevelopment procedures from June, complexes not designated as maintenance zones plan to set up promotion committees for establishing associations. The industry forecasts that the reconstruction period in Mokdong will be shortened by more than three years as the procedures for establishing reconstruction associations will progress rapidly with the enforcement of the maintenance project fast track.
According to the maintenance industry on the 28th, the Mokdong New Town 7 complex will begin acquiring consent from landowners to create a promotion committee (hereinafter referred to as the promotion committee) in June. Mokdong 7 is located at the center of the 14 complexes in Mokdong New Town and is adjacent to Mokdong Station on Line 5; it is also close to Mokwon Elementary and Middle School, which are highly preferred in Mokdong. There was a conflict among owners regarding whether to proceed with reconstruction as an association or through a trust method, but a vote in February confirmed the association method for reconstruction.
The reason Mokdong 7 is trying to establish a promotion committee starting in June is related to the amendment to the enforcement decree of the "Urban and Residential Environment Maintenance Act" (Maintenance Act) that takes effect at that time. The amendment, which takes effect on June 4, contains extensive content to simplify the reconstruction and redevelopment procedures and is also referred to as the "maintenance project fast track." Among the contents of the amendment, there is also a provision that allows the establishment of a promotion committee before designating a maintenance zone. The promotion committee is a legally effective organization that can initiate the reconstruction project before establishing an association. Until now, only places designated as maintenance zones could establish a promotion committee with consent from 50% of the landowners.
A maintenance industry official noted, "I understand that Mokdong 7 plans to seek consent from landowners to establish a promotion committee starting in June, when the fast track will be applied," adding, "The plan is to first create the promotion committee before the designation of a maintenance zone to enable quick reconstruction." The official also stated, "Among other complexes in Mokdong attempting reconstruction through the association method, there seems to be a prevailing sentiment to actively utilize this system improvement, so I understand they are choosing to establish a promotion committee first."
According to Yangcheon District, of the complexes 1 to 14 in Mokdong New Town, those already designated as maintenance zones are complexes 6, 8, 12, 13, and 14. The remaining complexes have not been designated as maintenance zones. Among those not designated as maintenance zones, the complexes that have decided to pursue reconstruction through the association method are complexes 7 and 3 and 4. These complexes will be able to establish a promotion committee before the maintenance zone designation starting in June.
The industry anticipates that the quick establishment of promotion committees due to the reconstruction fast track will speed up the reconstruction of complexes in Mokdong New Town. There are also forecasts that the reconstruction period will be shortened by 2 to 3 years or more. Kim Je-kyung, head of Tumi Real Estate Consulting, said, "If the procedures for establishing an association are shortened due to the reconstruction fast track, and related processes such as safety inspections and maintenance planning are expedited, a minimum of 2 to 3 years, and at most more than 5 years, can be saved."
Mokdong New Town was built between 1985 and 1988, consisting of 14 complexes. The total scale is 392 buildings and 26,629 households. Once all 14 complexes complete reconstruction, a complex with over 53,000 households will be established.